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INDUSTRY PROFILE

History of Stock Broking

The history of stock brokers can be traced back to the origins of the first stock
exchange in 1602 at Amsterdam. Even before that brokers are said to have existed in France
dealing with government securities. The Amsterdam Stock Exchange was involved in buying
and selling of shares for the Dutch East India Company.

However, the first real stock exchange came up in Philadelphia in the United States
during the late 18th century. Later it was the New York stock exchange which saw a rise in
its popularity. Wall Street, as it was called, became the hub of brokerage activities. Earlier
stock brokers were largely unorganized, but later most of them joined hands to form institutes
and organizations.

Till the 1980's stock broking services were used only by the wealthy class who could
afford them. Later with the advent of the Internet, stock broking became very easy. Thus, the
price tag on stock brokers lowered considerably and their services became available even to
the common man.

The stock broking duties are now mostly taken up by major organizations with the
smaller companies being absorbed by them. In India, too with increasing globalization the
major corporations are penetrating deeper into the society.

History of Stock Exchanges in India:

Stock markets refer to a market place where investors can buy and sell stocks. The
price at which each buying and selling transaction takes is determined by the market forces
(i.e. demand and supply for a particular stock).

Let us take an example for a better understanding of how market forces determine
stock prices. ABC Co. Ltd. enjoys high investor confidence and there is an anticipation of an
upward movement in its stock price. More and more people would want to buy this stock (i.e.
high demand) and very few people will want to sell this stock at current market price (i.e. less
supply). Therefore, buyers will have to bid a higher price for this stock to match the ask price
from the seller which will increase the stock price of ABC Co. Ltd. On the contrary, if there
are more sellers than buyers (i.e. high supply and low demand) for the stock of ABC Co. Ltd.
in the market, its price will fall down.

In earlier times, buyers and sellers used to assemble at stock exchanges to make a
transaction but now with the dawn of IT, most of the operations are done electronically and
the stock markets have become almost paperless. Now investors don’t have to gather at the
Exchanges, and can trade freely from their home or office over the phone or through Internet.

History of the Indian Stock Market - The Origin

One of the oldest stock markets in Asia, the Indian Stock Markets has a 200 years old history.

Year 1800 : East India Company was the dominant institution and by end of the
century, business in its loan securities gained full momentum.

Year 1830 : Business on corporate stocks and shares in Bank and Cotton presses
started in Bombay. Trading list by the end of 1839 got broader

Year 1840 : Recognition from banks and merchants to about half a dozen brokers

Year 1850 : Rapid development of commercial enterprise saw brokerage business


attracting more people into the business

Year 1860 : The number of brokers increased to 60

Year 1860-61 : The American Civil War broke out which caused a stoppage of cotton
supply from United States of America; marking the beginning of the
"Share Mania" in India

Year 1862-63 : The number of brokers increased to about 200 to 250

Year 1865 : A disastrous slump began at the end of the American Civil War (as an
example, Bank of Bombay Share which had touched Rs. 2850 could
only be sold at Rs. 87)

Pre-Independence Scenario - Establishment of Different Stock Exchanges

Year 1874 : With the rapidly developing share trading business, brokers used to
gather at astreet (now well known as "Dalal Street") for the purpose of
transacting business.

Year 1875 : "The Native Share and Stock Brokers' Association" (also known as
"The Bombay Stock Exchange") was established in Bombay

Year 1880 : Development of cotton mills industry and set up of many others

Year 1894 : Establishment of "The Ahmedabad Share and Stock Brokers'


Association"

Year 1900 : Sharp increase in share prices of jute industries in 1870's was followed
by a boom in tea stocks and coal
Year 1908 : "The Calcutta Stock Exchange Association" was formed.

Year 1920 : Madras witnessed boom and business at "The Madras Stock
Exchange"
was transacted with 100 brokers.
Year 1923 : When recession followed, number of brokers came down to 3 and the
Exchange was closed down

Year 1934 : Establishment of the Lahore Stock Exchange.

Year 1936 : Merger of the Lahore Stock Exchange with the Punjab Stock
Exchange.

Year 1937 : Re-organization and set up of the Madras Stock Exchange Limited
(Pvt.)
Limited led by improvement in stock market activities in South India
with establishment of new textile mills and plantation companies.

Year 1940 : Uttar Pradesh Stock Exchange Limited and Nagpur Stock Exchange
Limited was established

Year 1944 : Establishment of "The Hyderabad Stock Exchange Limited"

Year 1947 : "Delhi Stock and Share Brokers' Association Limited" and "The Delhi
Stocks and Shares Exchange Limited" were established and later on
merged into "The Delhi Stock Exchange Association Limited"

Post Independence Scenario

The depression witnessed after the Independence led to closure of a lot of exchanges
in the country. Lahore Stock Exchange was closed down after the partition of India, and later
on merged with the Delhi Stock Exchange. Bangalore Stock Exchange Limited was
registered in 1957 and got recognition only by 1963. Most of the other Exchanges were in a
miserable state till 1957 when they applied for recognition under Securities Contracts
(Regulations) Act, 1956. The Exchanges that were recognized under the Act were:
• Bombay

• Calcutta

• Madras

• Ahmedabad

• Delhi

• Hyderabad

• Bangalore

• Indore

Many more stock exchanges were established during 1980's, namely:

• Cochin Stock Exchange (1980)

• Uttar Pradesh Stock Exchange Association Limited (at Kanpur, 1982)

• Pune Stock Exchange Limited (1982)

• Ludhiana Stock Exchange Association Limited (1983)

• Gauhati Stock Exchange Limited (1984)

• Kanara Stock Exchange Limited (at Mangalore, 1985)

• Magadh Stock Exchange Association (at Patna, 1986)

• Jaipur Stock Exchange Limited (1989)

• Bhubaneswar Stock Exchange Association Limited (1989)

• Saurashtra Kutch Stock Exchange Limited (at Rajkot, 1989)

• Vadodara Stock Exchange Limited (at Baroda, 1990)

• Coimbatore Stock Exchange

• Meerut Stock Exchange

At present, there are twenty one recognized stock exchanges in India which does not
include the Over The Counter Exchange of India Limited (OTCEI) and the National Stock
Exchange of India Limited (NSEIL).
Government policies during 1980's also played a vital role in the development of the
Indian Stock Markets. There was a sharp increase in number of Exchanges, listed companies
as well as their capital, which is visible from the following table:

Indian Stock Exchange


Growth

1946 1961 1971 1975 1980 1985 1991 1995

No. of Stock Exchanges 7 7 8 8 9 14 20 22

No. of Listed Cos. 1125 1203 1599 1552 2265 4344 6229 8593

No. of Stock Issues of Listed


Cos. 1506 2111 2838 3230 3697 6174 8967 11784

Capital of Listed Cos. (Cr. Rs.) 270 753 1812 2614 3973 9723 32041 59583

Trading Pattern of the Indian Stock Market

Indian Stock Exchanges allow trading of securities of only those public limited companies
that are listed on the Exchange(s). They are divided into two categories:
Types of Transactions

Transaction on Indian Stock Exchange

The flowchart below describes the types of transactions that can be carried out on the
Indian stock exchanges:

Indian stock exchange allows a member broker to perform following activities:

• Act as an agent,

• Buy and sell securities for his clients and charge commission for the same,

• Act as a trader or dealer as a principal,


• Buy and sell securities on his own account and risk.

Over The Counter Exchange of India (OTCEI)

Traditionally, trading in Stock Exchanges in India followed a conventional style


where people used to gather at the Exchange and bids and offers were made by open outcry.

This age-old trading mechanism in the Indian stock markets used to create many
functional inefficiencies. Lack of liquidity and transparency, long settlement periods and
benami transactions are a few examples that adversely affected investors. In order to
overcome these inefficiencies, OTCEI was incorporated in 1990 under the Companies Act
1956. OTCEI is the first screen based nationwide stock exchange in India created by Unit
Trust of India, Industrial Credit and Investment Corporation of India, Industrial Development
Bank of India, SBI Capital Markets, Industrial Finance Corporation of India, General
Insurance Corporation and its subsidiaries and CanBank Financial Services.

Securities Traded on the OTCEI

Initiated Debentures

• An equity holding a minimum of 1 Lakh Debentures of a particular scrip can offer them
for trading on the OTC

Permitted Securities

• Certain Securities (Shares and Debentures) listed on other Exchanges

• Units of Mutual Fund can be Traded

Listed Securities

• Securities of the companies listed on the OTC

• Can be bought and sold at any OTC Center across India


• Should not be listed anywhere else

Advantages of OTCEI

• Greater liquidity and lesser risk of intermediary charges due to widely spread trading
mechanism across India

• The screen-based scripless trading ensures transparency and accuracy of prices

• Faster settlement and transfer process as compared to other exchanges

• Shorter allotment procedure (in case of a new issue) than other exchanges

National Stock Exchange

In order to lift the Indian stock market trading system on par with the international
standards. On the basis of the recommendations of high powered Pherwani Committee, the
National Stock Exchange was incorporated in 1992 by Industrial Development Bank of India,
Industrial Credit and Investment Corporation of India, Industrial Finance Corporation of
India, all Insurance Corporations, selected commercial banks and others.

NSE provides exposure to investors in two types of markets, namely


• Wholesale debt market

• Capital market

Wholesale Debt Market- Similar to money market operations, debt market operations
involve institutional investors and corporate bodies entering into transactions of high value in
financial instruments like treasury bills, government securities, commercial papers etc.

Trading at NSE

• Fully automated screen-based trading mechanism

• Strictly follows the principle of an order-driven market

• Trading members are linked through a communication network

• This network allows them to execute trade from their offices

• The prices at which the buyer and seller are willing to transact will appear on the
screen

• When the prices match the transaction will be completed

• A confirmation slip will be printed at the office of the trading member

Advantages of trading at NSE

• Integrated network for trading in stock market of India

• Fully automated screen based system that provides higher degree of transparency

• Investors can transact from any part of the country at uniform prices

• Greater functional efficiency supported by totally computerized network

Bombay Stock Exchange

Bombay Stock Exchange is the oldest stock exchange in Asia with a rich heritage,
now spanning three centuries in its 133 years of existence. What is now popularly known as
BSE was established as "The Native Share & Stock Brokers' Association" in 1875.

BSE is the first stock exchange in the country which obtained permanent recognition
(in 1956) from the Government of India under the Securities Contracts (Regulation) Act
1956. BSE's pivotal and pre-eminent role in the development of the Indian capital market is
widely recognized. It migrated from the open outcry system to an online screen-based order
driven trading system in 1995. Earlier an Association Of Persons (AOP), BSE is now a
corporatised and demutualised entity incorporated under the provisions of the Companies
Act, 1956, pursuant to the BSE (Corporatisation and Demutualisation) Scheme, 2005 notified
by the Securities and Exchange Board of India (SEBI). With demutualisation, BSE has two of
world's best exchanges, Deutsche Börse and Singapore Exchange, as its strategic partners.

Over the past 133 years, BSE has facilitated the growth of the Indian corporate sector
by providing it with an efficient access to resources. There is perhaps no major corporate in
India which has not sourced BSE's services in raising resources from the capital market.

Today, BSE is the world's number 1 exchange in terms of the number of listed
companies and the world's 5th in transaction numbers. The market capitalization as on
December 31, 2007 stood at USD 1.79 trillion . An investor can choose from more than 4,700
listed companies, which for easy reference, are classified into A, B, S, T and Z groups.

The BSE Index, SENSEX, is India's first stock market index that enjoys an iconic
stature , and is tracked worldwide. It is an index of 30 stocks representing 12 major sectors.
The SENSEX is constructed on a 'free-float' methodology, and is sensitive to market
sentiments and market realities. Apart from the SENSEX, BSE offers 21 indices, including
12 sectoral indices. BSE has entered into an index cooperation agreement with Deutsche
Börse. This agreement has made SENSEX and other BSE indices available to investors in
Europe and America. Moreover, Barclays Global Investors (BGI), the global leader in ETFs
through its iShares® brand, has created the 'iShares® BSE SENSEX India Tracker' which
tracks the SENSEX. The ETF enables investors in Hong Kong to take an exposure to the
Indian equity market.

The first Exchange Traded Fund (ETF) on SENSEX, called "SPIcE" is listed on BSE.
It brings to the investors a trading tool that can be easily used for the purposes of investment,
trading, hedging and arbitrage. SPICE allows small investors to take a long-term view of the
market.

BSE provides an efficient and transparent market for trading in equity, debt
instruments and derivatives. It has a nation-wide reach with a presence in more than 359
cities and towns of India. BSE has always been at par with the international standards. The
systems and processes are designed to safeguard market integrity and enhance transparency
in operations. BSE is the first exchange in India and the second in the world to obtain an ISO
9001:2000 certification. It is also the first exchange in the country and second in the world to
receive Information Security Management System Standard BS 7799-2-2002 certification for
its BSE On-line Trading System (BOLT).

BSE continues to innovate. In recent times, it has become the first national level stock
exchange to launch its website in Gujarati and Hindi to reach out to a larger number of
investors. It has successfully launched a reporting platform for corporate bonds in India
christened the ICDM or Indian Corporate Debt Market and a unique ticker-cum-screen aptly
named 'BSE Broadcast' which enables information dissemination to the common man on the
street.

In 2006, BSE launched the Directors Database and ICERS (Indian Corporate
Electronic Reporting System) to facilitate information flow and increase transparency in the
Indian capital market. While the Directors Database provides a single-point access to
information on the boards of directors of listed companies, the ICERS facilitates the
corporates in sharing with BSE their corporate announcements

Sensex & Nifty

The Sensex is an "index". What is an index? An index is basically an indicator. It


gives you a general idea about whether most of the stocks have gone up or most of the stocks
have gone down.

The Sensex is an indicator of all the major companies of the BSE.

The Nifty is an indicator of all the major companies of the NSE.


If the Sensex goes up, it means that the prices of the stocks of most of the major
companies on the BSE have gone up. If the Sensex goes down, this tells you that the stock
price of most of the major stocks on the BSE have gone down.

Just like the Sensex represents the top stocks of the BSE, the Nifty represents the top
stocks of the NSE.

Just in case you are confused, the BSE, is the Bombay Stock Exchange and the NSE
is the National Stock Exchange. The BSE is situated at Bombay and the NSE is situated at
Delhi. These are the major stock exchanges in the country. There are other stock exchanges
like the Calcutta Stock Exchange etc. but they are not as popular as the BSE and the NSE.
Most of the stock trading in the country is done though the BSE & the NSE.

Market Watch - BSE - BSE 200 over a Fortnight

Market Watch - NSE - S&P CNX Nifty over a Fortnight


COMPANY PROFILE

Introduction:

“Success is a journey, not a destination.” If we look for examples to prove this


quote then we can find many but there is none like that of karvy. Back in the year 1981, five
people created history by establishing karvy and company which is today known as karvy,
the largest financial service provider of India.

Success sutras of Karvy:

The success story of karvy is driven by 8 success sutras adopted by it namely trust,
integrity, dedication, commitment, enterprise, hard work and team play, learning and
innovation, empathy and humility. These are the values that bind success with karvy.

Vision of Karvy:

To achieve & sustain market leadership, Karvy shall aim for complete customer
satisfaction, by combining its human and technological resources, to provide world class
quality services. In the process Karvy shall strive to meet and exceed customer's satisfaction
and set industry standards.

Mission statement:
“Our mission is to be a leading and preferred service provider to our customers, and we
aim to achieve this leadership position by building an innovative, enterprising , and
technology driven organization which will set the highest standards of service and
business ethics.”

The Success Ladder:

Company overview:
Karvy was established as karvy and company by five chartered accountants during the
year 1979-80, and then its work was confined to audit and taxation only. Later on it
diversified into financial and accounting services during the year 1981-82 with a capital of
rs.150000. it achieved its first milestone after its first investment in technology. Karvy
became a known name during the year 1985-86 when it forayed into capital market as
registrar.

Evolution of KARVY:

It is well said that success is a journey not a destination and we can see it being
proved by karvy. Under this section we will see that how this “karvy and company” of 1980
became “karvy” of 2008. Karvy blossomed with the setting up of its first branch at Mumbai
during the year 1987-88. The turning point came in the year 1989 when it decided to enter
into one of the not only emerging rather potential field too i.e; stock broking. It added the
feather of stock broking into its cap. At the same time it became the member of Hyderabad
Stock Exchange through associate firm karvy securities ltd and then karvy never looked
back……..it went on adding services one after another, it entered into retail stock broking in
the year 1990. Karvy investor service centers were set up in the year 1992. Karvy which
already enjoyed a wide network through its investor service centers, entered into financial
product distribution services in the year 1993. One year more and karvy was now dealing into
mutual fund services too in the year 1994 but it didn’t stopped there, it stepped into corporate
finance and investment banking in the year 1995.
Karvy’s strategy has always been being the first entrant in the market. Karvy again hit
the limelight by becoming the first registrar in the country to be awarded ISO 9002 in the
year 1997. Then it stepped into the other most happening sector i.e; IT enabled services by
establishing its own BPO units and at a gap of just 1 year it took the path of e-Business
through its website www.karvy.com . Then it entered into insurance services in the year 2001
with the launch of its retail arm “karvy- the finapolis: your personal finance advisor”. Then in
the year 2002 it launched its PCG(Private Client Group) which looks after its High Networth
Individuals .and maintain their portfolio and provides them with other financial services. In
the year 2003, it commenced secondary debt and WDM trading.

It was a decade which saw many Indian companies going global…..so why the largest
financial service provider of India should lag behind? Hence, karvy launched “karvy global
services limited” after entering into a joint venture with Computershare, Australia in the year
2004.the year 2004 also saw karvy entering into commodities marketing through karvy
comtrade.

Year 2005 saw karvy establishing a separate branch for its insurance services under
the head “ karvy insurance broking ltd” and in the same year, after being impressed with the
rapid growth of karvy stock broking limited, PCG group of Hong Kong acquired 25% stake
at KSBL. In the year 2006, karvy entered into one of the hottest sector of present time i.e real
estate through Karvy realty& services (India) ltd. hence , we can see now karvy being
established as the lagest financial service provider of the country.
Now Karvy group consists of 11 highly renowned entities which are as follow:

The first securities registry to receive ISO 9002 certification in India. Registered with
SEBI as Category I Registrar, is Number 1 Registrar in the Country. The award of being
‘Most Admired’ Registrar is one among many of the acknowledgements we received for our
customer friendly and competent services.

Karvy stock broking ltd. Consists of five units namely stock broking servics,
depository participant, advisory services, distribution of financial products, advisory services
and private client goups.

It is registered with SEBI as a category 1 merchant banker. Its clientele


includesinclude leading corporate, State Governments, foreign institutional investors, public
and private sector companies and banks, in Indian and global markets.
Karvy insurance broking ltd is also a part of karvy stock broking ltd. At Karvy
Insurance Broking Limited both life and non-life insurance products are provided to retail
individuals, high net-worth clients and corporates.

The company provides investment, advisory and brokerage services in Indian


Commodities Markets. And most importantly, it offer a wide reach through our branch
network of over 225 branches located across 180 cities.

Karvy Global is a leading business and knowledge process outsourcing Services


Company offering creative business solutions to clients globally. It operates in banking and
financial services, inurance, healthcare and pharmaceuticals, media , telecom and
technology. It has its sales and business development office in New York, USA and the
offshore global delivery center in Hyderabad, India.

Karvy Realty (India) Limited is engaged in the business of real estate and property
services offering:

• Buying/ selling/ renting of properties

• Identifying valuable investments opportunities in the real estate sector

• Facilitating financial support for real estate and investments in properties


• Real estate portfolio advisory services

Karvy Computershare Private Limited is a joint venture between Computershare,


Australia and Karvy Consultants Limited, India in the registry management services industry.
Computershare, Australia is the world’s largest and only global share registry providing
financial market services and technology to the global securities industry. Karvy Corporate
and Mutual Fund Share Registry and Investor Services business, India's No. 1 Registrar and
Transfer Agent and rated as India's "Most Admired Registrar" for its overall excellence in
volume management, quality processes and technology driven services.

KDMSL is emerging as a leading service provider in the areas of E-governance


processing, insurance back office processing, record keeping, back office for BFSI clientele
and is in pursuit to establish credentials in the areas of Telecom processing, Data
management requirements of large corporate.

KDMSL is striving to achieve leadership position by tapping the Indian retail sector
boom, through a combination of our extensive branch network and proprietary IT backbone.
Needless to say, KDMSL is run as an independent outfit with seasoned professionals on
board, who have decades of expertise in the industry.

KDMSL is a fully owned subsidiary of Karvy Stock Broking Limited (KSBL),


incorporated in April 2008 and is head quartered at Hyderabad.

Karvy Now presents Karvy Fortune, a correlate opportunity from India’s foremost
financial services provider, karvy. It offers complete Karvy’s spectrum of financial products.
Karvy fortune gives the opportunity to associate with “Karvy Family” as Franchisee,
Remisser, E – Franchisee or as an Independent Financial Advisors.
In its ambition to emerge as a complete financial advisor, KARVY has recently
launched its personal financial planning wing, KARVY Financial Planning. It proposes to
cater all advice to its customer pertaining to personal finance.

With India emerging as a strong market, the investments avenues have also increased,
to advice our customers the right avenue according to their suitability.

Our vision is "To cater to the unique needs and requirements of the mass affluent by
providing complete financial solutions and thereby enabling them to transform their dreams
into reality."

Organization structure of karvy:

Talking about the organization structure of karvy, we have the board of directors as
the supreme governing body , the chairman being Mr. C parthasarthy, mr. m yugandhar as
the managing director, mr m s ramakrishna andmr. Prasad v. potluri as directors.

The board of diretors head the karvy group, karvy computershares limited, karvy
investors services ltd., karvy comtrade, karvy stock broking ltd., and karvy global services
ltd.

Karvy group being the flagship company looks after the functional departments such
as corporate affairs, group human resources, finance & accounting, training & development,
technology services and corporate quality.
Karvy computershare private limited facilitates mutual fund services, share registry
and issue registry whereas merchant banking is looked after by karvy investor services ltd.
Karvy stock broking ltd heads its another branch too ie. Karvy insurance broking ltd. The
services offered by KSBL are: stock broking, depository, research, distribution, personal
client group and institutional desk. And finally the BPO services are managed by karvy
global services ltd. Summarizing it in a diagram, it can be presented as:

Spectrum of services offered by Karvy:

Karvy being the top registrar and transfer agent, functions as registrar in most of the
issues in the country. Talking about the mutual fund services offered by Karvy, we can get
the products of 33 AMCs over here. it deals in both closed ended funds as well as open ended
too. Now one must be thinking why to get the mutual funds from Karvy instead of getting it
directly from AMCs???we have great reasons for it: the first one being ; if we avail the
services of Karvy then we can get the information about all the AMCs and their products at a
single place along with expert recommendations whereas at an AMC we can get information
about the products of that specific AMC only. And the second being wide network of
Karvy….nowadays we can find Karvy offices at remote areas too.

Along with these, Karvy is very well handling the role of depository participant.
Being registered with both the depositories i.e.; NSDL (national securities depository ltd) and
CDSL (central depository services ltd), Karvy can have access to both. Its wide network also
facilitates it in distribution of retail financial products.

Karvy believes in being updated always. So it is always ready to use latest


technologies so that its clients always be in touch with the latest happenings along with
Karvy. It offers e-business through internet through its website: www.karvy.com . Other than
it, it also provides its various services through SMSes.

Karvy’s services are not limited to its investors only rather its offerings are for its
corporate clients and distributors too. it is very well aware of the fact that in this era of neck
to neck competition, we cant ignore any of the aspects of our business….so there’s a offering
for everybody…everyone’s welcome at Karvy.

Why should investors choose for Karvy?

Excellence is next to nothing….and here at Karvy everybody tries their best to offer
excellent services to its clientele through its offerings maintaining the Karvy culture which
includes:

1. Controlled and low cost service culture: Karvy is there to serve its client at the
minimum possible cost. it controls cost by its various cost- cutting techniques and
minimization of avoidable costs.
2. Large volume processing capability: being the largest financial service provider in
the country, it has the unique distinction of operating its activities on a large scale which
benefits all the parties cordially.

3. Adherence to strict time schedule: Karvy knows that time is money and tries it best
to finish the task within the stipulated time schedule.

4. Expertise in coordinating multi-location responses: Karvy has got a wide network


and hence one can find its branches at most of the places in India. Thus it enjoys its presence
everywhere and coordinates among itself in solving the queries and in responding to any
situation.

5.Expertise in managing independent entities such as banks, post-office etc.: the work
culture of Karvy and the ethics followed inside Karvy makes its workforce compatible with
everybody, so the Karvy people establishes good coordination with independent entities too.

6. Pooling of group resources: Karvy group consists of eight subsidiaries, so it can


easily pool up its resources for accomplishment of its goals, whenever needed. The groups
can help each other whenever there are peaks and lows, and even in the case when they have
huge targets just as we saw few years back, Tata group pooling its resources to acquire Corus.

How Karvy achieved it?

The core competency of Karvy lies in the following points due to which it enjoys a
competitive edge over its competitors. The following culture adopted by karvy makes it all
time favorite among its clientele:
1. Professionally managed by qualified and trained manpower.
2. Uniquely structured in-house software and hardware department
3. Query handling within 48 hrs.
4. Strong secretarial, accounting and audit systems.
5. Unique work culture of working 7 days a week in 3 shifts.
6. Unmatched network spreading all over India.
How Achievements sounds synonymous to karvy:

The landmarks achieved by karvy very well define its success story. In the previous
pages, we learnt how a company started by five chartered accountants, named as karvy and
company turned into today’s karvy group, the largest financial intermediary of India. But
success didn’t came to karvy at a flow, the hard work and dedication of its workforce made it
what it is today…gradually it achieved the following landmarks and now it has became what
we call the karvy group, now it is:
1. Largest independent distributor for financial products.
2. amongst the top 5 stock broker.
3. among the top 3 depository participants.
4. Largest network of branches & business associates.
5. ISO 9002 certified operations by DNV.
6. amongst top 10 investment bankers.
7. Adjudged as one of the top 50 IT users in India by MIS south Asia.
8. full- fledged IT driven operation.
9. India’s no.1 registrar & securities transfer agent.

Clientele of Karvy:

Karvy’s culture has helped Karvy in achieving such a distinct position in the market where it
can boast of its huge client base. Be it a retail investor investing Rs. 500 in a SIP in Reliance
mutual fund or be it the largest corporate house of the country: Reliance industries-
everybody is heading towards Karvy for their wealth maximization, lets have a look at the
clientele of Karvy :
According to the data published in year 2007, Karvy stock broking ltd. Operates through
more than 12000 terminals, more than 290000 accounts are maintained and commands over
3.14% market share of NSE. The distribution services have access to more than Rs. 40 billion
Assets under Management. Karvy being a depository participant with both NSDL and CDSL,
manages more than 700000 accounts from more than 380 locations. Talking about the
registry services, it manages over 750 public/ right issues. At the same time, it is managing
over 16 million portfolios as registrar.
If we took a look at some of the top corporate houses availing the services of Karvy
then we have: Reliance, IOC, IDBI,LIC, Hindustan Unilever, Principal Mutual Fund,
Duetsche Mutual Fund, Yogokawa, Marico Industries, Patni Computers, Morgan Stanley,
Glenmark, CRISIL, 3M, Kotak Mahindra Bank, Bharti Televenture, Infosys Technologies,
Wipro, Infotech, IPCL,TATA consultancy services, UTI mutual fund etc. Thus in total karvy
serves over 16 million investors and 300 corporate.
Now, as the project was carried on in Burdwan, so there is a special reference to
working of Karvy at eastern zone and Stock Broking in particular.

KARVY at eastern zone:

Karvy stock Broking Ltd was started 11 yrs ago i.e.; during the year 1996 at Jatin Das
road which was later on established as the regional head office. Presently Mr. Alok
Chaturvedi is heading the eastern zone. Talking about the zonal offices, Karvy has zonal
offices at Kolkata, south Bengal, north Bengal, North east, Jharkhand, Bihar, Orissa and
Chhattisgarh. Each zonal office has got its own zonal heads. Karvy is a member of three
stock exchanges of India: National Stock Exchange (NSE), Bombay Stock Exchange (BSE)
and Hyderabad Stock Exchange (HSE).

Structure according to the Products offered by Karvy:


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 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.

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.

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