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A

Project Study Report

On

Training Undertaken at

“Franchisee & Remiseship Development in Karvy”

Submitted in partial fulfillment for the


Award of degree of

Master of Business Administration

Submitted By:- Submitted to:-


Chetan Daiya Prof. G.N.Purohit
MBA Part 3rd (Director)

VYAS INSTITUTE OF MANAGEMENT

2008-2010

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PREFACE

THE CORPORATE PROGRAM of MBA course is a well structured and


integrated programme. The course of management gives a practical knowledge
in our study course. Industries give us much information about the different
product and services we use in our day to day life.

It is highly said that “practice makes a man perfect” the summer project training
which is a part of M.B.A to get a practical understanding and training of the
business management. Thus the industrial training which is a part of M.B.A
course helps the student to get the knowledge about the actual environment of
an organization.

Karvy Stock Broking ltd. is one of such company dealing in Share market
Derivatives, Commodities, Mutual fund IPO distribution with almost branches in
overall India.

It involved the study of Marketing activities of the organization. I have under


taken industrial training in Karvy Stock Broking ltd. at Delhi crossing from 27-
may-2009 to 6-july-2009 as a part of my MBA course curriculum and I thus,
present a project report on it at the best of my ability knowledge and work done.

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ACKNOWLEDGEMENT

I am really happy and exited in representing this summer training project report
before you.

I must express my gratitude towards Karvy Stock Broking Ltd, Delhi

for giving mean opportunity to work with on this report.

And of course I am very much thankful to our honorable Director Prof.


G.N.Purohit (PROJECT GUIDE) for giving me opportunity and his guidance help
me through out preparing this report. He has also provided me a valuable
suggestions and excellence guidance about this training, which proved very
helpful to me to utilize my theoretical knowledge in practical field.

At last I am also thankful to my friends, to all known and unknown individuals


who have given me their constructive advise, educative suggestion,
encouragement, co-operation and motivation to prepare this report.

Chetan Daiya

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EXECUTIVE SUMMARY

India’s economy is highly developing. The development is taken place due to the
growth in the financial system. This financial system provides the background to
various investors regarding varied options to invest. Thus, development of the
economy depends on how these investors invest for the well being in long run.

As financial markets become more sophisticated and complex, investors need a


financial intermediary who provides the required knowledge and professional
expertise on successful investing. Mutual Funds represent perhaps the most
appropriate investment opportunity for investors. No wonder the concept of
Mutual Fund was initially developed in the U.S. market, but the entry of the
concept in the Indian Financial Market was in the year 1964 with the formulation
of the UTI, at the initiative of the RBI and Govt. of India.

For most people, money is a delicate matter and when it comes to investing they
are wary. Simply because there are many investment options out there, each out
promising the other. An important question facing many investors is whether to
invest in Banks, National Savings, Post office, Non-banking finance companies,
Fixed deposits, Shares etc. or to invest distinctively in Mutual Funds.

I have observed that approximately 40% of the people are unaware of Trading
but most of them are interested to know about trading and ready to attend
seminar arranged by KARVY. They are also interested to work with KARVY if
sufficient information is provided to them about Trading and KARVY.

People from service class prefers safety of income plus the regular income as
well as tax benefits while on the other hand Professional and Businessman focus
on high return with some risk.

For growth and development of the Stock Market Industry, the misconception
regarding Share Market should be removed & the awareness for the same
should be made.

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CONTENTS

1. Introduction

Introduction of the Industry


Introduction of the Organization
 Company Details
 Where Karvy Stand In The Market?
 Mission Statement of ‘Karvy’
 Karvy Group Company

2. Profile of the broking house in the stock market

 Karvy
 Kotak securities
 Share khan
 India infoline
 Bonanza
 Reliance money
 Religare securities
 India bulls
 Anand rathi
 Hem Securities
 Angel Broking

3. Research methodology objective and limitation


Title of the Study
Duration of the Project
Objective of study
Type of Research
Scope of study
Limitation of study

4. Facts and Finding


Problem definition
Research design
Source of data
Research objective

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Statement of problem
Objective of the research project

5. Conclusions
6. Recommendation and suggestions
7. Q u e s t i o n n a i r e
8.Bibliography

INTRODUCTION
COMPANY DETAILS
Background

Karvy Consultants Limited was established in 1982 at Hydrabad. It was


established by a group of Hydrabad-based practicing Chartered Accountants. At
initial stage it was very small in size. It was started with a capital of Rs. 1,50,000.

In starting it was only offering auditing and taxation services. Later, it acts into the
Registrar and Share transfer activities and subsequently into financial services
and other services like Financial Product Distribution, Investment Advisory
Services, Demat Services, Corporate Finance, Insurance etc.

All along, Karvy’s strong work ethics and professional background leveraged with
Information Technology enabled it to deliver quality to the individual. A decade of
commitment, professional integrity and vision helped Karvy achieving a
leadership position in its field when it handled largest number of corporate and
retail that proved to be a sound business synergy.

Today, Karvy has access to millions of Indian shareholders, besides companies,


banks, financial institutions and regulatory agencies. Over the past one and half
decades, Karvy has evolved as a veritable link between industry, finance and
people.

In January 1998, Karvy became first Depository Participant in Andhra Pradesh.


An ISO 9002 Company, Karvy’s commitment to quality and retail reach has made
it an Integrated Financial Services Company.

Today, company has 230 branch offices in 164 cities all over the India. The
company adds 5 new offices every month to the company’s ever growing
national network in every nook and corner of the country. The company service
over 16 million individual investors, 180 corporate and handle corporate
disbursements that exceed Rs.2500 Crores.

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WHERE KARVY STAND IN THE MARKET?
KARVY is a legendary name in financial services, Karvy’s credit is defined by its
mission to succeed, passion for professionalism, excellent work ethics and
customer centric values.

Today KARVY is well known as a premier financial services enterprise, offering a


broad spectrum of customized services to its clients, both corporate and retail.
Services that KARVY constantly upgrade and improve are because of company’s
skill in leveraging technology. Being one of the most techno-savvy organizations
around helps company to deliver even more cost effective financial solutions in
the shortest possible time.

What bears ample testimony to Karvy’s success is the faith reposed in company
by valued investors and customers, all across the country. Indeed, with Karvy’s
wide network touching every corner of the country, even the most remote
investor can easily access Karvy’s services and benefit from company’s expert
advice.

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KARVY GROUP

Karvy Consultants Limited

Karvy Securities Limited

Karvy Investor Services Limited

Karvy Stock broking Limited

Karvy Computer Shares Pvt. Ltd.

Board of Directors
Karvy Consultants Limited

Parthasarathy C
Yugandhar M
Ramakrishna M S
Prasad V Potluri
Robert Gibson
Sanjay Kumar Dhir
R Shyamsunder

[Table1: BODs of Karvy Consultants Limited]

Karvy Investor Services Limited

Parthasarathy C
Yugandhar M
Ramakrishna M S

[Table2: BODs of Karvy Investor Services Limited]

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Karvy Securities Limited

Parthasarathy C
Yugandhar M
Ramakrishna M S
Ajay Kumar K
William Samuel
Nicholas Tully

[Table3: BODs of Karvy Securities Limited]

Karvy Stock Broking Limited

Parthasarathy C
Yugandhar M
Ramakrishna M S
Ajay Kumar K
Kutumba Rao V
William Samuel
Nicholas Tully

[Table4: BODs of Karvy Stock Broking Limited]

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C Parthasarathy, Chairman & Managing Director
Mr. C Parthasarathy, a leader in the financial services
industry in India is responsible for building KARVY as
one of India's truly integrated Financial Services
Provider; he is a fellow member of the Institute of
Company Secretaries of India, a Fellow Member of the
Institute of Chartered Accountants of India and a
graduate in law.As Chairman and Managing Director, he
oversees the group's operations and renders vision and
business direction.
His passion and vision for achieving leadership in the business made KARVY a
leading financial intermediary ranking them as number one in the registrar, Share
Transfer and IPO Distribution businesses. He also holds directorship in KARVY
Securities Limited, KARVY Stock Broking Limited, KARVY Investor Services
Limited, KARVY Computershare Private Limited, KARVY Commodities Broking
Private Limited, EPR Pharmaceuticals Private Limited and Ocean Sparkles Limited.

M Yugandhar, Managing Director

Mr. M Yugandhar, Managing Director, founder member


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

M S Ramakrishna, Executive Director

Mr. M S Ramakrishna, Director, founder member of


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

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years of experience in the financial services arena.

Achivements
• Among the top 5 stock brokers in India (4% of NSE volumes)
• India's No. 1 Registrar & Securities Transfer Agents
• Among the top 3 Depository Participants
• Largest Network of Branches & Business Associates
• ISO 9002 certified operations by DNV
• Among top 10 Investment bankers
• Largest Distributor of Financial Products
• Adjudged as one of the top 50 IT uses in India by MIS Asia
• Full Fledged IT driven operations

Quality Policy
To achieve and retain leadership, Karvy shall aim for complete customer
satisfaction, by combining its human and technological resources, to provide
superior quality financial services. In the process, Karvy will strive to
exceed Customer's expectations.
Quality Objectives
As per the Quality Policy, Karvy will :
 Build in-house processes that will ensure transparent and harmonious
relationships with its clients and investors to provide high quality of
services.
 Establish a partner relationship with its investor service agents and
vendors that will help in keeping up its commitments to the customers.
 Provide high quality of work life for all its employees and equip them with
adequate knowledge & skills so as to respond to customer's needs.
 Continue to uphold the values of honesty & integrity and strive to establish
unparalleled standards in business ethics.
 Use state-of-the art information technology in developing new and
innovative financial products and services to meet the changing needs of
investors and clients.
 Strive to be a reliable source of value-added financial products and
services and constantly guide the individuals and institutions in making a
judicious choice of same.
 Strive to keep all stake-holders(shareholders, clients, investors,
employees, suppliers and regulatory authorities) proud and satisfied.

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Mission Statement of ‘Karvy’
An organization exists to accomplish something or achieve something. The
mission statement indicates what an organization wants to achieve. The
mission statement may be changed periodically to take advantage of new
opportunities or respond to new market conditions.

Karvy’s mission statement is “To Bring Industry, Finance and People


together.”

Karvy is work as intermediary between industry and people. Karvy work as


investment advisor and helps people to invest their money same way
Karvy helps industry in achieving finance from people by issuing shares,
debentures, bonds, mutual funds, fixed deposits etc.

Company’s mission statement is clear and thoughtful which guide


geographically dispersed employees to work independently yet collectively
towards achieving the organization’s goals.

Vision of Karvy

Company’s vision is crystal clear and mind frame very directed. “To be
pioneering financial services company. And continue to grow at a healthy
pace, year after year, decade after decade.” Company’s foray into IT-enabled
services and internet business has provided an opportunity to explore new
frontiers and business solutions. To build a corporate that sets benchmarks for
others to follow.

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Behind the Picture: What Customers matter for KARVY?
The underlying picture forming answer for above question is given below.

Market Brand Customer


Power Preference Value

RELATIONSHIPS
OUR COMPETITIVE ADVANTAGE

[Fig.1 Competitive Advantage of Karvy]

Every year with this picture keeping in mind ‘Karvy accelerate with Recovery,
Revival and Reappearance.’

Karvy has started 2004 on a strong note with the realization to signal some of the
challenges it faced previous year. In a competitive market and a branded
business, Karvy need to carefully manage itself to avoid down trading or brand
shifts by consumers.

For Karvy, Jamnagar branch 2003 was truly exhilarating because of:

• Successful implementation of a carefully crafted


strategy.
• Excellence in execution.
• Immense learning enabling to set up a launch pad for
revitalizing itself.

Some competitive advantages are long lasting. These are intangible, difficult to
replicate and thus more sustainable. Karvy has focused on some of these to
gain competitive advantages. There are:

• Winning culture and a desire to excel in everything Karvy do.


• Strong meaningful relationships with Customers along with
Strategic Partners in which Karvy operate and above all, its own staff.

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Karvy value and carefully nurture relationships with customers. Karvy truly
believe that more than technological prowess and business process innovations,
it is the ‘focus on relationships’ which has been the corner stone of satisfying and
successful presence in India over many years.

This has been possible with deep insight of consumer behavior as well as market
demand drivers, understanding of the arena where to operate and quality
execution – all thanks to a ‘greater team’ that makes this happen.

Karvy’s customers consider themselves part of Karvy family and share their
experiences and dreams with other customers and thus Karvy becomes
successful not only in relating customers but also gains new customers from
satisfied prevailing customers.

Karvy want to create a strong emotional bond with new customers promoted by
prevailing customers.

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Karvy Values:
Integrity
Responsibility
Reliability
Unity
Understanding
Excellence
Confidentiality

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

Karvy Group Companies


KARVY CONSULTANTS LIMITED

As the flagship company of the Karvy Group, Karvy Consultants Limited


has always remained at the helm of organizational affairs, pioneering business

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policies, work ethic and channels of progress.
Having emerged as a leader in the registry business,
the first of the businesses that we ventured into, we have now transferred this
business into a joint venture with Computershare Limited of Australia, the
world’s largest registrar. With the advent of depositories in the Indian capital
market and the relationships that we have created in the registry business, we
believe that we were best positioned to venture into this activity as a
Depository Participant. We were one of the early entrants registered as
Depository Participant with NSDL (National Securities Depository Limited), the
first Depository in the country and then with CDSL (Central Depository
Services Limited). Today, we service over 6 lakhs customer accounts in this
business spread across over 250 cities/towns in India and are ranked amongst
the largest Depository Participants in the country. With a growing secondary
market presence, we have transferred this business to Karvy Stock Broking
Limited (KSBL), our associate and a member of NSE, BSE and HSE.

KARVY STOCK BROKING LIMITED

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

KARVY INVESTOR
SERVICES LIMITED

Recognized as a leading merchant banker in the country, we are


registered with SEBI as a Category I merchant banker. This reputation was

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

KARVY Computershare
Private Limited

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

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KARVY GLOBAL
SERVICES LIMITED

The specialist Business Process Outsourcing unit of the Karvy Group.


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

Karvy Comtrade
Limited

At Karvy Commodities, we are focused on taking commodities trading to


new dimensions of reliability and profitability. We have made commodities
trading, an essentially age-old practice, into a sophisticated and scientific
investment option.
Here we enable trade in all goods and products of agricultural and mineral
origin that include lucrative commodities like gold and silver and popular items
like oil, pulses and cotton through a well-systematized trading platform.
Our technological and infrastructural strengths and especially our street-smart
skills make us an ideal broker. Our service matrix is holistic with a gamut of
advantages, the first and foremost being our legacy of human resources,
technology and infrastructure that comes from being part of the Karvy Group.
Our wide national network, spanning the length and breadth of India, further
supports these advantages. Regular trading workshops and seminars are
conducted to hone trading strategies to perfection. Every move made is a

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calculated one, based on reliable research that is converted into valuable
information through daily, weekly and monthly newsletters, calls and intraday
alerts. Further, personalized service is provided here by a dedicated team
committed to giving hassle-free service while the brokerage rates offered are
extremely competitive

Karvy Insurance
Broking Limited

At Karvy Insurance Broking Limited., we provide both life and non-life


insurance products to retail individuals, high net-worth clients and
corporates. With the opening up of the insurance sector and with a large
number of private players in the business, we are in a position to provide tailor
made policies for different segments of customers. In our journey to emerge as
a personal finance advisor, we will be better positioned to leverage our
relationships with the product providers and place the requirements of our
customers appropriately with the product providers. With Indian markets
seeing a sea change, both in terms of investment pattern and attitude of
investors, insurance is no more seen as only a tax saving product but also as
an investment product. By setting up a separate entity, we would be positioned
to provide the best of the products available in this business to our customers.
Our wide national network, spanning the length and breadth of India, further
supports these advantages. Further, personalized service is provided here by
a dedicated team committed in giving hassle-free service to the clients

KARVY
REALTY&SERVICES(INDIA)Limited

KARVY Realty & Services (India) Limited (KRSIL) is engaged in the


business of real estate and property services offering value added property
services and offers individuals and establishments a myriad of options across
investments, financing and advisory services in the realty sector.

KARVY Realty & Services (India) Limited …………………………………Take


a Realty Byte !!!
Promoted by the KARVY Group of companies, India’s largest integrated
financial services company. KARVY Realty & Services India Limited carries
forward its legacy of trust and excellence in investor and customer services
delivered with a passion for services and the highest level of quality that align
with global standards.

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KARVY Realty & Services (India) Limited welcomes you to take a reality
check on realty options that you can be rest assured of and of course profit
from.

Welcome to Karvy Stock Broking


KARVY Stock Broking Limited, one of the cornerstones of the KARVY edifice,
flows freely towards attaining diverse goals of the customer through varied
services. It creates a plethora of opportunities for the customer by opening up
investment vistas backed by research-based advisory services. Here, growth
knows no limits and success recognizes no boundaries. Helping the customer
create waves in his portfolio and empowering the investor completely is the
ultimate goal. KARVY Stock Broking Limited is a member of:
• National Stock Exchange (NSE)
• Bombay Stock Exchange (BSE)
• Hyderabad Stock Exchange (HSE)
Member - National Stock Exchange (NSE) and The Bombay Stock Exchange
(BSE).

Karvy Stock Broking Limited, one of the cornerstones


of the Karvy edifice, flows freely towards attaining diverse goals of the customer
through varied services. Creating a plethora of opportunities for the customer by
opening up investment vistas backed by research-based advisory services. Here,
growth knows no limits and success recognizes no boundaries. Helping the
customer create waves in his portfolio and empowering the investor completely is
the ultimate goal.

Stock Broking Services


It is an undisputed fact that the stock market is
unpredictable and yet enjoys a high success rate as a wealth management and
wealth accumulation option. The difference between unpredictability and a safety
anchor in the market is provided by in-depth knowledge of market functioning
and changing trends, planning with foresight and choosing one’s options
with care. This is what we provide in our Stock Broking services.
We offer services that are beyond just a
medium for buying and selling stocks and shares. Instead we provide services
which are multi dimensional and multi-focused in their scope. There are several
advantages in utilizing our Stock Broking services, which are the reasons why it
is one of the best in the country.
We offer trading on a vast platform ; National
Stock Exchange and Bombay Stock Exchange. More importantly, we make

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trading safe to the maximum possible extent, by accounting for several risk
factors and planning accordingly. We are assisted in this task by our in-depth
research, constant feedback and sound advisory facilities. Our highly skilled
research team, comprising of technical analysts as well as fundamental
specialists, secure result-oriented information on market trends, market analysis
and market predictions. This crucial information is given as a constant feedback
to our customers, through daily reports delivered thrice daily ; The Pre-session
Report, where market scenario for the day is predicted, The Mid-session Report,
timed to arrive during lunch break , where the market forecast for the rest of the
day is given and The Post-session Report, the final report for the day, where the
market and the report itself is reviewed. To add to this repository of information,
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 informed on the
immediate trends in the stock market. In addition, our specific industry reports
give comprehensive information on various industries. Besides this, we also offer
special portfolio analysis packages that provide daily technical advice on scrips
for successful portfolio management and provide customized advisory services to
help you make the right financial moves that are specifically suited to your
portfolio.
Our Stock Broking services are widely networked across India, with the number
of our trading terminals providing retail stock broking facilities. Our services have
increasingly offered customer oriented convenience, which we provide to a
spectrum of investors, high-networth or otherwise, with equal dedication and
competence.
But true to our spirit, this success is not our final destination, but just a platform to
launch further enhanced quality services to provide you the latest in convenient,
customer-friendly stock management.
Over the years we have ensured that the trust of our customers is our biggest
returns. Factors such as our success in the Electronic custody business has
helped build on our tradition of trust even more. Consequentially our retail client
base expanded very fast.
To empower the investor further we have made serious efforts 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 foray into commodities broking has been path breaking and we are in the
process of converting existing traders in commodities into the more organized
mainstream of trading in commodity futures, both as a trading and risk hedging
mechanism.

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

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Depository Participants

The onset of the technology revolution in


financial services Industry saw the emergence of Karvy as an electronic
custodian registered with National Securities Depository Ltd (NSDL) and
Central Securities Depository Ltd (CSDL) in 1998. Karvy 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, Internet
access to accounts and an easier transaction process in order to offer more
convenience to individual and corporate investors. A team of professional and
the latest technological expertise allocated exclusively to 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.

Distribution of Financial 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
Finapolis , thereby providing planning and advisory services to the mass affluent.
Here we understand the customer needs and lifestyle in the context of present
earnings and provide adequate advisory services that will necessarily help in
creating wealth. Judicious planning that is customized to meet the future needs
of the customer deliver a service that is exemplary. The market-savvy and the
ignorant investors, both find this service very satisfactory. The edge that we have
over competition is our portfolio of offerings and our professional expertise. The
investment planning for each customer is done with an unbiased attitude so that
the service is truly customized.

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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.

Advisory 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 of
market news, trends, investment schemes and research-based opinions from
experts in various financial fields.

Private Client 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 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 has enjoyed a high success rate.

Branches
State Total

23
Branche
s
ANDHRA PRADESH 37
ASSAM 8
BIHAR 10
CHANDIGARH 1
CHHATTISGARH 7
GOA 2
GUJARAT 26
HARYANA 15
HIMACHAL PRADESH 3
JAMMU & KASHMIR 1
JHARKAND 7
KARNATAKA 48
KERALA 24
MADHYA PRADESH 19
MAHARASHTRA 27
MANIPUR 1
MEGHALAYA 1
NEW DELHI 11
ORISSA 13
PUNJAB 11
RAJASTHAN 10
SIKKIM 1
TAMIL NADU 57
TRIPURA 1
UNION TERRITORY 1
UTTAR PRADESH 38
UTTARANCHAL 5
WEST BENGAL 26

Business Associates
State Business
Associates
ANDHRA 53
PRADESH
BIHAR 2

24
DELHI 7
GUJARAT 17
HARYANA 7
HIMACHAL 1
PRADESH
JHARKHAND 1
KARNATAKA 15
KERALA 29
MADHYA 6
PRADESH
MAHARASTRA 21
ORISSA 3
PUNJAB(UT) 11
RAJASTHAN 4
TAMILNADU 8
TRIPURA 3
UTTAR 19
PRADESH
WEST 5
BENGAL

Insurance
Products
Aviva
• Life Shield Plan
• Young Achiever Plan
Bajaj
• Life Long Gain Plan
• Invest Gain Plan
• Cash Gain Plan
• Health Care Plan
• Swarna Vishranthi Plan
Bharati AXA
• Future Confident II
• Future Confident
• Secure Confident Plan
• Wealth Confident Plan
Birla Sun Life
25
• Life Companion-Money Back Plan
• My Child Plan
• Ladyguard Plan
• Magnum Multiplier Plus
Chola
• Parivar of the Cholamandalam
• Parivar - The complete family protection plan
HDFC
• Children's Plan
• Single Premium Whole of Life Plan
• Loan Cover Insurance Policy
• The Money Back Plan
• Endowment Assurance Plan
• Unit Linked Pension Plus
• Unit Linked Endowment Suvidha Plus
ICICI Prudential
• The Life Guard Plan
• Cancer Care
• Diabetes Care
• Diabetes Care Plus
ING Vysya
• The Conquering Life Plan
Kotak
• Kotak Flexi Plan
• Safe Investment Plan
• Child Advantage Plan
• HeadStart Assure Wealth
• Money Back Plan

LIC
• Jeevan Akshay
• The Bima Gold Plan
• Jeevan Nidhi Plan
• Future Plus - ULPP
• Jeevan Rekha Plan
• Jeevan Bharathi
• Jeevan Shree Policy
• Jeevan Sathi Plan
• Jeevan Anand Policy
• Housing Loans
• New Child Plan - Jeevan Anurag
• Endowment Assurance Policy
MNYL
• Life Gain Plus
• Life Maker

26
• Child Money Back Plan
• Whole Life Plan
• The Life Gain Plus Policy
• Magic of Whole Life
• Easy Life Retirement Plan
• Life Maker Pension Plan
• Life Pay Money Back Plan
• New Life Invest
Met - Life
• Bhavishya Plan
Reliance Life Insurance
• The Yuva Shree:Child Plan
• Money Guarantee Plan
SBI
• The Setubandhan Plan
Tata AIG
• The Nirvana Plus Plan
• Health Protector Plan
• Mahalife Life Insurance Plan
• Life Plus
• Invest Assure II

Terms and Conditions


TERMS AND CONDITIONS GOVERNING INTERNET BASED TRADING
Please read the following instructions before signing the client agreement
1. Client (first holder) should initial at the places marked with a #. ( Total of
10 initials along side markings and at the bottom of each page)
2. Only the first holder signs on the client agreement. ( 1signature)
3. The client agreement should be witnessed
4. Please read the general instructions mentioned in the instruction booklet

DESCRIPTION OF PARTIES
This agreement is entered into on ----/-----/------- between Karvy Stock Broking
Limited, member broker # of the National Stock Exchange of India Limited,
ordinarily carrying on business in sale and purchase of securities and is bearing
SEBI Registration Number INB 230770138 and carrying on such business in the
name and style of Karvy Stock Broking Limited from its registered office at 529,
Road No.4, Banjara Hills Hyderabad 500 034, Andhra Pradesh, India
(hereinafter referred to as the “member broker”, which expression shall unless

27
repugnant to the context or meaning thereof, be deemed to mean and include its
legal successors and permitted assigns)
------First Holder’s Name------- an individual s/o -----Father’s / Husband’s
Name---------- residing at # Address-------------- intending to transact in securities
using the services of the member broker, through the online trading terminal of
the said member broker (hereinafter referred to as “the client” which expression
shall, unless repugnant to the context or meaning thereof, be deemed to mean
and include its legal successors and permitted assigns)
WHEREAS:
1. A. The member broker is a member of National Stock
Exchange of India Limited (hereinafter referred to as “the exchange”) and
holds a certificate of registration granted under Rule 4 of the Securities
and exchange Board of India (Stock Brokers and Stock Sub-Brokers)
Rules and Regulations, 1992 ; AND
2. B. The member broker offers online trading services to
the client, subject to the terms of the present agreement and the SEBI
guidelines in this regard.
3. C. The member broker and the client are required to
enter into an agreement laying down the scope of their authority/
responsibility, in relation to the transactions in securities using the online
trading facilities that the member broker makes available to them
4. D. The client is desirous of investing/ trading in securities
admitted for dealing on the National Stock Exchange as defined by the
bye-law of the said Exchange through online trading services by the
member broker.
5. E. The member broker is satisfied and shall
continuously satisfy themselves of the genuineness and financial
soundness of the client and investment objectives relevant to the services
to be provided.
6. F. The client is satisfied with the capability of the
member broker to deal in securities on behalf of them and the client shall
continue to satisfy themselves of the same before executing orders
through the online trading facilities of such member broker.
7. G. The member broker has taken steps and shall take
steps to make the client aware of the precise nature of the member
broker’s liability for business to be conducted, including any limitations on
that liability and the capacity in which it acts.

NOW IT IS AGREED BY AND BETWEEN THE PARTIES HERETO AS


FOLLOWS:
1. INTERPRETATION OF RECITALS
The recitals form an integral part of this agreement.

1. DEFINITIONS
1. 2.1 For the purposes of this agreement

28
(a) “Client” means and includes any individual, who transacts in securities
through the auspices of the member broker herein named as such, and
seeks to transact such business in securities through the use of E Trading
facilities of the said member broker.
(b) “Depository” refers to the National Securities Depository Limited, Mumbai.
(NSDL)
(c) “Online Trading” means carrying on the business of stock broking using
electronic systems as Order Routing mechanisms to forward orders to
the electronic system of the Stock Exchange.
(d) “Exchange” refers to the National Stock Exchange of India Limited. (NSE)
(e) “Member Broker” is Karvy Stock Broking Limited, a stock broker registered
as a Stock Broker in terms of the SEBI (Stock Brokers and Sub-Brokers)
Rules and Regulations, 1992 and are registered as Stock Brokers with
SEBI in terms of the said rules and regulations.
1. (f) “Trading Account” shall mean a rupee account opened by the client
with the member broker, which is linked to the online trading facility through the
web-site.
(g) “Depository Participant” or “Designated Depository Participant” means
Karvy Depository Participant or any other depository participant as may be
specially designated as a Depository Participant by Karvy Stock Broking
Limited, respectively.
(h) “Bank” or “Designated Bank” means any bank as may be notified from
time to time on the website, with whom the member broker has made
arrangement in respect of the Online Trading Services to be provided to the
clients in terms of the presents.
(i) “Bank Account” or “Designated Bank Account” means an account
opened, maintained and operated by the clients with a bank in terms of and
pursuant to the requirements mentioned in the agreement.
(j) “Demat Account” or “Designated Demat Account” means an account
maintained in terms of the Regulation 42 of the SEBI (Depositories and
Participants) Regulations, 1996 by Karvy Depository Participant in its
capacity as a Depository Participant or any other Depository Participant as may
be specified by Karvy Stock Broking Limited.
(k) “Margin Trading” refers to trading in securities by paying an advance
amount as margin to the member broker in cash and ‘ or as securities, in the
following events:
(i) Purchase of securities of a value in excess of the money with the
purchaser, in the Trading Account, at the time when the order is
placed on the website.
1. (ii) Sale of securities in excess of the securities available in the demat
account of the seller on the date
when the order is placed on the website.
(l) “Pay-in Date” means the day on which the clearing house of the stock
exchange receives in the securities and monies due from the members
pursuant to their transactions in securities, over the period of the settlement
cycle of the Exchange.

29
(m) “Pay-out Date” means the day on which the clearing house of the stock
exchange pays out securities and monies due to members pursuant to their
transactions in securities, over the period of the settlement cycle of the
Exchange.

(n) “Terms and Conditions” means the information available on the website
under the head “Terms and Conditions” and includes but is not limited to
any information available on clicking on any hyperlink to the section named
“terms and Conditions” on the said website.
(o) “Website” means the website located at URL http://www.karvy.com
2.2 All words and terms not defined in this agreement or on the website
mentioned above shall take on the same meanings as may be attributed in terms
of the SEBI / Exchange Guidelines, Rules and regulations.

1. 3. REPRESENTATIONS AND WARRANTIES


3.1 The clients hereby warrant that they are capable of executing
the present agreement and that the terms of the presents are
not in contravention of any rights of any party with whom such
client has any agreements any time prior to the execution of
this Agreement.
3.2 The clients warrant that they have, maintain and operate a valid
account with a designated bank. The clients state that they
have opened a valid and subsisting Demat Account with a
designated depository participant.
3.3 The clients agree to provide and continue to provide all details
about themselves as may be required by the member broker
including but not restricted to PAN Number, and state that all
details and facts represented to the member broker are true.
3.4 The member broker states that they have complied with all
statutory and regulatory requirements to offer the Online
Trading Services through the website www.karvy.com.
3.5 The clients warrant that all or any securities deposited by them
with the member broker in respect of margin trading
requirements or otherwise, are owned by them and that the title
thereof is clear and free of encumbrances.

2. 4. REGISTRATION AND ACCOUNT OPENING


4.1 The member broker shall, after registration, permit the registered user,
a trading password which enables him/her /them to avail of the
facilities of Online Trading through the said website. All terms
regarding the use and modification of such password shall be
governed by information on the website. The clients are aware that
authentication technologies and strict security measures are required
for the Internet trading through order routed system and undertake to

30
ensure that the password of the client and /or of their authorized
representative are not revealed to any third party. The clients also
agree to indemnify the member broker from any loss, injury, claim or
any action instituted against the member arising from the misuse of
the password by any party.
4.2 The services on the website shall be available to the reregistered user
subject to the terms and conditions mentioned thereof.
4.3 The clients shall furnish a duly filled application form to the member
broker indicating their intention to transact in securities using the
Online Trading facilities on the website, in the format supplied by the
member broker.
4.4 The clients shall provide to the member broker, a power of attorney
authorizing the member broker to debit/credit/block/create lien/pledge
clients depository accounts through their authorized personnel, to the
extent of the transaction conducted by the said clients any due and
payable to the member broker.
4.5 The clients shall authorize the member broker to debit/credit or block
his bank account in the manner as per the procedure laid down in the
terms and conditions and as per practices followed by the bank in this
regard. The clients also authorize the member broker to create lien on
the amount lying in their bank account in the manner specified in the
terms and conditions.
4.6 The member broker, after satisfying themselves that the pre-requisites
have been met by the clients, may register the clients as a registered
user of the website and the Online Trading facilities may be made
available to the clients.
4.7 The member broker may. Open one or more accounts in the name of
the registered user in the books of the member broker.
4.8 The clients agrees that all the orders placed by them for securities
through the website shall be within the parameters defined and
mentioned in the terms and conditions.

5. TRADING
5.1 TRADING ACCOUNTS
1. The clients agree to open a trading account with the member broker.
2. The clients agree that the member broker may require the clients at
any time during the subsistence of the presents, to open one or more
trading accounts. The clients agrees that the debit/credit for all the
transactions may be effected in this/these accounts, or between such
accounts, in the manner deemed fit by the member broker.
3. The Clients agree that they shall place orders for the purchase of
securities in respect of delivery accounts where the securities to be
purchased are of a value that shall not, in aggregate exceed teh
advance paid by the clients into such trading account or the amount
in the bank account and such monies shall be blocked in favor of the

31
member broker by the bank, or the securities in the demat account
shall be blocked in favor of the member broker, as the case may be.
4. The clients agree that they shall place orders for the purchase of
securities in respect of margin trading, they shall be bound by the
rules in this regard that are made applicable to them by mention in
the terms and conditions on the web-site and as modified from time
to time.
5. The clients agree that they shall be required to make such margin
payments as are payable, as per the time schedule prescribed by the
member broker by mention on the terms and conditions, from time to
time. Such margin payments, if any, shall be payable in cash or
securities as specified by the member broker in the terms and
conditions or any section of the web-site and modified from time to
time. Provided that the securities, if any, accepted as margins, shall
be valued by the member broker as per the terms and conditions on
the web-site.
6. The Client authorizes member broker to pledge these securities with
exchange to meet margin/capital adequacy requirement of member
broker. He further authorizes the member broker to sell these
securities to recover any dues payable by him to member broker.
7. The clients agree that all payments due to the member broker will be
made within the specified time and in the event of any delay, the
member broker may refuse, at their discretion, to carry out
transactions on behalf of the clients. The clients agree that
alternatively, the member broker may, at their sole discretion, square
off such transactions and the costs/losses if any, thereof shall be
borne solely and completely by the clients.
8. The clients agree, that without prejudice to any other remedy or right
prescribed in the presents, the member broker may charge daily
interest at the rate of 2% per month for any delay in the payment
charges, margin or any other sum due to the member as may be
applicable.

5.2 BANK ACCOUNT


1. The clients agree that the member broker may, at any time during the
subsistence of any arrangement relating to the subject matter of the
presents, require the clients to open one or more accounts with a
designated bank. The clients agree that the debit/credit for all the
transactions may be effected in this/these accounts.
2. The clients agrees that member broker shall have the right, at any
time during the subsistence of this agreement, to give any
instructions to the banks with whom they have affiliations or any other
arrangement, in respect of the account of the clients maintained with
such bank. The clients agree that they shall have no cause of action
in respect of any instruction that may be given to the bank in respect

32
of their accounts maintained with such bank in pursuance of the
presents.
3. The clients agree that the member broker may, without assigning any
reason thereof, and without issuing any notice of the same to the
clients, reveal information available with the member broker in the
course of the arrangement with the clients, to the bank with whom
such clients maintain bank accounts pursuant to the presents, and
the clients shall have no remedy therefrom.
4. The clients shall agree that in the event that the designated bank
terminates the agreement with the clients in respect of the bank
account maintained by the clients with such designated bank, for any
reason or informs the member broker of any misdemeanor or
transgression by the clients in the operation of the account or in any
other circumstance resulting in the closure or in operation of the said
bank account with the designated bank, the member broker may, at
their discretion terminate services to the clients and the clients shall
have no remedy therefrom.
5. Notwithstanding anything contained in any other agreement or
arrangement, if any, between the parties hereto, the clients hereby
authorize the member broker to release all payments due to them
from the trading account maintained with the member broker, against
specific request in that behalf made in the manner and following the
procedure laid down in the terms and conditions. For the purposes of
this clause, any request made through or on the web-site shall be
sufficient for the member broker to execute an instruction.

5.3 DEMAT ACCOUNT


1. The clients agree to open, maintain and operate a valid demat
account with the designated depository participant.
2. The clients agree that the member broker may require the clients, at
any time during the subsistence of any arrangement relating to the
subject matter of the presents, to open one or more demat accounts.
The clients agree that the debit/credit for all the transactions are to be
effected in this/these accounts.

5.4 ORDERS
1. The clients agree that all the orders placed through the web-site shall
be forwarded by the system to the National Stock Exchange Limited,
as may be applicable, in respect of the arrangement between the
parties.
2. The clients agree that if, any circumstance or for any reason, the
market closes before the acceptance of the Order by the Exchange,
the Order may be rejected. The clients agree further, that the

33
member broker may reject Orders if the same are rejected by the
Stock Exchange for any reason. In case of rejection of an order due
to rejection by the Exchange, the clients agree that the order shall
remain declined and shall not be reprocessed in any event.
3. The member broker may, at their sole discretion, reject any order
placed on the web-site due to any reason, including but not limited to
the non-availability of funds in the trading account of the clients, non-
availability of securities in the Demat account of the clients with a
designated depository participant, insufficiency of margin amount if
the clients opts for margin trading, suspension of scrip-specific
trading activities by or on an Exchange and the applicability of circuit
breaker to a scrip in which orders are placed through the web-site.
4. The clients are aware that the member broker has provided on the
web-site, a facility for reconfirmation of orders, which are larger that
those specified by the member broker's risk management, and is also
aware that the member broker has the discretion to reject the
execution of such orders based on such risk perception.
5. The clients agree further that the member broker shall have the right
to reject any order placed by the clients for any reason and at any
time without notice to the clients. Provided that the order placed by
the clients can only be rejected by the member broker in the event of
impossibility, or pursuant to any of the terms mentioned in this
Agreement, circulars, rules, regulations, notifications, Bye-laws or
legislation of any regulatory authority, or pursuant to any
terms/arrangement between the clients and the member broker or
the clients and the depository participant, whether such arrangement
is executed prior to or during the subsistence of this Agreement.
6. The clients agree that, if the order is not accepted on the web-site for
any reason, the member broker shall have the right to treat the order
as having lapsed.
7. The clients agree that the member broker shall not be liable or
responsible for non-execution of orders placed through the web-site
due to the failure of any system or link or due to any other reason
whatsoever.
8. The member broker, may at their sole discretion permit clients to use
the web-site for the routing of their orders in respect of securities,
irrespective of the amount in the balance of the account of the clients.
9. The clients agree to abide with and be bound by all the Rules and
Circulars that the member broker may issue from time to time, and all
rules, regulations and bye-laws of the Exchange as are in force
pertaining to the transactions on their behalf carried out by the
member broker and the orders place by them on the web-site.
10. The member broker may inform the clients of the acceptance or
rejection of the order placed by the clients through the web-site, and
the reason therefor within the twenty four hours of the placing of such
order through the electronic mode at the e-mail id provided by the

34
clients while registering for the service on the web-site or as modified
thereafter.
11. The systems used by the member broker for providing Online
Trading services are generally capable of assessing the risk of the
clients as soon as the order comes in.
12. Any and all instructions issued by an authorized representative of the
clients shall be binding on the clients in accordance with the letter
authorizing the said representative to deal on behalf of the clients.
All authentication of the authority of a client to instruct the member
broker to deal on behalf the client shall be determined by the terms in
this regard mentioned on the web-site.

5.5 CLEARING AND SETTLEMENT


1. The Exchange may cancel a trade suo motu without assigning
any reason thereof. In the event of such cancellation the
member broker shall be entitled to cancel the relative contract or
contracts, if any, with the clients.
2. The member broker may directly credit the demat account of the
clients with the designated depository participant for the
purchase of the securities by the clients within forty eight hours
of the receipt of the securities from the exchange on the pay-out
day. Provided that if the order placed by the clients through the
web-site is for securities, which are in the no-delivery period,
such securities shall be credited to the trading account of the
clients only at the time of settlement of trades, as per the
schedule of the exchange. However,
(a) If any sum is due from the clients the member broker
may withhold the credit of securities to the said Demat
account of the clients with the designated depository
participant.
(b) Delivery arising from an order placed from the web-site
in respect of a margin trading account, may not be
credited to the demat account of the clients but will be
disposed of in a manner prescribed in the terms and
conditions.
3. Any sale delivery not made to the member broker at the time of
trade must be made at least forty-eight hours prior to the pay-
out date in respect of the settlement in which such purchase is
made. Losses, if any, that may accrue in the event of a default
in completing the delivery on the Exchange by the member
broker resultant of a delay in the delivery by the clients, shall be
borne solely and completely by the clients. Losses for the
purposes of this clause shall include auction debts, if any
incurred as a result of non-delivery of securities on the
settlement date on the exchange.

35
5.6 DEFAULT AND CONSEQUENCES THEREOF
1. The clients agree that they shall be deemed to have defaulted terms
of this agreement in circumstances including but not restricted to the following:
(a) Any delay in payment of margins, charges or delivery in respect of this
agreement for transactions executed on behalf of the clients;
(b) Any contravention of the terms contained in the presents;
(c) Any misrepresentation or false statement or omission, or misleading
information supplied by the clients to the member broker;
2. The member broker may terminate the services made available to
the clients at any time and without issuing any notice or assigning any reason
thereof.
3. In the event of a default of this agreement by a clients, the member
broker shall be entitled to any or all of the following courses of action:
a) Immediate termination of this agreement and provision of services in
terms of this agreement.
b) Other remedies as may be available in terms of the law for the time
being in force.
c) Arbitration in terms of this agreement.
d) Charge of an amount that shall not exceed the actual losses incurred
by the member broker consequent to the default along with the interest at market
rates.
5.7 LIEN
1. All the funds of the clients in the bank account shall be subject to lien
for the discharge of any or all payments due to the member broker from the
clients, or in respect of any other obligation that clients may have to the member
broker.
2. All securities in the demat account opened in terms of this
agreement with a designated depository participant, shall be subject to lien for
the discharge of any or all payments due to the member broker from the clients
or any other obligation that the clients may have to the member broker and may
be held by the member broker as a security against default by the clients in
respect of the services already availed of by the clients.
3. The enforcement of the lien aforementioned in clauses 5.7.1 and
5.7.2 shall be at the sole and complete discretion of the member broker and the
member broker alone may decide the securities to be sold, if any.
4. The clients authorizes the member broker to block securities against
pending order or pledge securities in favor of the member broker against any of
the dues. Provided that requirement may be waived y the member broker, at their
discretion, by suitable modification to the terms and conditions.

5.8 INVESTMENT ADVICE


1. The clients agree that the member broker shall not be required to
provide the clients with any form of legal, accounting or tax related advice.
36
2. The clients agree that none of the services available on the website
shall amount to investment advice on the part of the member broker.

5.9 MISCELLANEOUS
1. The clients agree that all decisions with regard to the amount that
may be placed as margin, the exposure available to the clients as against the
funds available in the bank account and the authorized trading limit shall be
decided by the member broker at their sole discretion and no reasons thereof are
required to be given to the clients.
2. The clients agree that that shall be bound by all or any changes or
modifications that are made to this agreement by the member broker, at its sole
and complete discretion.
3. The clients agree that a modification to the terms and conditions on
the website shall amount to a valid modification of the presents.
4. The clients agree that the member broker may at any time terminate
the services available on the website on the basis of which this agreement is
drawn and such termination of services for any reason shall not be in
contravention of the presents. In the event that such termination occurs the
member broker shall not be required to issue any notice to the clients or assign
any reasons thereafter.
5. The member broker shall issue contract notes in terms of the SEBI
(Stock Brokers and Sub Brokers) Rules and regulations, 1992 within twenty four
hours of the execution of the trade. Such contract note shall be dispatched by the
member broker by courier or through any other mode specified in the terms and
conditions mentioned on the website, at the address mentioned in this agreement
or at any other address expressly informed to the member broker by the clients.
6. The clients agree that all the transactions executed pursuant to an
order placed on the website shall be subject to the rules of the clearing house of
the exchange and that all trades shall be settled through such clearing house.
7. The clients agree to be bound by the guidelines, including the rules
pertaining to the adjustment of shortages in clients positions in securities
transacted on behalf of such clients, or any other person by the member broker,
wither through orders placed through the use of the Online Trading services of
the member broker or otherwise as may be issued by the member broker from
time to time.

5.10 MODIFICATIONS
1. All modifications to this Agreement shall be made solely at the
discretion of the member broker and shall be intimated to the clients by a suitable
modification to the terms and conditions or other applicable section on the
website.
2. The client agrees that a modification to the information in the terms
and conditions section on the website or any other applicable section and a
display of the modification for the duration of the applicability of such modification

37
to the circumstances of the clients, shall be sufficient notice to the Clients, to take
note of such modification.

5.11 ASSIGNMENTS
The client agrees that Karvy stock broking Limited may at any time during the
subsistence of the presents without requirement of issuing any notice to the
clients, assign, transfer or otherwise alienate, by executing an agreement or in
any other manner, all or any of their rights and /or obligations in terms of this
agreement to any person or entity including but not limited to their affiliates,
associates or sister companies.

6. TERMS OF CONSIDERATION
6.1 COMMISSIONS AND BROKERAGE
All commissions and charges leviable on transactions in securities pursuant to
orders placed on the website shall be payable at rates mentioned on the website
and as may be modified from time to time.

6.2 USER FEES


The clients agree that the member broker may charge User Fees for the use of
any other service including but not restricted to the Online Trading Services, at a
rate mentioned on the website and as may be modified from time to time.

6.3 DEPOSITORY CHARGES


The clients agree that the member broker may debit the demat account charges
payable to the depository participant to the trading account of the clients
maintained with the member broker.

6.4 OTHER CHARGES


The member broker may charge any other relevant charge in the manner
intimated on the website from time to time including but not limited to Trade
Commission, Service Tax, Turnover Charges, Tax Expenses incurred, Stamp
Duty, Margins etc. as applicable.

7. INDEMNITY
7.1 The member broker shall be indemnified by the client in case of any
action initiated against the member broker by the party not privy to this contract,
and it shall be the duty of the client to bear out of their funds, all costs, losses
and expenses which any such member broker may incur or may become liable to

38
pay, by reason of any event in the course of the use of the said services by the
client.
7.2 In the event of death or insolvency of the client or his otherwise
becoming incapable of receiving and paying for or delivering or transferring
securities which the client has ordered to be bought or sold, the member broker
may close out the transaction of the client and the client or his legal
representative shall be liable for any losses, costs and be entitled to any surplus
which may result therefrom.

8. FORCE MAJEURE
The member broker shall not be responsible for delay or default in the
performance of their obligations due to contingencies beyond their control, such
as fire, flood, civil commotion, earthquake, war, strikes, failure of the system,
failure of Internet links or government/regulatory actions.

9. TERM AND TERMINATION


9.1 Both parties shall be entitled to terminate this agreement at
will and without giving any reasons to the other party but not without giving a
notice in writing of not less than one month that shall be despatched to the
addresses mentioned in this agreement. However, such cancellation or
termination shall not have any effect on any transaction(s) executed prior to the
date of such notice of termination and the rights and obligations in respect of
such transactions shall continue to subsist in terms of this agreement, and/or the
terms and conditions as may be prescribed.
9.2 This Agreement shall become effective on the date first
written above, subject to Clause 8 above, and shall remain in full force until and
unless terminated.
9.3 In the event of any Governmental action or action from any
regulatory authorities debarring the member broker from carrying on business or
rendering it impossible to transact the business of broking or online trading, this
agreement shall stand terminated.
9.4 The rights and obligations of the Parties under this
Agreement which by their nature survive the termination of this Agreement shall
not be extinguished by the termination of this Agreement.

10. ARBITRATION
10.1 If any dispute arises between the Parties hereto during the subsistence of
this Agreement of thereafter, in connection with or related to the validity,
interpretation, implementation or alleged breach of any provision of this
Agreement, the dispute shall, as far as possible be settled with the help of the
officials of the exchange and if no such settlement is possible the parties hereby
agree to refer such dispute to arbitration in accordance with the rules, bye-laws

39
and regulations of the said stock exchange. The member broker and client
hereby agree that they shall co-operate with the exchange officials and provide
all relevant documents in their possession so as to expedite the settlement
through the arbitration process.
10.2 The member broker and the client hereby agree that they will assist and
co-operate with each other in ensuring faster settlement of any arbitration
proceedings arising out of the present agreement or from the provision of the
online trading services by the member broker and will accept arbitration awards
in respect thereof.

11. APPLICABILITY OF LAW


The provisions of this agreement shall always be subject to Government
notifications, any rules, regulations and guidelines issued by SEBI and the Stock
Exchange rules, regulations and Bye-laws that may be in force from time to time.

12. JURISDICTION
All trades, transactions and contracts are subject to the rules and regulations of
the exchange and depository and shall be deemed to be and shall take effect as
wholly made, entered into and be performed in the city of Hyderabad and the
parties to such trade shall be deemed to have submitted to the jurisdiction of the
Courts in Hyderabad for the purpose of giving effect to the provisions of the
Rules and regulations of the exchange and the bye-laws and business rules of
the depository.
Client
:_______________________________________________________
(First Holder Name)
Signature :
_______________________________________________________

Witness
By
:_______________________________________________________
Signature
:_______________________________________________________

Broker : KARVY STOCK BROKING LIMITED.


By :
Signature :
Title : DIRECTORY/AUTHORISED SIGNATORY
Witness :

40
PROFILE OF BROKING HOUSE IN THE STOCK MARKET

US The Karvy group was formed in 1983 at Hyderabad, India. Karvy ranks
among the top player in almost all the fields it operates. Karvy Computershare
Limited is India’s largest Registrar and Transfer Agent with a client base of nearly
500 blue chip corporate, managing over 2 crore accounts. Karvy Stock Brokers
Limited, member of National Stock Exchange of India and the Bombay Stock
Exchange, ranks among the top 5 stock brokers in India. With over 6,00,000
active accounts, it ranks among the top 5 Depositary Participant in India,
registered with NSDL and CDSL. Karvy Comtrade, Member of NCDEX and MCX
ranks among the top 3 commodity brokers in the country. Karvy Insurance
Brokers is registered as a Broker with IRDA and ranks among the top 5

41
insurance agent in the country. Registered with AMFI as a corporate Agent,
Karvy is also among the top Mutual Fund mobilizer with over Rs. 5,000 crores
under management. Karvy Realty Services, which started in 2006, has quickly
established itself as a broker who adds value, in the realty sector. Karvy Global
offers niche off shoring services to clients in the US.
Karvy has 575 offices over 375 locations across India and overseas at Dubai and
New York. Over 9,000 highly qualified people staff Karvy.

MEANS OF FINANCING

Financing a company through the sale of stock in a company is


known as equity financing. Alternatively, debt financing (for example issuing
bonds) can be done to avoid giving up shares of ownership of the company.
Unofficial financing known as trade financing usually provides the major part of a
company's working capital (day-to-day operational needs). Trade financing is
provided by vendors and suppliers who sell their products to the company at
short-term, unsecured credit terms, usually 30 days. Equity and debt financing
are usually used for longer-term investment projects such as investments in a
new factory or a new foreign market. Customer provided financing exists when a
customer pays for services before they are delivered, e.g. subscriptions and
insurance

MARKET SHARE ANALYSIS

 Security
 Bond
 Stock
♦ Common stocks
♦ Preferred stocks
 Share
 Mutual funds
 Par value v s. Market value
 Bullish v s. Bearish

OTHER BENEFITS OF INVESTING IN SHARES?

Because they can make big money on it. Compared to your investments in
fixed deposits in banks it makes more profits, but the bad news is that you are
also expected to bear the losses, if any.

42
 1) Possibility of high returns
 2) Easy liquidity
 3) Unbeatable tax benefits
 4) Income from dividends

SO HOW DOES ONE BUY SHARES?

There are basically two ways in which you can invest in shares:

 Purchase shares from the primary market (i.e. IPO's)


 Trade in the Secondary Market, i.e. Stock exchanges

WHO SELECTS THESE STOCKS?

They are selected by the Index committee.

Some of the criteria they follow include:

1) Market capitalization.
2) Liquidity.
3) Continuity.
4) Industry representation.
5) Listed history

COMPUTATION OF STOCK INDEX:

A stock market may either be a price index or a wealth index. In India


most of the indices are using wealth index for computation of stock market.

Company No. of Market PriceMarket cap Market PriceMarket cap


shares on (Rs.) on (Rs.)
09/02/06 18/02/06
TATA 10 20/- 200/- 30/- 300/-

INFOSYS 20 30/- 600/- 40/- 800/-

IBM 20 100/- 2000/- 150/- 3000/-

TOTAL 2800/- 4100/-


MARKET CAP

43
Face value=Rs.10/-
Base value=100/-

Index present value=(100*4100)/2800= 146.428

OTHER MARKET RUNNERS :-

KOTAK SECURITIES:

Kotak securities ltd is India leading stock broking house with a market share of
close to 9% as on 31 march 2007. kotak securities ltd has been the largest in
IPO distribution.
The company has a full fledged research division involved in macro economic
studies sect oral research and company specific equity research combined with a
strong and well networked sales force which helps deliver current and up to date
market information and news

Kotak securities ltd is also a depository participant with national securities


depository limited and central depository service limited .providing dual benefits

44
services where in the investor can use the brokerage services of the company for
executing the transactions and the depository service for settling them.

Kotak securities have 813 outlets servicing more than 315000 customers and a
coverage of 277 cities. Kotak securities com the online division of kotak
securities limited offers internet broking services and also online IPO and mutual
fund investment

A Kotak security limited manages assets around 2300 crores of assets under
management. The portfolio management service provides top class service
catering to the high end of the market. Portfolio management from kotak
securities comes as an answer to those who would like to grow from
exponentially on the crest of the stock market, with the backing of an expert.

Sharekhan, the retail broking arm of SSKI group and one of the largest stock
broking house in the country has won the prestigious awaaz consumer vote
awards 2005 for the most preferred stock broking brand in India, in the
investment advisors category

Share khan equity related services include trade execution on BSE,NSE


derivatives commodities depository services online trading and investment
advice ,.sharekhan online trading and investment site www.sharekhan.com was
launched in 2000 . Sharekhan Bag round network includes over 250 centers
across 123 cities in India and having around 120000 customers and equal
number of demat customers.

Sharekhan won the award by vote of customer around the country, as part of
India largest consumer study cover 7000 respondents 21 product and service
across 21 major cities. the study initiated by awaaz India first dedicated
consumer channel and member of the world wide CNBC network and ac Nielsen
45
org marg was aimed at understanding the brand preference of the consumer and
to decipher what are the most important loyalty criteria for the consumer in each
vertical

In order to select the award recipient spontaneous responses rather than


prompted responses were garnered with an intention to glean unbiased
preferences.

The reason behind the preferences for brands were unveiled by examines the
following:

• Tangible features of product /service


• Softer, intangible features like imagery, equity driving preference
• Tactical measures such as promotional /pricing schemes

The India Infoline group, comprising the holding company, India Infoline Limited
and its wholly-owned subsidiaries, straddle the entire financial services space
with offerings ranging from Equity research, Equities and derivatives trading,
Commodities trading, Portfolio Management Services, Mutual Funds, Life
Insurance, Fixed deposits, GoI bonds and other small savings instruments to
loan products and Investment banking. India Infoline also owns and manages the
websites http://www.indiainfoline.com/and http://www.5paisa.com/

The company has a network of 758 business locations (branches and sub-
brokers) spread across 346 cities and towns. It has more than 800,000
customers

India Infoline Limited is listed on both the leading stock exchanges in India, viz.
the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and
is also a member of both the exchanges. It is engaged in the businesses of
Equities broking, Wealth Advisory Services and Portfolio Management Services.
It offers broking services in the Cash and Derivatives segments of the NSE as
well as the Cash segment of the BSE. It is registered with NSDL as well as CDSL
as a depository participant, providing a one-stop solution for clients trading in the
equities market. It has recently launched its Investment banking and Institutional
Broking business.

46
Bonanza is a leading Financial Services & Brokerage House with acknowledged
industry Leadership in execution and clearing services on Exchange Traded
Derivatives and cash market products.

Key elements that place Bonanza amongst the leading Brokerage Houses and
make it the preferred service provider for value based financial services are:

• A Client-driven foundation and strategy committed to client-specific


investment needs and objectives.
• Integrated and innovative use of Technology enabling clients to trade
offline, online and Strategic tie-ups with latest technology partners to
facilitate trading access and direct processing across more than 900
Branches spread over 310 cities .
• Client-focused philosophy backed by memberships of all principal Indian
Stock and Commodity Exchanges makes Bonanza a preferred service
provider in the Industry for value based services.

Emkay offers futures trading through "Emkay Corporate Services (P) Ltd.". We
have membership with two of the major Commodity exchanges of the country.

 Multi Commodity Exchange of India Ltd, Mumbai (MCX)


 National Commodity and Derivative Exchange, Mumbai (NCDEX)

Large numbers across the country participate in the futures market through
Emkay's rapidly expanding online trading terminal network extending to even
remote areas. Local, national and international agri-information is disseminated
through the company's large branch network. Seminars, free in house literature
and interactive site sessions raise awareness levels on the futures market.

47
Consequently, large numbers of informed participants enter the trading process
resulting in increased volumes and market efficiency.

Motilal Oswal Securities Ltd. was founded in 1987 as a small sub-broking unit,
with just two people running the show. Focus on customer-first-attitude, ethical
and transparent business practices, respect for professionalism, research-based
value investing and implementation of cutting-edge technology has enabled us to
blossom into an almost 2000 member team.

Today they are a well diversified financial services firm offering a range of
financial products and services such as

• Wealth Management
• Broking & Distribution
• Commodity Broking
• Portfolio Management Services
• Institutional Equities
• Private Equity
• Investment Banking Services and
• Principal Strategies

They have a diversified client base that includes retail customers (including High
Net worth Individuals), mutual funds, foreign institutional investors, financial
institutions and corporate clients. They are headquartered in Mumbai and as of
June 30, 2008, had a network spread over 450 cities and towns comprising 1,496
Business Locations operated by their Business Partners and them. As at June
30, 2008, they had 486,648 registered customers.

48
Religare Enterprises Limited (REL), is one of the leading integrated financial
services groups of India. REL’s businesses are broadly clubbed across three key
verticals, the Retail, Institutional and Wealth spectrums, catering to a diverse and
wide base of clients.
REL offers a multitude of investment options and a diverse bouquet of financial
services and has a pan India reach in more than 1550 locations across more
than 460 cities and towns.
As part of its recent initiatives, the group has also started expanding globally and
has acquired London’s oldest brokerage & investment firm, Hichens, Harrison &
Co. plc. Following this acquisition Religare now proposes to operate out of 10
countries. With a view to expand, diversify and introduce offerings benchmarked
against global best practices, Religare has entered into joint ventures with the
global major- Aegon for its Asset Management and Life Insurance businesses in
India.
Religare’s wealth management subsidiary is now rechristened as Religare
Macquarie Wealth Management Limited, following a joint venture with the
Australia based financial services major, Macquarie Bank. Religare has also
partnered with Vistaar Entertainment to launch India’s first Film Fund.
The vision is to build Religare as a globally trusted brand in the financial services
domain and present it as the ‘Investment Gateway of India’. All employees of the
group guided by an experienced and professional management team are
committed to providing financial care, backed by the core values of diligence and
transparency.

ABOUT INDIABULLS

Indiabulls is India’s leading Financial Services and Real Estate company having
over 640 branches all over India. Indiabulls serves the financial needs of more
than 4,50,000 customers with its wide range of financial services and products
from securities, derivatives trading, depositary services, research & advisory

49
services, consumer secured & unsecured credit, loan against shares and
mortgage & housing finance. With around 4000 Relationship Managers,
Indiabulls helps its clients to satisfy their customized financial goals. Indiabulls
through its group companies has entered Indian Real Estate business in 2005. It
is currently evaluating several large-scale projects worth several hundred million
dollars.

“Indiabulls Financial Services Ltd is listed on the National Stock Exchange,


Bombay Stock Exchange and Luxembourg Stock Exchange. The market
capitalization of Indiabulls is around USD 6,300 million (31st December, 2007).
Consolidated net worth of the group is around USD 905 million (31st December,
2007). Indiabulls and its group companies have attracted more than USD 800
million of equity capital in Foreign Direct Investment (FDI) since March 2000.
Some of the large shareholders of Indiabulls are the largest financial institutions
of the world such as Fidelity Funds, Goldman Sachs, Merrill Lynch, Morgan
Stanley and Farallon Capital.

Business of the company has grown in leaps and bounds since its inception.
Revenue of the company grew at a CAGR of 159% from FY03 to FY07. During
the same period, profits of the company grew at a CAGR of 184%.

Indiabulls became the first company to bring FDI in Indian Real Estate through a
JV with Farallon Capital Management LLC, a respected US based investment
firm. Indiabulls has demonstrated deep understanding and commitment to Indian
Real Estate market by winning competitive bids for landmark properties in
Mumbai and Delhi.”
Indiabulls Financial Services Ltd

AnandRathi is a leading full service securities firm providing the entire gamut of
financial services. The firm, founded in 1994 by Mr. AnandRathi, today has a pan
India presence as well as an international presence through offices in Dubai and
Bangkok. AR provides a breadth of financial and advisory services including
wealth management, investment banking, corporate advisory, brokerage &
distribution of equities, commodities, mutual funds and insurance, structured
products - all of which are supported by powerful research teams.

50
The firm's philosophy is entirely client centric, with a clear focus on providing long
term value addition to clients, while maintaining the highest standards of
excellence, ethics and professionalism. The entire firm activities are divided
across distinct client groups: Individuals, Private Clients, Corporate and
Institutions and was recently ranked by Asia Money 2006 poll amongst South
Asia's top 5 wealth managers for the ultra-rich.
In year 2007 Citigroup Venture Capital International joined the group as a
financial partner

The Hem Group is one of the


largest broking network in india. It provides trading platform in all the leading
exchanges namely – BSE, NSE, MCX & NCDEX.

GROUP COMPANIES
HEM SECURITIES LTD. - MEMBER (BSE,CDSL) & CATEGORY 1 MERCHANT
BANKER
HEM FINLEASE PVT. LTD. - MEMBER (NSE)
HEM MULTICOMMODITIES PVT. LTD. - MEMBER (MCX, NCDEX)
HEM FINANCIAL SERVICES LTD. - NBFC REGISTERED WITH RBI
RAJMALA FINLEASE PVT. LTD. - MEMBER (BSE)

Achieving excellence through superior services


 More than 28 years of rich experience

 One of the largest broking network in the country covering 16 states with more
than 325 outlets

 More than 28 years of rich experience

 One of the largest broking network in the country covering 16 states with more
than 325 outlets

 Leading IPO and MF Distributor Pan-India

51
 One of the Biggest Depository Participant with CDSL

 Dedicated In-house Research Department

 Robust & Hi-tech Trading Platform

 Ethical & Transparent Business Practices


Featured in India’s Leading Equity Broking Houses 2008 by Dun & Bradstreet
At Hem, what clients find best and advantageous is its warehouse of knowledge
and research in equities and commodities, which of course adds to their amours
in making investment decisions.

Real strength of HEM has been the faith and confidence of its clients in its
organizational commitment and performance.

This faith and confidence, of numerous investors have been gained through
transparent & highly reliable financial services over the last 27 years period.

Apart from faith and confidence of clients, its own sound net-worth has been the
other important business assets at the HEM GROUP

The Angel Group of Companies was brought to life by Mr. Dinesh Thakkar. He
ventured into stock trading with an intention to raise capital for his own
independent enterprise. However, he recognised the opportunity offered by the
stock market to serve individual investors. Thus India’s first retail-focused stock-
broking house was established in 1987. Under his leadership, Angel became the
first broking house to embrace new technology for faster, more effective and
affordable services to retail investors.

Mr. Thakkar is valued for his understanding of the economy and the stock-
market. The print and electronic media often seek his views on the market trend
as well as investment strategies.

52
Angel Broking's tryst with excellence in customer relations began in 1987. Today,
Angel has emerged as one of the most respected Stock-Broking and Wealth
Management Companies in India. With its unique retail-focused stock trading
business model, Angel is committed to providing ‘Real Value for Money’ to all its
clients.

The Angel Group is a member of the Bombay Stock Exchange (BSE), National
Stock Exchange (NSE) and the two leading Commodity Exchanges in the
country: NCDEX & MCX. Angel is also registered as a Depository Participant
with CDSL.

Introduction of Organization

About Karvy Fortune:-


Karvy Fortune a business opportunity for individuals in
similar business from Karvy, it gives the opportunity to associate with “Karvy
Family” as Franchisee, Remisser, or as an Independent Financial Advisors.

Karvy ranks among 5 stock brokers and Depositary


Participants in India, with the enormous net work of over 500+ branches in 375
locations across India and overseas at Dubai, executes 150,000+ trades in
NSE/BSE per day. Karvy has a top notch research team, advisory team,
technology support team to serve it’s customers in 24/7 manner

Associate with Karvy Fortune, a correlate opportunity


from India’s foremost financial services provider, Karvy Stock Broking Ltd. It
offers complete Karvy’s spectrum of financial products. Karvy fortune gives the
opportunity to associate with “Karvy Family” as Franchisee, Remisser or as an
Independent Financial Advisors please enroll your details.

Remisser of Karvy stock Broking Ltd.

Karvy is an established stock broking firm with a strong customer base all over
India, Karvy would like to reach out to more investors across the country, building
a good distribution channel through Business Partner/Associates

Who is Business Partner/Associate?

53
Karvy is looking for like-minded people who wish to serve the customers with
utmost reliability and fervor. As a Business Associate of Karvy, you will actively
promote and market our services and products and keep our customers updated
of the forthcoming new products and schemes. Karvy offers you to join our family
as Franchisee/Business partners, Remisser or as an Independent Financial
Advisor.

Karvy is associated with gamut of financial services and products. As we offer


one stop investment solution, customers will have the option of deciding the right
investment products of their choice.

KARVY FRANCHISEE PLANS :

BUSINESS ASSOCIATES

Revenue Sharing Structure:

Eligibility Criteria to enter into a Relationship as a Business


Associate:

1. An individual/ company/ partnership firm with good track record & reputation in
financial services/other business/social circles with a good client base.

2. Sub-broker registration in SEBI/Exchanges through KSBL is compulsory with


out which the remittance of accrued brokerage to franchisee will be kept on hold
till registration is complete

3. Capacity to invest in setting up & maintaining the infrastructure & manpower


required for carrying on the business as specified below at their own expense.

a. Own or leased premises with requisite power supply and support


facilities
including LAN duly approved by KSBL in writing;
b. Interior work, furniture and Name Board conforming to the design,
colours and
standards approved by KSBL
c. Connectivity and communication facilities including leased line, ISDN
line,
telephone line etc duly approved by KSBL.

54
d. In case the connectivity is through VSAT, the full cost of the VSAT
including
setting up costs.
e. Legally licensed operating system, database and other software
including back
office software required for the operations at franchisee’s premises;
f. Any other equipment or installations necessary for carrying on the
business
without interruption.

4. The sub-broker/ employees of corporate/firm should hold valid NCFM


certificates for Cash, F&O and ensure that NCFM certificate holder in person has
to sit on trading terminals in whose name the terminal ID has been generated.
Signature of Marketing Manager Signature of Business Associate

Franchisee Package Offered by KARVY

1. Product Support: Broking through BSE (Cash & F&O), NSE (Cash & F&O)
,DP services through NSDL, CDSL.

2. Sales Support: A Relationship Manager will be assigned to you for regular


Research advice & Market Updates through Chat/Phone/Emails/Personal
meetings.

3. Business Development: Product research, marketing & business


development support on a regular basis to encourage knowledge based selling.

4. Back Office Support: Centralized Web based back office support through a
dedicated Customer Service Executive assigned to you for routine queries
through Chat-Phone- Emails. All stationary items bills, letter heads will be
provided by KSBL and digital contract notes will be delivered to the franchisee’s
id as per charges applicable.

5. Setup Support: Initial Glow sign flex material & Initial Visiting Cards will be
provided by KSBL as per charges applicable.

Commercial Terms & Conditions:-

1. Refundable Deposits for each outlet: Total INR 3, 00,000/-


a. INR 3, 00,000/- with KSBL (Equities)

2. Charges Details: - Per Outlet Connectivity Charges


Two options for Connectivity:-

55
a. V SAT: - VSAT One time Cost: - Rs. 110000/-
(Including Site visit and Installation)
Monthly Recurring Charges for Back office and Bandwidth: - Rs. 7500/-
P.M.

OR

b. Broadband: - On broadband the Connectivity and Back office Charges


will be Rs. 5000 per month for each outlet.

3. Revenue Sharing:

BROKERAGE SHARING RATIO (EQUITY)


KSBL: 40%
BUSINESS PARTNER: 60%

4. Minimum Brokerage to be charged to end clients:


Segment Type Brokerage Rate Applicable
Cash Segment (BSE & NSE) Trading 0.04% On Turnover
Derivative Segment ( F&O & Commodities) Trading 0.04% On Turnover
Cash Segment (BSE & NSE) Delivery 0.40%

Other Terms & Conditions:

1. Taxes: Securities Transaction Tax and other exchange charges & taxes as
applicable will be levied.

2. Payment Terms:
a. Payment delayed by 3 days will be charged @ 18% for both cash &
F&O segment. However any further delay, the amount will be debited
to SUBBROKER.

b. The Brokerage accrued will be returned to the SUBBROKER on a


monthly basis subject to receipt of audit report.

c. The franchisee has to ensure that for payments, the sub-broker code is
stamped prominently in the box indicating Sub-broker / Sub-agent
Codes on all application forms (for MF/IPO) that are used by them.

3. Exclusivity: As a Business Associate of KSBL you are required to sell all the
products promoted by the company which includes IPO, MF, PMS, etc.
exclusively for KSBL
.

56
4. Change in sub brokerage: The above rates of sub-brokerage payable to the
sub broker are subject to modification from time to time to be mutually agreed
between KSBL and the franchisee.

5. Certifications: Sub broker and his/her employees have to clear NCFM


examination (Cash, AMFI & Derivatives) Signature of Marketing Manager
Signature of Business Associate

REMISSERS

Eligibility Criteria to enter into a Relationship as a


Business
Associate (Remisser):

1. An individual/ company/ partnership firm with good track record & reputation in
financial services/other business/social circles with a good client base.

2. Sub-broker registration in SEBI/Exchanges through KSBL is compulsory with


out which the remittance of accrued brokerage to remisser will be kept on hold till
registration is complete.

3. The sub-broker/ employees of corporate/firm should hold valid NCFM


certificates for Cash, F&O and Commodity segments and ensure that NCFM
certificate holder in person has to sit on trading terminals in whose name the
terminal ID has been generated.

Business Partner Package Offered by KARVY


1. Product Support: Broking through BSE (Cash & F&O), NSE (Cash & F&O),
DP services through NSDL, CDSL.

2. Sales Support: A Relationship Manager will be assigned to you for regular


Research advice & Market Updates through Chat/Phone/Emails/Personal
meetings.

57
3. Business Development: Product research, marketing & business
development support on a regular basis to encourage knowledge based selling.

4. Back Office Support: Centralized Web based back office support through a
dedicated Customer Service Executive assigned to you for routine queries
through Chat-Phone- Emails. All stationary items bills, letter heads will be
provided by KSBL and digital contract notes will be delivered to the remisser id
as per charges applicable.

5. Setup Support: Initial Glow sign flex material & Initial Visiting Cards will be
provided by
KSBL as per charges applicable.

Commercial Terms & Conditions:-

1. Refundable Deposits : Total INR 50,000/-


a. INR 50,000/- with KSBL (Equities)

2. Revenue Sharing:
BROKERAGE SHARING RATIO (EQUITY)
KSBL: 60%
BUSINESS PARTNER: 40%

3. Minimum Brokerage to be charged to end clients:


Segment Type Brokerage Rate Applicable
Cash Segment (BSE & NSE) Trading 0.04% On Turnover
Derivative Segment ( F&O & Commodities) Trading 0.04% On Turnover
Cash Segment (BSE & NSE) Delivery 0.40%

Other Terms & Conditions:


1. Taxes: Securities Transaction Tax and other exchange charges & taxes as
applicable will be leived.

2. Payment Terms:

a. Payment delayed by 3 days will be charged @ 18% for both cash & F&O
segment. However any further delay, the amount will be debited to SUBBROKER

b. The Brokerage accrued will be returned to the SUBBROKER on a monthly


basis subject to receipt of audit report.

c. There will be no sharing of brokerage in proprietor/partner/directors trading


account with Karvy.

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3. Exclusivity: As a Business Associate of KSBL you are required to sell all the
products
promoted by the company which includes IPO, MF, PMS, etc. exclusively for
KSBL.

4. Change in sub brokerage: The above rates of sub-brokerage payable to the


sub broker re subject to modification from time to time to be mutually agreed
between KSBL and the Remissers.

5. Certifications: Sub broker and his/her employees have to clear NCFM


examination Cash & Derivatives

TIN – FC

Eligibility Criteria to enter into a Relationship as TIN Facilitation


Centre with Karvy Data Management Services Limited.

1. An individual/ company/ partnership firm with good track record & reputation in
financial services/other business/social circles.

2. Capacity to invest in setting up & maintaining the infrastructure & manpower


required for carrying on the business as specified below at their own expense.
a. Own or leased premises with requisite power supply and support
facilities including LAN duly approved by KDMSL in writing.
b. Interior work, furniture and Name Board conforming to the design,
colours and standards approved by KDMSL
c. Connectivity and communication facilities including leased line, ISDN
line, telephone line etc duly approved by KDMSL
d. Legally licensed operating system, database and other software
required for the operations at second party’s premises.
f. Any other equipment or installations necessary for carrying on the
business without interruption.

Support given by Karvy Fortune to setup TIN Facilitation


Centre

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1. Product Support
2. Back Office Support
3. Setup Support: Initial Glow sign flex material & Initial Visiting Cards will be
provided by KDMSL as per charges applicable.

2. Charges Details:-

A) One time registration cost INR 2,000/- (Indian Rupees Two thousand only)
B) Monthly Recurring Charges for Back office and Bandwidth: - Rs. 500/- P.M.
C) For additional User ID (Optional) Rs.500/- per Id /per month

RESEARCH METHODOLOGY AND LIMITATION


Title of Study:-

“Franchisee & Remiseship Development in Karvy”

Duration of Project:-

26-05-2009 to 04-07-2009

Objective of the research project

• To explore the franchisee of Karvy in Delhi region


• To comparatively learn the franchisee plans of Karvy.
• To find out the strengths of the Franchisees plan.
• To find out weaknesses of the Franchisees plan.
• To entice the other market existing franchisee to select Karvy plan.
• To make the people move aware about market.
• To suggest the possible amendment to the plan of Karvy.

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Type of Research Plan
RESEARCH DESIGN

Problem is complex and real in nature, lot of efforts have undergone for the
research by meeting various people and asking them about their experience
.various people have undergone huge losses in the stock market lot of material
has been collected from the internet.

The research methodology consisted following steps:

1. DEFINING THE OBJECTIVES:

The aim of this project as has already been mentioned was to “building new
business associates and bringing potenital customers and giving guidance to the
customers who are already being working in the market and moreover checking
out the problem (if any) being faced by business associates.” For this our
research contains two parts-

a. To sale the products we have to first generate database on the basis of


marketing research.
b. Analysis of different schemes of share market.

2. DEVELOPING THE RESEARCH PLAN:

This step called for decision on the data sources, sampling plan and contact
methods.

 DATA SOURCES

Data was collected from primary and secondary data. The various sources are:

i. PRIMARY DATA

This type of data does not exist; it is originated by primary sources like personal
interaction or field back forms, questionnaires that act as tools for collecting data.

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ii. SECONDARY DATA

This type of data already exists, and used to generate information as required.
We collect the secondary data through Internet, books, journals and magazines
of the company, various company broachers, talking with people.

 RESEARCH APPROACH

The research approach adopted here was the survey method. But other
approaches also used such as observation research.

3. COLLECTING THE INFORMATION

With respect to primary and secondary data, the information is collected. Primary
data tells us present scenario of financial market. Secondary data means that to
get the data from the internet, company magazines, talking with people and
convince.

DATA COLLECTION:
Base on the above questionnaire data are collected by survey methods.

1. SAMPLING METHOD:

 The sampling method, which is adopted, is Random Sampling.

2. DATA ANALYSIS:

 The Analysis of survey has been done on % basis.

DATA COLLECTION
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PRIMARY DATA

The primary data to be selected was based upon the response of the
respondents to the questionnaire designed. The questionnaire designed was
given to us from our immediate boss... The questionnaire consists of closed
ended questions.

A part of Questionnaire was targeted to know the personal details of the


respondents. Another part comprised of the self-designed questionnaire and will
consist of closed ended questions with every question having its own importance
and meaning.

SECONDARY DATA

The secondary data was collected by referring through web sites, and the final
data was analyzed systematically to achieve the desired result.

DATA ANALYSIS

For analyzing the data obtained after conducting the survey, percentage method
was used. All the views and data obtained were also interpreted as clearly as
possible.

 STUDY

The present investigation is a descriptive and marketing type of study undertaken


to estimate the comparative study of share market analysis. The present study
identifies views of customers & analysis of share market along with the self-
analysis.

 SAMPLE SIZE

For the purpose of analysis a sample size of respondents was selected. The
target group of the respondent was job holders and an earning person whatever
his/her age may be. The sample size taken was 60.

 SAMPLING METHOD

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The sampling method chosen for the project was “Random Sampling”. This type
of sampling is also known as chance sampling or probability sampling where
each and every item in the population has an equal chance of inclusion in the
sample and each one of the possible samples. This procedure gives each item
an equal probability of being selected.

COMPARATIVE ANALYSIS AND INTERPRETATIONS

ANALYSIS OF MALES AND FEMALES SURVEYED:

BRIEF ANALYSIS

The diagram helped us in judging the number and percentage of males and
females after conducting the survey; it was found that out of customers were
males and was females. Thus, we came to know that 73% of the users were
males and the remaining 27% were females.

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80
70
60
50
40 Male
30 Female

20
10
0
1st Qtr

LIMITATION OF STUDY
1. lot of efforts have been undergone to improve the predication

techniques .like earlier there was only fundamental analysis being used

but now technical analysis has come into existence

2. Once the people who are involved in it. They play it like gambling and they

think that its same it is difficult to change their mindset.

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3. It’s difficult to make people aware about the market knowledge it is very

vast.

4. Last of technical thing are involved in it difficult for everyone to go through

it.

CONCLUSION :
FINDINGS :

Our findings during the training with Karvy Stock Broking Limited, Delhi

Company’s Plan was good on the following ground:

* Karvy is a top-ranked company listed with NSDL and CDSL, provide trading
through both NSE & BSE.

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* Karvy is providing software to their prospective sub broker and Remissers.

* Cheque updating in 15 mins. And the credit limit up to 10 times.

* Good alternative plan (Remissers) to get a new connection with a renowned


company.

* Bunch of services like: -


1) Product support
2) Back Office support
3) Set Up support
4) Sales support
5) Business Development

Recommendation and SUGGESTIONS:

Though the Karvy Stock Broking Limited have a very good ascribed plan with
exclusive band of opportunities but as nothing is free from the hurdles therefore
there are few shortcomings which I felt makes Karvy fail to achieve its target of
activating new Franchisee in the Jaipur region these pitfalls are as follows :-

1) The Brokerage charges, 4 paisa and 40 paisa for intraday and delivery
respectively, are quiet high.

2) The initial investment for the sub broker ship (4 lakhs) is also high.

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3) The percentage of sharing of brokerage which are
Sub broker ship: 60:40(sub: kar)
Remissers : 40:60(rem: kar)
Should be negotiable up to some extent. Our suggestion (50:50) for Remissers
and (70:30) for sub brokers hip.

4) The tentative norm regarding the location of the offices i.e. no other
Franchisee will be their under the 3 km area of already existing Franchisee.

5)The bound for the prospective client regarding TIN FC that is those who are
interested in taking TIN FC they must also take the equity as well.

QUESTIONAIRE
Sub Broker
Main Broker
Address

Contact No E-mail

1) Since how long have you been in stock industry? Office Space……

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2) Trading facility to end-clients: on-line / Off-line / Both

3) Do you require brand name to develop your business?


Highly agreed /Agreed /Not required

4) What are the products you can offer to clients.

Equity / Commodity / MF / Life & Non-Life Insurance of all companies


5) What Support you require from your broker to promote the business & what
are the key strengths of your broker?

a) ___________________________________________________________
________

b) ___________________________________________________________
________

6) What are the problems you are facing with present broker?

a) ___________________________________________________________
________

b) ___________________________________________________________
________

7) Do you require a regular & consistent source of new client acquisition & new
database, which is the key of success of broking business?

8) Do you think IPO & PAN card processing can be a potential product for your
earning & acquiring new database?

9) Do you require alternative & consistent earning source through the channel of
TIN-FC of Income tax Dept. of Govt. of India?

10) Do you want more details about TIN Facilitation Center? PAN, TAN & E-TDS
Processing)

YES/NO

Thank You

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BIBLIOGRAPHY:-
Websites:

 www.karvy.com
 www.indiacorporateadvisor.com
 www.dewb-vc.com
 www.amfiindia.com
 www.themanagementor.com
 www.nsdl.co.in
 www.wikipedia.com

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 www.sharekhan.com
 www.religare.com
 www.indiabulls.com
 Indiainfoline.com

Books & newspaper:-


 Economic times
 Financial management (khan and jain)
 Capital market

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