A Project Report On Investors Awareness about the Demat Account and services offered by Karvy Stock Broking Ltd

Submitted to

K.L.E Societys College of Business Administration, Lingraj College, (CBALC), Belgaum AUTOMONOUS

Submitted by

Pratik I. Porwal BBA09027

Acknowledgement

The architecture of success stands on a strong foundation made up of strenuous hard work, determination, presence acknowledgement is to of mind and above all timely advice from the learned and experienced people. This word of express my deep sense of successfully. On the onset I would like to thank Mr. Shashidhar, Branch Manager, for providing me all the facilities for completing this project. My sincere thanks to Prof P. R. Kadakol our Principal and my internal guide Prof. Soumya Naik of College of Business Administration Lingaraj College, Belgaum for giving me this opportunity to take up this study and supporting me by advising me in the due course of time. Lastly, I would like to thank my family members and my friends for their constant support. gratitude to all those people and

unseen hands that helped me to complete my project

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Mr. Pratik I. Porwal

K.L.E Societys College of Business Administration, Lingraj College, (CBALC), Belgaum AUTOMONOUS Accredited At the A Level by NAAC

CERTIFICATE
This is to certify that Mr. Pratik Porwal has satisfactorily completed his research project on Investors Awareness about the Demat Account and services offered by Karvy Stock Broking Ltd at Bijapur
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from 13th June 2011 to 9th July 2011 as prescribed by the Institute, in partial fulfilment of the course curriculum.

Prof. Soumya Naik Internal Guide

Prof. P.R. Kadakol Principal CBALC, Belgaum

Declaration

I hereby declare that this research project on Investors Awareness about the Demat Account and services offered by Karvy Stock Broking Ltd is an independent study carried out by me during my In-plant training under the guidance of Prof. Soumya Naik. This project was fully prepared by my own effort and has not been published elsewhere until now. I also declare that this project report has not been submitted to any other university or for award of any degree or diploma.

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Date: Porwal

Mr. Pratik I.

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Table of Contents
Table of Contents...................................................................................................6 Executive Summary ..............................................................................................7 Introduction...........................................................................................................8 About Karvy Group:..............................................................................................10 Research Methodology:........................................................................................13 Results and Findings............................................................................................15 Annexure............................................................................................................. 27 Precoding:.........................................................................................................28 Questionnaire................................................................................................... 30 Conclusion: ......................................................................................................... 33 Bibliography:........................................................................................................ 34

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Executive Summary
The Indian capital markets have seen a lot of economic swing since last decade but still it has been flourishing with rapid transformations. Reforms are continuing and are bringing a lot of change in structure, process and governance of capital market. This is helping Indian capital market to gain an image of mature market place in the capital markets of the world. The working mechanisms are now more flexible and transparent. Out of the major players showing their presence in the financial markets, Karvy Stock Broking Ltd. is one of India's fastest growing financial services companies; Karvy ranks among the top player in almost all the fields it operates. 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. Karvy has 575 offices over 375 locations across India and overseas at Dubai and New York. Over 9,000 highly qualified people staff Karvy.

The objectives of the research were to know the level of awareness about various products and services of the Karvy Stock Broking Ltd. and to know about the investors motive of investment, and their preferences towards Karvy Stock Broking Ltd.

Other than this, the research included the study of position of Karvy Stock Broking Ltd. in the market and its comparative position with other players. Descriptive research was used in the whole project. The data was collected through meeting investors and questionnaires were filled on the basis of their responses.

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Introduction
The trading on stock exchanges in India used to take place through open outcry without use of information technology for immediate matching or recording of trades. This was time consuming and inefficient. This imposed limits on trading volumes and efficiency. In order to provide efficiency, liquidity and transparency, NSE introduced a nation-wide on-line fully automated screen based trading system where a member can punch into the computer quantities of securities and the prices at which he likes to transact and the transaction is executed as soon as it finds a matching sale or buy order from a counter party. Screen based electronic system electronically matches orders on a strict price/time priority and hence cuts down on time, cost and risk of error, as well as on fraud resulting in improved operational efficiency. It allows faster incorporation of price sensitive information into prevailing prices, thus increasing the informational efficiency of markets. It enables market participants, irrespective of their geographical locations, to trade with one another simultaneous, improving the depth and liquidity of the market. It provides full anonymity by accepting orders, big or small, from members without 100% trading take place through electronic order matching. revealing their identity, thus providing equal access to everybody. Today India can boast that almost

Now Dematerialisation of shares is introduced a new concept which converts paper based physical trading into electronic trading. It is a safe and convenient way to hold securities. Screen based trading system helps in faster transfer of securities and no stamp duty is required on transfer of securities. The trading system operates on a strict price time priority. All orders received on the system are sorted with the best priced order getting the first priority for matching i.e. the best buy order match with the best sell order. Orders are matched automatically by the computer keeping the system transparent, objective and fair. The trading system provides tremendous flexibility to the users in terms of kinds of orders that can be placed on the system.

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The trading system also provides market information online. In order to promote Dematerialization of securities, NSE joined hands with leading financial institutions to establish the National securities depository Ltd. (NSDL), the first depository in the country, with the objective of enhancing the efficiency in settlement systems as also to reduce the menace of fake/forged and stolen securities. SEBI has made Dematerialised settlement mandatory in an ever increasing number of securities in a phased manner, thus bringing about an increase in the proportion of shares delivered in Dematerialised form. There is an increasing preference to settle trades, particularly in high value securities, in Demat form. Such high level of Demat settlement reassures success of rolling settlement.

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About Karvy Group:

The Karvy group was formed in 1983 at Hyderabad, India. Karvy ranks among the top player in almost all the fields it operates. 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 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 Computershare Limited is Indias largest Registrar and Transfer Agent with a client base of nearly 500 blue chip corporates, managing over 2 crore accounts. Karvy has 575 offices over 375 locations across India and overseas at Dubai and New York. Over 9,000 highly qualified people staff Karvy.

Organization:
Karvy was started by a group of five chartered accountants in 1979. The partners decided to offer, other than the audit services, value added services like corporate advisory services to their clients. The first firm in the group, Karvy Consultants Limited was incorporated on 23rd July, 1983. In a very short period, it became the largest Registrar and Transfer Agent in India. This business was spun off to form a separate joint venture with Computershare of Australia, in 2005. Karvys venture into stock broking began with marketing IPOs, in 1993. It became a member of The Stock Exchange, Mumbai in 2001. Dematerialization of shares gathered pace in mid-90s and Karvy was in the forefront educating investors on the advantages of dematerializing their shares. Today Karvy is among the top 5 Depositary Participant in India.

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While the registry business is a 50:50 Joint Venture with Computershare of Australia, Karvy has equity participation by ICICI Ventures Limited and Barings Asia Limited, in Karvy Stock Broking Limited. Karvy has always believed in adding value to services it offers to clients. A superior research team based in Mumbai and Hyderabad supports its employees to advise clients on their investment needs. With the information overload today, Karvys team of analysts help investors make the right calls, be it equities, mf, insurance. On a typical working day Karvy:

Has more than 25,000 investors visiting their 575 offices Publishes / broadcasts at least 50 buy / sell calls Attends to 10,000+ telephone calls Mails 25,000 envelopes, containing Annual Reports, dividend cheques / advises, allotment / refund advises Executes 150,000+ trades on NSE / BSE Executes 50,000 debit / credit in the depositary accounts Advises 3,000+ clients on the investments in mutual funds

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.

Karvy the Finapolis:

With the wide range of portfolio offerings, Karvy occupies a leading position 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 pushed Karvy to a position among the top distributors for equity and debt issues with an estimated market share of 15% in terms of applications mobilized.

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Karvy the Finapolis is the retail brand of the Karvy group, thereby providing planning and advisory services to the mass. 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 Karvy has over competition is our portfolio of offerings and the professional expertise. The investment planning for each customer is done with an unbiased attitude so that the service is truly customized. Karvys 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.

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Research Methodology: Management Problem:

To know whether the company has created the awareness among the public about its services (Stocks & De-mat account) to an extent that brings more clientele to them in Bijapur.
Research Problem:

To check the level of awareness about services of Karvy Stock Broking Ltd. De-mat account among the population.

Research Objectives:
To find out the awareness of population about De-mat account. To know Investors knowledge about stocks. To know about the populations awareness about the products and services offered by Karvy Stock Broking Ltd.

Approach to the Research:

The required data is collected through the questionnaires and the respondents are asked to tick mark the answers and also explain the reasons to their answers to certain questions to find out their awareness about Karvy Stock Broking Ltd. and De-mat account.

Research Design:
This research is descriptive in nature.

Data Collection: Data Required:

Primary data Secondary data Survey method is used for collecting primary data. A structured questionnaire is used for the purpose.
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Measurement Technique:
Questionnaire: Open ended questions; multiple choice questions will be asked.

Secondary Data was collected for the purpose to get the information about the industry and company. The secondary data has been collected from various websites, which includes the companys official website and others.

Sampling Technique:
Non-probability sampling technique Convenience sampling.

Sample Population:
The population consists of the investors in Bijapur.

Sampling Unit:
Individuals (18 & above)

Sample Size:
100 individuals.

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Results and Findings

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1.

Which are the different types of investments you are aware of?

Bank FD Gold Real Estate Shares Mutual Funds All of the above

Out of the total number of respondents i.e. 100 following was the analysis:
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Majority of them said they are aware of Bank FD-33% 29% said they are aware of stocks and share investments. 14% of them are aware of gold investment. 10% of the total population is aware of all the stated types of investments.

9% are aware of the investment in real estate. 5% are aware of mutual funds.

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 2. How did you get to know about the different types of investments? Hoardings Friends/Family Websites Advertisements All of the above

Out of the total number of respondents i.e. 100 following was the analysis:

Friends and Family are the major source of information from the respondents got to know about the different modes of investment-40%

20% responded advertisements as their source of information. 19% of the total respondents are aware of all the above stated modes. Different websites, company websites is also a source of information-13% Comparably hoardings only constituted up to 8%

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3.

How would you rate your knowledge about investment? Poor Average Good Very Good Excellent

Out of the total number of respondents i.e. 100 following was the analysis:

Majority of the respondents rated their knowledge about investment as average-35% 26% said their knowledge is good. Forming the major part of the whole share, 21% of them said their knowledge is poor. People with excellent and very good level were 9% repectively.

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1.

4.

What is your purpose of investment? To assure safety of invested capital To earn regular Income / revenue To achieve a particular investment goal To earn capital gains / appreciation To accumulate wealth for retirement All of the above

Out of the total number of respondents i.e. 100 following was the analysis: Majority of the respondents (32%) major motive of investments to assure their safety of their capital. With a meager difference-31%, others said they wanted to accumulate wealth for their retirement. 14% said they have some particular investment goal and they invest to achieve it. 12% think this will earn them a regular income or revenue.

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6% had the entire above stated motive. Only 5% of them invest to earn capital gains.

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5.

How long have you been transacting in the stock exchange? Less than 1 year 1 year 2 years More than 3 years Not yet started

Out of the total number of respondents i.e. 100 following was the analysis: Here, majority of them, 33%, are trading in the stock exchange. 27% were trading from 2years. The major issue, 15% of the total population havent even started trading 13% are freshers i.e. they have started in less than a year. 12% from 1year.

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6.

Do you trade frequently or occasionally? Frequently Occasionally Nil

This question was asked to know the frequency of trading of the investors. Out of the total number of respondents i.e. 100 following was the analysis: Majority of them are occasional traders. 40% trade frequently and are active. 15% of them were nil as they havent started trading.

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7.

Do you know about the facilities provided by Karvy Stock Broking Ltd? Yes No

Out of the total number of respondents i.e. 100 following was the analysis: Majority of them-57%, are not totally aware of the services provided by Karvy Stock Broking. 43% of them are aware of the services through their friends and family.

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8.

Would you like to open an account with Karvy Stock Broking Ltd in future? Yes No 60 40

Out of the total number of respondents i.e. 100 following was the analysis: Majority of the respondents i.e. 60% said they are interested to open a trading account in Karvy Stock Broking, as they were aware of the services provided by the firm. Remaining 40% declined as they already have their accounts with other competitive firm.

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9.

Would you suggest your Family/Friends to open a Demat account and trade? Yes No 65 35

Out of the total number of respondents i.e. 100 following was the analysis: Majority of the respondents i.e. 65% said that they would suggest their Family/Friends to open a Demat account and trade, as they are already trading. Remaining of them said they wouldnt-35%

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Annexure

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Precoding:
1st Question: Which are the different types of investments you are aware of? Bank FD Gold Real Estate a b c

Shares d Mutual Funds e All of the above f nd 2 Question: How did you get to know about the different types of investments? Hoardings Friends/Family Websites Advertisements
rd

a b c d

All of the above e 3 Question: How would you rate your knowledge about investment? Poor Average Good Very Good Excellent a b c d e

4th Question: What is your purpose of investment? To assure safety of invested capital a To earn regular Income / revenue To achieve a particular investment goal To earn capital gains / appreciation To accumulate wealth for retirement All of the above b c d e f

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5th Question: How long have you been transacting in the stock exchange? Less than 1 year 1 year 2 years More than 3 years Not yet started a b c d e

6th Question: Do you trade frequently or occasionally? Frequently Occasionally Nil a b c

7th Question: Do you know about the facilities provided by Karvy Stock Broking Ltd? Yes No a b

8th Question: Would you like to open an account with Karvy Stock Broking Ltd in future? Yes No a b

9th Question: Would you suggest your Family/Friends to open a Demat account and trade? Yes No a b

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Questionnaire

I am a student of BBA 4 semester studying in KLEs Lingaraj College, Belgaum, conducting a survey on awareness about De-mat Account & Karvy Stock Broking Ltd. The information is required for the academic purpose. Kindly help me for this study by filling this questionnaire.
Name Age : :

th

1. Which are the different types of investments you are aware of? Bank FD Shares Gold Mutual Funds Real Estate

2. How did you get to know about the different types of investments? a. Hoardings. b. Friends/Family. c. Websites. d. Advertisements.

3. How would you rate your knowledge about investment?

a. Poor

b. Average c. Good
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d. Very Good e. Excellent

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4. What is your purpose of investment? a. To assure safety of invested capital b. To earn regular Income / revenue c. To achieve a particular investment goal d. To earn capital gains / appreciation e. To accumulate wealth for retirement

5. How long have you been transacting in the stock exchange?

a. Less than 1 year b. 1 year c. 2 years d. More than 3 years e. Not yet started

6. Do you trade frequently or occasionally?

a. Frequently

b. Occasionally

c. Nil

7. Do you know about the facilities provided by Karvy Stock Broking Ltd? a. Yes b. No

8. Would you like to open an account with Karvy Stock Broking Ltd in future? a. Yes b. No

9. Would you suggest your Family/Friends to open a Demat account and trade? a. Yes b. No

Thank you for your co-operation

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Conclusion:

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Bibliography:
www.google.com www.karvy.com

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