A

PROJECT REPORT
ON
TRAINING UNDERTAKEN AT

KARVY STOCK BROKING LTD.

Maping Market Potential of Karvy Stock Broking Limited

Submitted in partial fulfillment of

Masters Of Business Administration

Submitted By: Submitted To:

Sandeep Thakur
M.B.A 3rd Sem
S.A.S.IIT&R MOHALI(PUNJAB)
2009-2011
ACKNOWLEDGEMENT
I am really happy and excited in representing this summer training
project report before you.
I must express my gratitude towards KARVY STOCK BROKING LTD.
MANDI(H.P) for giving me an opportunity to work on this report.
And ofcourse I would like to thank Mrs.jasminal mam for giving me an
opportunity and her guidance help me throughout prepearing this
report.She has provided me a valuable suggestions and excellence
guidance which proved very helpful in completion of this report.
At last I would also like to thank my parents and friends who have given
me their advice and encouragement to prepare this report.
SANDEEP THAKUR

OBJECTIVES:

Primary Objective:
● To map market potential of Karvy Stock Broking Limited.

Secondary Objective:
● To assess an awareness of Trading in Mandi City.

● Competitor Analysis

INTRODUCTION
COMPANY PROFILE:
Member National Stock Exchange(NSE) and The Bomb
Y Stock Exchange(BSE).
Karvy Consultants Limited was established in 1982 at Hyderabad. It was
established by a group of Hyderabad based practicing Chartered
Accountants. At initial stage it was very small in size. It was started with
a capital of Rs 150000.
In starting it was offering only 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, Insurance e.t.c.
Today Karvy has access to millions of Indian Shareholders, besides
companies, banks, financial institutions and regulatory services. Over
the past one and half decade Karvy has evolved as a veritable link
between industry, finance and people.
In January 1998, Karvy became first Depository Participants in Andhra
Pradesh. An ISO 9002 Company. Karvy,s commitment to quality and
retail reach has made it an Integrated Financial Service Company.
Today Company has 230 Branch Offices in 164 cities all over India. The
Company service over 16 million individual investors ,180 corporate
and handle corporate disbursements that exceed Rs.2500 crores.

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 premier Financial Services Enterprise,
offering a broad spectrum of customized services to its clients, both
corporate and retail.

KARVY GROUP:
Karvy Consultants Limited.
Karvy Securities Limited.
Karvy Investor Services Limited.
Karvy Stock Broking Limited.
Karvy Computer Shares Pvt. Limited.

As the flagship company of the KARVY group, Karvy Consultants

Limited has always remained at the helm of organizational affairs,
pioneering business policies, work ethic and channels of progress.
Having emerged as a leader in the registry business, that it ventured into,
Karvy have now transferred this business into a joint venture with
Computershare Limited of Australia, the world largest registrar. With
the advent of Depositories in Indian capital market and the relationships
that Karvy has created in the registry business it believes that they were
best positioned to venture into this activity as Depository participant.
They were one of the early entrants registered as Depository Participant
with NSDL, the first depository in the country, and then with CDSL.
Today Karvy service over seven lakhs customer accounts in this
business spread across over 540 cities/towns in India and are ranked
amongst the largest Depository participants in the country.
Karvy investor services Limited:
Karvy Investor Services Ltd, a SEBI registered merchant Banker has
emerged as a leading Investment banking entity in the country with over
a decade of experience. It has built its reputation by capitalizing on its
qualified professionals, who have successfully executed a large number
of complex and unique transactions.
It have also emerged as a trailblazer in the arena of relationships, both at
the customer and trade level because of its unshakable integrity,
seamless service and innovative solution that are turned to met varied
needs.
Credentials.
● Emerging as a leading Investment Banker with a support from its
Group entities in research, stock broking, institutional sales and
real distribution.
● Strong team of more than 25 qualified professionals operating
from six cities: Hyderabad, Chennai, Delhi, Mumbai, Kolkata and
 Bangalore apart from 2 overseas offices at New York (USA) and
Dubai.
● One of the largest retail distribution networks with over 584
branches in over 384 cities/towns.
Karvy Computer Shares Pvt. Ltd:
It is a joint venture between Computershare Australia and Karvy
consultants ltd. India in the registry management services industry.
Computershare, Australia is the world,s largest and only global share
industry providing financial market services and technology to the
global securities industry.

BOARD OF DIRECTORS
Karvy Consultants Limited
Parthasarathy C
Yugandhar M
Ramakrishna M S
Prasad V Potluri
Robert Gibson
Sanjay Kumar Dhir
R Shyamsunder
[ Table 1: BODs of Karvy Consultants Limited]

Karvy Investor Services limited

Parthasarthy C
Yugandhar M
Ramakrishna M S
[Table 2: BODs of Karvy Investor Services Limited]

Karvy Securities Limited

Parthasarthy C
Yugandhar M
Ramakrishna M S
Ajay Kumar K
William Samuel
Nicholas Tully
[table 3: BODs of Karvy Securities Limited]
Karvy Stock Broking Limited
Parthasarthy C
Yugandhar M
Ramakrishna M S
Ajay Kumar K
Kutumba Rao V
William Samuel
Nicholas Tully
[Table 4: BODs of Karvy Stock Broking Limited]

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 work as intermediary between industry and people. Karvy work
as investment advisor and helps people to invest their money safe way.
Karvy helps helps industry in achieving finance from people by issuing
shares, debentures, bonds, mutual funds, fixed deposits e.t.c.

VISION OF KARVY:
Company,s vision is crystal clear.
“To grow at 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.

KARVY SERVICES- AN OVERVIEW:

1. Stock Broking
2. Demat Services
3. Investment Product Distribution
4. Investment advisory Services
5. Corporate Finance and Merchant Banking
6. Insurance
7. Mutual Fund
8. IT enabled Services
9. Registrar and Transfer Agents

● Stock Broking: Karvy is working as a Capital market

intermediaries. Stock brokers are regulated by SEBI [stock Broker
and Sub broker] Regulations 1992. The stockbroker is a member of
stock exchange. Stockbroker are intermediaries who are allowed to
trade in securities on their behalf as well as on the behalf of clients.
Stock broker expand their business by engaging sub-broker. Sub
broker means “any person not being a member of stock exchange
who acts on behalf of a stock broker as an agent or otherwise for
assisting investor in buying, selling or dealing in securities through
such stock brokers.
● Demat Services: Karvy is a depository participant with the national
Securities Depository Limited(NSDL) for trading and settlement of
dematerialized shares. Depository Participants are described as an
agent of the depository. They are intermediaries between the
depository and investors. The relationship between DPs and the
depository is governed by an agreement made between the two
under depositories act.
● Since Karvy is also in Broking business, Investor who use Karvy
depository services gets dual benefit. They can use Karvy
brokerage services to execute transactions and Karvy depository
services to settle them.
● Investment Product Distribution: Company is also concern with
the distribution of investment products like:
a. Fixed Deposits
b. Bonds
c. IPO

a)Fixed Deposits: Karvy is a dealer of 34 fixed deposits of Public

Sector, Non Banking finance companies, Housing Finance
Companies, and Manufacturing companies. Such as JK enterprises,
Supreme Industries ltd, Jindal Steel and Power ltd ,Escort ltd,
Amtek India ltd, HDFC ltd, PNB Housing Finance ltd.

b) Bonds: Karvy is a dealer of following bonds:

RBI saving bonds
NHB
REC

c)IPO: Company also provide services related to Initial Public

Offer of Company. Company provides stationery at the time of
IPO as well as provides information to investors regarding IPO and
solve their queries.
● Investment Advisory Services: This division provides portfolio
management services to high net worth individuals and corporate.
The expertise of Karvy in research and stock broking gives it right
 prospective to provide investment advisory services. Company
provide services to its clients. It designs portfolio for investor to
invest their savings in various financial products like share, bonds,
mutual funds, debentures, fixed deposits e.t.c. Company designs
portfolio by considering following factors:
Investor requirement of getting money back
Investor willingness to take money back
Investor tax planning e.t.c
● Corporate Finance and Merchant banking: Merchant Banking is a
final intermediation that matches entities that need capital and
those that have capital. Hence they facilitate the flow of capital in
market. Karvy enjoys SEBI category (1) authorization of Merchant
Banking. Karvy offers the full spectrum of Merchant Banking
Services, beginning from identifying the best time for an issue to
final stage of marketing it to harvest unparalleled success. As
merchant banker it provides following services:
Issue management, instrument designing, pricing of the issue,
registration process for the issue of shares, marketing efforts, final
allotment to investors, listing details on stock exchanges e.t.c
● Insurance: Karvy is also a dealer of many private insurance
companies. At mandi branch company is associated with dealing of
following companies:
Tata AIG life insurance.
Reliance life insurance.
● Mutual Fund Services: With mutual fund emerging as a distinct
asset class, Karvy has made a strategic choice to leverage the
power of latest technology to provide a cutting edge to its services.
Karvy, today service nearly 80% of the Asset management
Companies (AMC) across an extensive network of service centers
with assets under service in excess of Rs 10,000 crores. Karvy
ability to mass customize and offer a diverse range of products for
a diverse range of customers has helped mutual fund companies to
uniquely position themselves in the market place. These diverse
range of services cut across multiple delivery channels-service
 centers, mobile phones, web, call centers has brought home the
benefits of technology to investors, distributors and mutual funds.
Some of mutual fund clients of Karvy are Birla Mutual fund,
Deutsche mutual Fund, DSP Merrill Lynch Fund, Franklin
Templeton Investments, GIC Mutual Fund, HDFC Mutual Fund,
HSBC Mutual Fund and so on.
● Income Tax Enabled Services: Karvy has started this service in
march 2004.Karvy work as TIN facilitation center it provides
following IT enabled services.
a. Distribution of Pan Card
b. Distribution of Tan Card
c. Services related to E-TDS
Karvy work as an intermediary between NSDL and IT players.
Karvy provides various forms for different IT enabled services and
guide people to fill that forms. It also solve queries for the Tax
payers.
● Registrar and Transfer Agents: In 1985 Karvy entered the
Registrar and Share Transfer business to create a market niche in
the competitive field of financial services. In 1994-95 it reached a
milestone when it processed 104 Public Issues constituting 46%
market share. Now in its second decade of existence, Karvy is the
leader in the industry. In an opinion poll conducted by an
independent research agency-MARG Karvy has been rated as
India,s most Admired Registrar on various parameters:-
Overall Excellence.
Handling of Volumes.
Timely Dispatch
Quality Management and Technological Up Gradation.
A SEBI Category 1 Registrar, so far, Karvy has handled over 675
Issues as Registrars to Public Issue Processed over 52 million
applications and servicing over 16 million investors.
 KARVY STOCK BROKING LIMITED
Member- National Stock Exchange(NSE). The Bombay Stock
Exchange(BSE), and The Hyderabad Stock Exchange(HSE).
Karvy Stock broking Limited. One of the cornerstones of the Karvy
edifice, flows freely towards attaining diverse goals of the customer
through varied services. Creating a plethora of opportunities for the
customer by opening up investment vistas backed by research based
advisory services. Here growth knows no limits and success recognizes
no boundaries. Helping the customer creates waves in this 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. This is what Karvy provides in Broking Services.
Karvy offers services that are beyond just a medium for buying and
selling stocks and shares. Instead Karvy provide services which are
multi-dimensional and multi-focused in their scope. It offer trading on a
vast platform; NSE and BSE. More importantly, Karvy makes trading
safe to the maximum possible extent, by accounting for several risk
factors and planning accordingly. The company has 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 to
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. Besides
this Karvy also offer special portfolio analysis packages that provide
daily technical advice on scripts for successful portfolio management
and provide customized advisory services to help clients make the right
financial moves that are specifically suited to portfolio. Karvy Stock
Broking services are widely networked across India with the number of
trading terminals providing retail stock broking facilities.
To empower the investor further it made serious efforts to ensure that its
research calls are disseminated systematically to all its stock broking
clients through various delivery channels like email, chat, sms, phone
calls e.t.c.
Depository Participants
The onset of technology revolution
in financial services Industry saw the emergence of Karvy as an
electronic custodian registered with National Securities Depository
Limited (NSDL) and Central Securities Depository Limited (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 services
Offering a wide trading platform with a dual membership at both NSDL
and CSDL, it is a powerful medium for trading and settlement of
dematerialized shares. Karvy 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 demat division including technological enhancements like SPEED-e,
make its response time quick and delivery impeccable.

COMPETITOR ANALYSIS
1. BAJAJ CAPITAL:
It was established in 1964 in Delhi. In 1965 it
innovates a new financial instrument Companies Fixed Deposits
and becomes the first company to raise fixed deposits. The
objective of company is to provide professional guidance to
investors on where, when, and how to invest and to assist the
corporate sector in its resource raising activities. Bajaj Capital
became the first company to set up Investment centers all over
India for this purpose. Today Bajaj Capital has 90 Offices in 40
 important cities and has a team of around 500 employees
nationwide.
SERVICES PROVIDED:
● Merchant Banking
● Buying and Selling of Money Market Investments
● Distribution of Final Products
● Investment Advisory Service
● Company Fixed Deposits
● Bonds
● Mutual funds
● Life Insurance & General Insurance
● Tax Saving Schemes
● Initial public Offerings
● Housing Loans
FINANCIAL PLANNING
Investment Planning
Retirement Planning
Insurance Planning
Tax Planning
Short-term cash flow Planning

2. MCS Limited: It was established in 1985 in New Delhi. It is one of

the largest Data Processing House employing more than 600
people. MCS Ltd. has 8 branches all over India.
Volumes Handled:
Share registry activities for over 100 corporates servicing over 10
million investors.
Mutual Fund operations for 25 funds, servicing over 4.5 million
investors.
Billing and settlement plan for Indian operations of IATA Geneva
for 1.2 million tickets per annum covering ( 26 airlines & over
1200 agents).
Services Offered:
● Registrars & Transfer agents
● Registrars to IPOs/ Right Issues
 ●Registrars to Open Offers
● Registrars to Mutual Funds
● Data Processing to airlines
● Print Shop Services
MCS is a major player in these activities in India with a Market Share
about 25%. MCS today provides these services to over 140 Corporate
and Mutual Fund for a total investor base of 15 million.

3. ICICI Securities Limited:

It is a wholly owned Investment-
banking subsidiary of ICICI Limited. It is the only non- japenese
Asian Financial Institution to be listed on the New York Stock
Exchange (NYSE). ICICI Securities was formed on 22nd Feb 1993,
when ICICI Merchant Banking Division was spun off into a new
company. ICICI Securities today is India,s leading Investment
Bank and one of the most significant players in the Indian capital
Markets. ICICI Brokerage Services Limited IBSL set up in March
1995, ISBL is a 100% subsidiary of I-SEC. It commenced its
brokerage activities in 1996 and is registered with the National
Stock Exchange Of India and The Stock Exchange Mumbai. ICICI
has started a website ICICI direct.com which is the most
comprehensive website, which allows you to invest in shares,
mutual funds, derivatives (futures and options) and other financial
products. It has a large network of branches all over India.
Services Offered:
● Merchant Banking
● Demat service
● Stock Broking
4. HDFC:
It is the leading financial company in India. It has large
network of Branches all over India. HDFC Securities which is
fully subsidiary of HDFC provides following services:
● Demat Service
● Life insurance
● Banking service
 ● Housing Finance
● Vehicle Finance
● Educational Loan
● Personal Loan
● Mutual Fund
5. Kotak Securities Limited: It is one of the largest stock broking
house in the country and a leading distributor of primary market
offers. It is a joint venture between Kotak Mahindra Bank and
Goldman Sachs, the international investment and brokerage firm. It
is a corporate member of both the NSE and the BSE. It is also a
depository participant with the National Securities Depository
Limited(NSDL) for trading and settlement of dematerialized
accounts.
Services Offered:
● Stock Broking
● Financial Product Distribution
● Demat services
● Investment Advisory Services

Motilal Oswal Securities Limited: It is one of the leading equity

research and broking houses of India. It has a 20 member research
team, which is engaged around the clock in analyzing the Indian
Economy and corporate sectors to identify equity investment ideas.
Asia Money Brokers poll 2002 has rated it as one of the best
Indian Broking House for research, for second time since 2000. It
has wide network of branches, around 158 branches all over India.
Services Offered:
● Demat Services
● Stock broking Services
● Investment Advisory Service