Summer Internship report on Comparative study of karvy with other brokers by Ayush yadav

PRESTIGE INSTITUTE OF MANAGEMENT AND
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RESEACH, INDORE (M.P)
SUMMER INTERNSHIP IN
SUMMER PROJECT REPORT ON
”COMPARATIVE STUDY OF KARVY WITH OTHER
BROKER’S”
(02th June-15th July)
YEAR 2013-2015
GUIDE BY: SUBMITTED BY:
DR. SACHIN MITTAL AYUSH YADAV
MBA-FA (3rd SEMESTER) ‘A’
SCHOLAR NO. - 1121806727

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DECLARATION
I hereby declare that the project report titled “COMPARATIVE STUDY OF KARVY
WITH THE OTHER BROKER’S” is a genuine research work done by me and it has not been
published anywhere earlier.
DATED:
PLACE: INDORE

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CERTIFICATE OF THE ORGNIZATION
This is to certify that AYUSH YADAV perusing MBA (FA) at PRESTIGE INSTITUTE OF
MANAGEMENT, INDORE has worked under my supervision and guidance on his
discretion entitled “COMPARATIV STUDY OF KARVY WITH OTHER BROKER’S” at
KARVY STOCK BROKING LTD. Indore from 5th June 2014 to 20th July 2014. To the best
of my knowledge this is an original piece of work.
During his project he was found to be very sincere, regular and attentive to small details
whatsoever told to him.
I wish him best of luck and success in life.
Dated
Branch Head
Karvy Stock Broking Ltd

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CERTIFICATE OF THE INSTITUTE
This is to certify that the project report entitled “COMPARATIVE STUDY OF KRVY
WITH THE OTHER BROKER’S” at KARVY STOCK BROKING LIMITED is a bonafide
record of work done by AYUSH YADAV and submitted in partial fulfilment of the
requirements of MBA(FA) program of PRESTIGE INSTITUTE OF MANAGEMENT AND
RESEARCH, INDORE.
Dated, INDORE (Signature of the mentor)
Prof. SACHIN MITTAL
PIMR, INDORE

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ACKNOWLEDGEMENT
Sometimes words fall short to show gratitude, the same happened with me during this project.
The immense help and support received from Karvy Stock Broking Limited overwhelmed me
during the project.
My sincere gratitude to Mr. AKLANK JAIN (Branch Manager, KARVY) and Dr.
YOGESHAWRI PHATAK (Director, PIMR, INDORE), for providing me with an
opportunity to work with KARVY STOCK BROKING LIMITED.
I am highly indebted to Mr. RAKESH SINHA (C.M of KARVY) and company
project guide, who has provided me with the necessary information and his valuable
suggestion and comments on bringing out this report in the best possible way.
I also thank Prof. SACHIN MITTAL Faculty guide, PIMR INDORE who has
sincerely supported me with the valuable insights into the completion of this project.
Last but not the least: my heartfelt love for my parents, whose constant support and
blessings helped me through this project.

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PREFACE
Private sector is one of the fastest growing sector in the country. After the liberalization the
Private industry still holds vast opportunities for young and experienced professionals.
Among the Private Stock Broking Companies, Karvy stock Broking Ltd. Is the key player
and has been making efforts to improve efficiency and customers services.
There are many companies in the market which are providing the financial project
like insurance, mutual funds, demat account services, general insurance, portfolio
management services, wealth management, gold coins, money changing, money transfers and
the others. Including Demat Accounts services. KARVY STOCK BROKING LTD. Offers
stock broking services, mutual fund services, insurance, commodity, IPO services, gold coin
exchange and foreign exchange services, Share Registry, Mutual Fund Registry, and PAN
Service below the single roof. Hence, KARVY STOCK BROKING LTD. provides many
financial products on the single window. It consists of 7 units namely-
1. Stock Broking services
2. Demat
3. Mutual Funds
4. IPO
5. Commodity
6. Forex
7. Gold

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INDEX
S.NO CONTANT PAGE
NO.
1 INTRODUCTION OF KARVY 07
2 SERVICES OFFERED BY KARVY 12
3 OBJECTIVE OF STUDY 17
4 METHODOLOGY 18
5 MARKETING STRATEGIES 26
6 HR STRATEGIES 28
7 FINANCIAL POSITION
36
8 WINGS OF KARVY 39
9 COMPITITOR OF KARVY 43
10 FINDINGS 45
11 CONCLUSION & SUGGESTION 46
12
BIBLIOGRAPHY 47

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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, enterprises, 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 highest standards of service and business ethics.”
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.
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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 2014. 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 become the
member of Hyderabad Stock Exchange through association 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 services centres were set up in the year
1992. Karvy which already enjoyed a wide network through its investor services centres,
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 sectors I.e.; IT enables services by
establishing its own BPO unit’s and at a gap of just one year it look 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 fin polis: your personal finance advisor”. Then
in the year 2002 it launched its PCG (Private Client Group) which looks after its High Net
worth 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 services provider of India should lag behind? Hence, karvy launched “karvy global
services limited” after entering into a joint venture with the Computershare, Australia in the
year 2004. The year 2004 also saw karvy entering into commodities marketing though karvy
comrade.

Year 2005 saw karvy established 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 largest financial service provider of the country.
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KARVY SERVICES – AN OVERVIEW
1. Stock broking
2. Demat services
3. Investment product distribution
4. Investment advisory services
5. Corporate finance & Merchant banking
6. Insurance
7. Mutual fund services
8. IT enabled services
9. Registrars & Transfer agents
10. Loans
1. Stock Broking:
KARVY is working as Capital Market Intermediaries. Stockbrokers are regulated by SEBI
[Stock-brokers and Sub-brokers] Regulations, 1992. The stockbroker is a member of the
stock exchange. Stockbrokers are the intermediaries who are allowed to trade in securities on
the exchange of which they are members. They buy and sell on their own behalf as well as on
behalf of their clients.
Stockbrokers expand their business by engaging sub-broker. Sub-brokers mean “any person
not being a member of a stock exchange who acts on behalf of a stock broker as an agent or
otherwise for assisting the investors in buying, selling or dealing in securities through such
stock-brokers.”
2. Demat Services:
Karvy is a depository participant with the National Securities Depository Limited (NSDL) for
trading and settlement of dematerialized shares.
Depository Participants (DPs) are described as an agent of the depository. They are
intermediaries between the depository and the investors. The relationship between the DPs
and the depository is governed by an agreement made between the two under Depositories
Act.
A DP can offer depository-related services only after obtaining a certificate of registration
from SEBI.

Since Karvy is also in the broking business, investors who use Karvy’s depository services
get a dual benefit. They can use Karvy’s brokerage
Services to execute transactions and Karvy’s depository services to settle them.
3. Investment Products Distribution:
Company is also concern with the distribution of investment products like
(a). Fixed Deposit
(b). Bonds
(c). IPO
(a). Fixed Deposit: KARVY is dealer of 34 fixed deposits of various types which includes
fixed deposits of Public Sector, Non-Banking Finance Companies, Housing Finance
Companies and Manufacturing Companies.
(b). Bonds: Karvy is dealer of following bonds
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1. RBI Saving Bonds
2. NHB
3. REC
(c). IPO: Company is also provides services related to Initial Public Offer of company.
Company provides stationary at the time of IPO as well as provides information to investors
regarding IPO and solves their queries.
4. 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 the right perspective
to provide investment advisory services. Company provides advisory services to its clients.
Financial goal of each individual investor varies according to his dream, ambition and
family size and future financial planning for the children & old age pension for self and wife
so does the pathway to achieve it. Karvy apply the principles of Financial Planning as both
science & art, it understands the time horizon, risk bearing capacity and investment goals of
investors keeping in mind their psyche and financial needs. Based upon this Karvy helps
individual investors to plan their entire life up to retirement, Taxes, Insurance needs and other
important personal financial goals. It designs portfolio for investor to invest their saving in
various financial products like shares, bonds, debentures, mutual funds, fixed deposits,
insurance etc., Company design portfolio by considering following factors.
Investor’s requirement of getting money back,

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Investor’s willingness to take risk,
Investor’s tax planning etc.
5. Corporate finance & Merchant banking:
Corporate finance is the financial activity of corporation. It deals with the firm's operations
with regard to investing and financing. It concerned with how firms raise capital and the
consequences of alternative methods of raising capital. Firm’s capital can be raised by raising
loans, issuing shares, and acquiring or merging with other businesses by public or private
companies.
Merchant banking is a financial intermediation that matches entities that need capital and
those that have capital. Hence they facilitate the flow of capital in the market.
Karvy enjoys SEBI category (I) authorization for 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 a merchant banker Karvy offer 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
Loan syndication
Lease financing
Corporate advisory services
Underwriting
Portfolio management
6. Insurance:
Karvy is also dealer of many private life insurance companies. At Jamnagar branch, company
is associated with dealing of following companies.
ICICI Prudential Life Insurance
HDFC Life Insurance
TATA AIG Life Insurance

7. Mutual Fund Services:
Since its inception in 1982, Karvy has demonstrated a dedication coupled with dynamism that
has inspired trust from various segments – corporate, government bodies and individuals.
Karvy has since been performing a pivotal role as the intermediary – the interface – between
these players.
With Mutual Funds 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 (AMCs) across an extensive network
of service centers with assets under service in excess of Rs.10, 000 crores.
Karvy's 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,
web, mobile phones, call centre – has brought home the benefits of technology to investors,
distributors, and the mutual funds.
Going forward, Karvy shall strive to create new products and services, which would address
the needs of the end customer. Company’s single minded focus in delivering products for
customers has given it the distinguished position of being the preferred provider of financial
services in the country.
8. Income Tax enabled services:
Karvy has been started this service since March, 2004. Karvy is work as TIN Facilitation
Centre 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 payers. Karvy provides various form
for different IT enabled services and guide people to fill that forms. It also solves queries of
the tax payers. It also distributes PAN and TAN card to the tax payers.
9. Registrars & 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 per cent market share. Now in its second decade
of existence, Karvy is the leader in the industry: In an opinion poll conducted by an
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independent market 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 issues processed over 52 million applications and is servicing over 16 million
investors from various locations spread over 205 clients.
10. Loan:
Karvy has recently started this service at selected branches of metro cities. This service has
not been started in Saurashtra-Koch region. Karvy provides loans for following.
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Vehicle Loan
Home Loan
Personal Loan

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OBJECTIVE OF STUDY
The objective of my project include the following:-
 To compare the services of KARVY STOCK BROKING Ltd. with their
competitors.
 To find out potential customers for KARVY STOCK BROKING Ltd.

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METHODOLOGY
Methodology is the systematic, theoretical analysis of the methods applied to a
field of study. It comprises the theoretical analysis of the body of methods and
principles associated with a branch of knowledge. Typically, it encompasses
concept such as paradigm, theoretical model, phase and quantitative or
qualitative techniques.
For fulfilling the first objective of my study the comparative study of KARVY
STOCK BROKING Ltd. with their competitors. I have done analysis by taking
some of the major competitors of KARVY STOCK BROKING Ltd. On the
basis of services offered by them and brokerage charged by them to their
customer’s.
MAJOR COMPETITORS ARE AS FALLOW:-
 ANAND RATHI LTD.
 ANGEL BROKING LTD
 INDIA INFO LINE LTD.
 RELIGARE SECURITIES LTD.
 KOTAK SECURITIES LTD.
 RELIANCE CAPITAL LTD.
 ARIHANT CAPITAL LTD.
I have done analysis on the bases of various services offered by them:-
 Annual maintenance charges
 Intraday brokerages
 Delivery brokerages
 Margin money

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 Limits on Intraday and Delivery
 Account opening charges
By taking these services I have done comparison between KARVY STOCK
BROKING Ltd. with other stock broking firms. And given a ranking according
to best services offered by the firm’s.
COMPARISION OF KARVY WITH OTHER BROKERS
S.No COMPANY
NAME
AMC ACCOUNT
OPENING
CHARGES
MARGIN
MONEY
INTRADAY DELIVERY
1 INDIA
INFOLINE LTD.
50 750 25000 10 TIMES 5 TIMES
2 RELIGARE
SECURITIES
LTD.
500 350 10000 10 TIMES 4 TIMES
3 KARVY STOCK
BROKING LTD.
350 650 5000 8 TIMES 2 TIMES
4 ANGEL
BROKING LTD.
330 380 25000 7 TIMES 4 TIMES
5 SHAIRKHAN
STOCK
BROKING LTD.
400 500 10000 10 TIMES 2 TIMES
6 KOTAK
SECURITIES
LTD.
600 750 10000 5 TIMES 5 TIMES
7 ARIHANT
CAPITAL LTD.
407 660 25000 3 TIMES 3 TIMES
8 ANAND RATHI
LTD.
552 602 10000 2 TIMES 2 TIMES
9 RELAINCE
CAPITAL LTD.
500 500 10000 2 TIMES 2 TIMES

On comparing the above data KARVY STOCK BROKING Ltd is on 3rd rank
amongst all the stock broking firms.
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DIFFERENT CHARGES OF BROKING COMPANIES
S.N o Company Name Intraday Charges Delivery Charges
1 ANAND RATHI LTD. 0.02% 0.20%
2 INDIA INFOLINE LTD. 0.03% 0.25%
3
KARVY STOCK BROKING
LTD. 0.03% 0.30%
4 ARIHANT CAPITAL LTD. 0.03% 0.30%
5 ANGEL BROKING LTD. 0.03% 0.30%
6
SHAIRKHAN STOCK
BROKING LTD. 0.03% 0.30%
7 RELIGARE SECURITIES LTD. 0.03% 0.30%
8 KOTAK SECURITIES LTD. 0.03% 0.30%
9 RELAINCE CAPITAL LTD. 0.03% 0.50%
According to brokerage charge by the different broking firms KARVY STOCK
BROKING Ltd. also having nominal brokerage and RANK 3rd under it.
I have also found the potential customers for KARVY STOCK BROKING Ltd.
For which I have approach to various customers discuss oral interview that
interview based on following oral questions:
Those questions are:-
a. Why you have stopped trading with us?
b. What are the problems you are facing with us?
c. Would you like to buy/sell the securities?
d. Would you like to invest more money in Equity?

On the bases of these of these question I have found the potential customers for
KAARVY STOCK BROKING Ltd.
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LIST OF CUSTOMERS I HAVE TALK TO:
I have categorised these in to two option
a. Traded &
b. Not traded.

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CLIENT DATA
S.NO CLIENT NAME RESULT
TRADED NOT TRADED
1 ANKUR MORE TRADED
2 YOGESH KUMAR KARSH TRADED
3 UMESH KUMAR VISHWAKARMA NOT TRADED
4 ABHIJEET BISWAS NOT TRADED
5 JAYESH MORE NOT TRADED
6 HEMANT AGRAWAL NOT TRADED
7 HIMANSHU GOYAL NOT TRADED
8 PRADEEP YADAV NOT TRADED
9 YATAINDRA SINGH NOT TRADED
10 DASHRATH SINGH TRADED
11 SHAILENDRA UPADHYAY TRADED
12 MUKESH GIR TRADED
13 NADEEM PATEL TRADED
14 RACHIT JAIN NOT TRADED
15 RAHUL JAIN NOT TRADED
16 MOHSIN KHARWA NOT TRADED
17 ASHOK VERMA NOT TRADED
18 ANKUR SHORRY NOT TRADED
19 SUDARSHAN KUMAR NOT TRADED
20 SAHADEV KUMAR KARSH NOT TRADED
21 RENU JAIN NOT TRADED
22 GUNJAN ANAND NOT TRADED

23 SATYAKAM DUBE NOT TRADED
24 PRACHI SHINDE TRADED
25 VIRENDRA SHINDE TRADED
26 ALOK VYAS TRADED
27 SANJEEL JAIN TRADED
28 GAURAV AGRAWAL NOT TRADED
29 HARSHIT SHINDW NOT TRADED
30 VIVEK SINGH KUSHWAHA TRADED
31 JOHNY TOPPO NOT TRADED
32 RISHIVERMA NOT TRADED
33 ABHISHEK SHARMA NOT TRADED
34 ADITYA PATIDAR TRADED
35 PRANAV KELOTRA NOT TRADED
36 NOORUSSEHAR RIZVI TRADED
37 RAJESH KUMAR SINGH NON TARDED
38 HEMANT SHINDE NON TARDED
39 PRADEEP YADAV NOT TRADED
40 RAGHVENDRA SINGH NOT TRADED
41 AAZAD PATEL NOT TRADED
42 SUBHAM CHOURSIYA NOT TRADED
43 PRADEEP HALDKAR NOT TRADED
44 TILAK RAJ YADAV NOT TRADED
45 HEMENDRA YADAV TRADED
46 BHARAT BHUSHAN YADAV TRADED
47 SUDHIR KARODIWAL NOT TRADED
48 SHIV KUMAR SAHU NOT TRADED
49 HARSH JOSHI NOT TRADED
50 KAPIL GOYAL NOT TRADED
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51 AMIT KAPOOR TRADED
52 ASHISH MUDIRAJ TRADED
53 HARSH BHANDARI NOT TRADED
54 SALIL DIXIT NOT TRADED
55 PRAKHARPHADKE TRADED
56 VIJEET RANA NOT TRADED
57 ABHISHEK SINGH BAGHEL NOT TRADED
58 ANKIT SHARMA TRADED
59 DEEPAK TIWARI NOT TRADED
60 RAMAKANT GUPTA NOT TRADED
61 NISCHAY JAIN NOT TRADED
62 SHUBHANSHU NOT TRADED
63 VINEET KUMAR SINGH NOT TRADED
64 MANISH MISHRA NOT TRADED
65 VISHAKHA NEMA NOT TRADED
66 ANJALI SISODIYA NOT TRADED
67 AJAY BHATT NOT TRADED
68 MAYANK RATHORE NOT TRADED
69 ABDULLAH SHEKH NOT TRADED
70 GAURAV CHAURASIA TRADED
71 SANJEEV KUMAR NEMA NOT TRADED
72 TARIKA NANDEDKAR NOT TRADED
73 ARHAN SHRIVASTAVA TRADED
74 KALIICHARAN MODAK NOT TRADED
75 AMANDEEP SINGH TRADED
76 ANKUSH MANDOLI NOT TRADED
77 MADHU MAINA NOT TRADED
78 DEVENDRA VARATHE NOT TRADED
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79 NEERU MAINA TRADED
80 VEDANT SINGHAL NOT TRADED
81 SOM GOYAL TRADED
I have also make new customers for the KARVY STOCK BROKING Ltd. by
opening the Demat account. I have opened 17 demat account for KARVY
STOCK BROKING Ltd. which is also a part of my training.
LIST OF DEMAT ACCOUNT HOLDER OPENED DURING TRAINIGN:
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1 RAKESH LAXMI NARAYAN
2 ANUJ RATHORE
3 SUSHAMA KUSHWAH
4 DEEPAK KUMAR
5 SHAILENDRA YADAV
6 CHANDAN LOWANSHI
7 MINAKSHI RAJ
8 NEHA FATEHCHANDANI
9 DILIP PATIDAR
10 SWAPNIL HHUKLA
11 SAHIL AGRAWL
12 PANKAJ WADHWANI
13 MUSKAN AHUJA
14 MOHAMMED ANWAR
15 AYUSH YADAV
16 NARENDRA YADAV
17 PUSHPA YADAV
18 DHARYA BHUSHAN PAL

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MARKETING STRATEGY OF KARVY
A. Market Positioning:
Market positioning statements of Karvy are “At Karvy we give you single window service”
and “We also ensure your comfort”.
So, Karvy focus on the consumers who prefer almost all investment activities at same place
by providing number of various financial services. At Karvy a person can purchase or sell
shares, debentures etc. and at the same place also demat it. Karvy also provides other
investment option to the same person at same place like Mutual Fund, Insurance, Fixed
Deposit, and Bonds etc. and help the person in designing his portfolio. By this way Karvy
provides comfort to its customers.
Karvy is also positioned according to Ries and Trout. Karvy is promoted as a no. 1
investment product distributor and R & T agent of India.
Target Market:
Karvy uses demographic segmentation strategy and segment people based on their
occupation. Karvy uses selective specialization strategy for market targeting. Target person
for the Karvy Stock Broking and Karvy Investment Service are persons who can work as sub-broker
for the companies. Companies focus on Advisors of Insurance and post office, Tax
consultants and CAs for making sub-broker.
B. Marketing channel System:
Karvy uses one level marketing channel for investment product distribution. Sub-brokers
work as intermediary between consumer and company. Company has both forward and
backward flow of activity through channel. Company distributes stationery, brokerage, and
information forward to its sub-broker. The sub-brokers send filled forms, queries, amount of
investment etc. back to the company.

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C. Training Channel Members:
Karvy provides training to the sub-brokers because they will be viewed as the company by
the investors. The executives of Karvy explain various new schemes of investment to the sub-brokers
with its objective, risk factors and expected return. Company also periodically
arrange seminar to guide sub-brokers.
D. Advertising and Promotion:
The objective of advertising of Karvy is to create awareness about services of Karvy among
investors and sub-brokers and increase sub-brokers of Karvy.
Company doesn’t give advertisement in media like TV, Newspapers, and Magazines etc.
Karvy’s advertisement is made indirectly by the companies associate with it. Karvy is R & T
agent of around 700 companies. They publish name, address and logo of Karvy on their
annual report.
Karvy also publish its weekly Stock Market Newsletter ‘Karvy Bazaar Baatein’ and monthly
magazine ‘The Fin polis’ to guide investors and sub-brokers about market.

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HR POLICY OF KARVY
Karvy’s HR Department is located at Hyderabad.
1. Recruitment and Selection Policy:
The upper level members like zonal managers, regional managers, branch managers and
senior executives are recruited by publishing recruitment advertisement in leading national
level newspaper. The qualified applicant are then called for interview and selected.
The regional manager has authority to select lower level employee like peon, marketing
executives, accountant etc. by approval of zonal manager.
2. Training and Development:
Continuous training and upgrading technical, behavioural and managerial skills is a way of
life in Karvy. Karvy encourages employees to hone their skills regularly to enable them to
face the challenges of the changing requirements of customers that fit market up and down.
Training needs analysis is done on a regular basis and systematic methodologies are ensured
that skills and capabilities of all employees are constantly upgraded to enable them to
perform in the challenging work environment.
New employee has given training under experienced employee. The new employee work
under experience employee and observe his all activities. When company employs new
technology or there is any change in the working of company the training program is
arranged.
3. Employee Motivation:
Karvy’s employees are highly empowered. They don’t have to report any person of the same
branch but they report upper level branch. E.e. Marketing executive of Jamnagar branch
directly reports Senior Marketing executive of Baroda zonal office. If particular branch earn
certain profit then Karvy gives them special incentives. E.g. last year Karvy had arranged two
days tour of Div for their employees of Rajkot, Jamnagar, Junagadh and Bhavnagar branch
which was totally free of cost. This also helps in maintaining co-operation between
employees.

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NATIONAL LEVEL ORGANIZATION CHART
CM & MD
(Hyderabad)
GM
(Marketing) (Finance) (HRM)
Zonal Manager
Regional Manager
Branch Mgr. Branch Mgr. Branch Mgr.
Accountant Sr. Executives
Executives

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BRANCH LEVEL ORGANIZATION CHART
Branch Manager
Sr. Executive Executives Executive (Investment) (SB - 4) (IT)
Marketing Clerk
Executives-3
Executive
(Demat) Accountant

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Basic Requirement for doing Trading
Trading requires Opening a Demat account. Demat refers to a dematerialized account.
You need to open a Demat account if you want to buy or sell stocks. So it is just like a
bank account where actual money is replaced by shares. We need to approach the
Depository Participants (DP, they are like bank branches), to open Demat account.
A depository is a place where the stocks of investors are held in electronic form. The
depository has agents who are called depository participants (DPs).
Think of it like a bank. The head office where all the technology rests and details of all
accounts held is like the depository. And the DPs are the branches that cater to individuals.
There are only two depositories in India –
 The National Securities Depository Ltd (NSDL) and the
 Central Depository Services Ltd (CDSL).
Demat account

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Capital Market Participants
 Banks
 Exchanges
 Clearing Corporations
 Brokers
 Custodians
 Depositories
 Investors
 Merchant Bankers
Types of Investors
 Institutional Investors- MFs / FI / FIIs / Banks
 Retail Investors
 Arbitrageurs / Speculators
 Hedgers
 Day traders/Jobbers

Page | 33
CASH SEGMENT
Cash trading is an investment strategy that calls for the investor to make purchases of
securities on a cash basis only. This is different from the process of trading on margin, where
the investor makes use of a line of credit extended through a broker. With the cash trading
method, the investor relies solely on the balance of his or her cash account to purchase stocks,
bonds, commodities or other investment vehicles.
INTRADAY
Intraday trading refers to opening and closing a position in a security in the same trading day.
This can be buying and selling to capitalize on a potential rise in a security's value or shorting
and covering the short to capitalize on a potential drop in value. Intraday traders capitalize on
small moves in the value of a security by using "leverage" or "margin", which basically
means borrowing money.
Most day trading accounts are allowed to take an initial position in a security that is 4X the
value of their account (per securities regulations), but some professional accounts get more
leverage (i.e. 10X). For instance, a day trader with Rs.10,000 in his/her account can take a
Rs.40,000 position in a security for day trading purposes. This amount is not allowed to be
held overnight (only about 2X the value of the account can be held overnight per securities
regs). The leverage inherent in day trading allows small gains in a position to yield
meaningful profits (and losses). Most day traders are very strict about cutting losses with
"stop loss" orders. This limits the potential downside (but not the upside) on any particular
trade, hence the adage "cut your losses short and let your profits run". With this basic
strategy, a day trader can be wrong on 50% of his/her trades and still make good money. Day
trading styles vary from "scalpers", which take positions for only a few minutes, to holding a
position for most of the day. Some day traders are momentum followers and jump onto any
given move, while others try to identify intraday reversals. Virtually all day traders use
technical analysis (stock charting) heavily in their decision making.

Page | 34
DELIVERY
Delivery Trading is a very secure Trading. If we buy shares today and sell them after 1 day
then the type of trading is called as Delivery Trading. Share you bought in Delivery option
can be sold at any time before Market closes. I.e. up to 3.30 pm. If you buy shares With the
Delivery option, It will be taken as Delivery Trade only if you sell your shares after 1 day
(may be next day or after a month or after a year, 3 years whenever you sell after 1 day it is
called delivery Trading) In Delivery Trading, it will also allow you to sell your shares
within 1 day also (may be within 1 sec, 1 hour, Before market close). But if you sell the
shares which were bought with Delivery option within 1 day(may be within 1 sec, 1 hour,
Before market close) would not be taken as a Delivery Trading and would be taken as
Intraday Trading. All the brokerages for such Trade will be charged as per intraday
brokerage charges (0.02% to 0.04%). Therefore if buy a securities with Delivery Trading
option we can also sell it in Intraday.
The main advantage of Delivery Trading is that, the Loss of Fear of Money is very less
when compared with Intraday Trading.
The main disadvantage of Delivery Trading is that, the brokerage charged by Share Broking
Companies is very high for Delivery Trading. It is around 0.2% to 0.4%. And in this type of
Trade profit will increase slowly.
FUTURE
A financial contract obligating the buyer to purchase an asset (or the seller to sell an asset),
such as a physical commodity or a financial instrument, at a predetermined future date and
price. Futures contracts detail the quality and quantity of the underlying asset; they are
standardized to facilitate trading on a futures exchange. Some futures contracts may call for
physical delivery of the asset, while others are settled in cash. The futures markets are
characterized by the ability to use very high leverage relative to stock markets.
Futures can be used either to hedge or to speculate on the price movement of the underlying
asset. For example, a producer of corn could use futures to lock in a certain price and reduce
risk (hedge). On the other hand, anybody could speculate on the price movement of corn by
going long or short using futures

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OPTION
An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an
underlying asset at a specific price on or before a certain date. An option, just like a stock or
bond, is a security. It is also a binding contract with strictly defined terms and properties.
In finance, an option is a contract which gives the buyer (the owner) the right, but not the
obligation, to buy or sell an underlying asset or instrument at a specified strike price on or
before a specified date. The seller has the corresponding obligation to fulfill the transaction
– that is to sell or buy – if the buyer (owner) "exercises" the option. The buyer pays a
premium to the seller for this right. An option which conveys to the owner the right to buy
something at a specific price is referred to as a call; an option which conveys the right of the
owner to sell something at a specific price is referred to as a put.
A. CALL: - A call option is an option contract in which the holder (buyer) has the right
(but not the obligation) to buy a specified quantity of a security at a specified price
(strike price) within a fixed period of time (until its expiration).
For the writer (seller) of a call option, it represents an obligation to sell the underlying
security at the strike price if the option is exercised. The call option writer is paid a
premium for taking on the risk associated with the obligation.
B. PUT: - An option contract giving the owner the right, but not the obligation, to sell a
specified amount of an underlying asset at a set price within a specified time. The
buyer of a put option estimates that the underlying asset will drop below the exercise
price before the expiration date.

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FINANCIAL PERFORMANCE & POSITION
Karvy Financial Services Limited
Instrument Amount Rating Action (December 2013)
Long Term Bank Lines
Rs 1500 (enhanced from
750) crores
[ICRA]A+(SO) with stable
outlook ( Assigned )
NCD Programme Rs 50 crores
[ICRA]A with stable outlook
Reaffirmed
Principal Protected
NCD Programme
Rs. 75 crores
PP-MLD[ICRA]A with stable
outlook reaffirmed
Short Term Debt
Rs 300 (enhanced from Rs
200 crs)
[ICRA]A1+(SO) (assigned)
THE FINANCIAL PERFORMANCE OF PORFOLIO MANAGER
(BASED ON AUDITED FINANCIAL STATEMENTS)
PARTICULAR AS AT 31ST
MARCH 2013
RS IN LACS
AS AT 31ST
MARCH 2012 RS
IN LACS
AS AT 31ST
MARCH 2011 RS
IN LACS
SOURCE OF FUND
SHAREHOLDERS FUND
SHARE APPLICATION
MONEY
LOAN FUND
DEFERRED TAX
LAIBLITY
35,248.15
174.20
58,022.84
-
34,865.56
174.20
23,030.85
33,827.10
174.2
3,434.70
-
TOTAL 91,445.19 58,070.61 37,436.00

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APPLICATION OF FUND
NET FIXED ASSETS
STOCK EXCHANGE
MEMBERSHIP CARD
INVESTMENTS
15,992.06
15.75
17,392.55
18,149.00
21.00
18,002.92
17,651.43
26.25
15,670.02
CURRENT ASSETS
LESS: CURRENT
LAIBILITY AND
PROVISIONS
NET CURRENT ASSETS
DEFERRED TAX ASSET
73,824.32
15,908.43
57,915.89
128.94
44,954.71
23,228.74
21,725.97
171.76
33,024.30
28,984.70
4,039.60
48.70
TOTAL 91,445.19 58,070.61 37,436.00

SUMMARIZED FINANCIAL STATEMENT- PROFIT AND LOSS
Page | 38
ACCOUNT
FOR THE
YEAR ENDED
31ST MARCH
2013
FOR THE
YEAR ENDED
31ST MARCH
2012
FOR THE
YEAR ENDED
31ST MARCH
2011
TOTAL INCOME
TOTAL EXPANSES
PROFIT BEFORE DEPRICATION
AND TAX
DEPRICATION/AMORTISATION
PROFIT BEFORE TAX
PROVISION FOR TAX
PROFIT AFTER TAX
25,658.97
24,086.7
1,572.26
1,146.87
425.39
42.81
382.58
24,105.18
21,200.72
2,904.47
1,288.22
1,616.24
(577.77)
1,038.47
26,415.53
20,176.86
6,238.68
1392.88
4,845.79
1,625.75
3,220.04

NOW KARVY GROUP CONSISTS OF 11 HIGHLY RENOWED
Page | 39
ENTITIES WHICH ARE AS FOLLOW:
1. KARVY CONSULTANTS LIMITED:
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 Admire’ Registrar is one among many of the acknowledgement we receive for our
customer friendly and competent services.
2. KARVY STOCK BROKING LIMITED:
Karvy stock broking ltd. Consists of five units namely stock broking services,
depository participant, advisory services, distribution of financial products, advisory services
and private client groups.
3. KARVY INVESTOR SERVICES LIMITED:
It is registered with SEBI as a category 1 merchant banker. Its clientele includes
leading corporate, state government, foreign institutional investors, public and private sector
companies and banks, in India and global markets.

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4. KARVY INSURANCE BROKING LIMITED:
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.
5. KARVY:
The company provides investment, advisory and brokerage services in India
Commodities Markets. And most importantly, it offer a wide reach through our branch
network of over225 branch located across 180 cities.
6. KARVY GLOBAL SERVICES:
Karvy global is a leading business and knowledge process outsourcing Services Company
offering creative business solution to client globally. It operation in banking and financial
services, insurance, healthcare and pharmaceuticals, media, telecom and technology. It has its
sales and business development office in New York, USA and the offshore global delivery
centre in Hyderabad, India.

7. Karvy Realty(India) limited: Karvy Realty (India) Limited is engaged in the
Page | 41
business of real estate and property services offering:
 Buying/ selling/ renting of properties
 Identifying valuable investment opportunities in the real estate sector
 Facilitating financial support for real estate and investment in properties
 Real estate portfolio advisory services
8. Karvy Computershare private limited: 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 Admire Registrar” for its overall excellence in volume
management, quality process and technology driven services.
9. KARVY DATA MANAGEMENT SERVICES LIMITED: 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.

10. KARVY FORTUNE: 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, Remises, E- Franchisee or as an Independent Financial
Advisors.
11. KARVY THE FINAPOLIS: 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 customers pertaining to
personal finance. With India emerging as a strong market, the investments avenues
have also increased, to advices 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 solution and thereby enabling them to
transform their dreams into reality”
Page | 42

Page | 43
COMPETITOR’S OF KARVY
A diversified financial services group with a pan-India presence and presence in multiple
international locations, Religare Enterprises Limited (REL) offers a comprehensive suite of
customer- focused financial products and services targeted at retail investors, high net worth
individuals and corporate and institutional clients.
REL, along with its joint venture partners, offers a range of products and services in
India, including asset management, life insurance, wealth management, equity and
commodity broking, investment banking, lending services, private equity and Mutual Fund.
With a view to expand and diversify, REL operates in the life insurance space under
“AEGON Religare Lige Insurance Company Limited” and has launched India’s first wealth
management joint venture the brand name “Religare Macquarie Private Wealth”.
REL operates from seven domestic regional offers, 43 sub-regional offices, and has a
presence in 498 cities and town controlling 1837 business location all over India.
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 Fund, Life Insurance, Fixed deposits. GOI bonds and others
small saving instrument to loan products and Investment banking. India Infoline also owns
and manages the websites www.indiainfoline.com and www.5paisa.com . The company has a
network of 976 business location (branch and sub-brokers) spread across 365 cities and
towns. It has more than 800,000 customers.

Reliance Money, a Reliance Capital Company and part of the Reliance Anil DHIRUBHAI
AMBANI Group is a comprehensive financial services and solution provider. It is a one-stop-shop,
providing end-10-end financial solutions. It has the largest non-banking distribution
channel with over 10000 outlets and 20000 touch points spread across 5165 cities/towns;
catering to the diverse needs of over 3 million existing customers.
Reliance Money endeavours to change the way investors transact in financial market and
avails financial services. It provides customers with access to Equity and commodity
Derivatives, offshore investment, portfolio management services wealth management
services, investment Banking, Mutual Fund, IPO’s, Life and General insurance products and
Gold Coins. Customers can also avail Loans, Credit Card etc.
Kotak Securities ltd. 100 % subsidiary of Kotak Mahindra Bank is one of the oldest and
largest broking firms in the Industry. Kotak Securities offers include stock broking through
the branch and Internet, Investment in IPO. Mutual Fund and Portfolio management services.
Kotak Securities is also a depository participant with National Securities Depository Limited
(NSDL) and Central Depository Services Limited (CDSL), Kotak process more than 400000
trades a day which is much higher even than some of the renowned international brokers. The
Network of Kotak Securities spans over 331 cities with 843 outlets.
Kotak Securities Limited has Rs. 2599 crore of Assets under Management (AUM).
The portfolio Management services provides top class services, catering to the high end of
the market. Portfolio Management from Kotak Securities comes as an answer to those who
would like to grow exponentially on the crest of the stock market, with the backing of an
expert.
Page | 44

Page | 45
FINDINGS
After conducting the personal interview. I reached at a particular point. The major findings
about related information of karvy are described as below:-
1. In a single roof, we found that Karvy Stock Broking Ltd. is not only facilitating stock
broking services to their customers but also different other financial services are being
provided to the customers such as Mutual fund, Insurance, Commodities, DP,
Merchant & Inv. Banking etc.
2. The financial product of KSBL has good credibility as compared to its competitors.
The objective of the company is not only to facilities better services to the customers
but also to built-up long term mutual relationship.

Page | 46
CONCLUSION & SUGGESTION
While doing my summer internship program I came to a conclusion that this training has
helped me much in getting the thorough knowledge about some of the stock broking
companies, how these companies are competing against each other for getting the more
market share, how they are applying different marketing strategies to attract customers and
making them satisfied.
I came to know about the demat account, its benefits, how does it provides services
the customers of which I was totally ignorant when I started my project.
I gathered much more knowledge about Karvy Stock Broking Ltd. Its services, its
strategies, and how every employees of it work hard to achieve the organizational goal I.e.
achieve the maximum market share through customer satisfaction.
 One thing that I noticed during my field work that many people of INDORE not
much more awarded about the various financial products and services of Karvy
which had to be there. They are ignorant about demat account and lack of
knowledge and information about it scared them of investing money in share
market. So to generate awareness among them advertising campaign can result
in fruitful results. Only a limited percentage of people are enjoying investing
money in share market in INDORE.
 Lastly and not the least as a coin has two sides, Karvy has favourable and
unfavourable aspects. The favourable aspect is that it provides lot of benefits to
its customers which some of its competitors fail to provide and again less
awareness about it among people is its negative side which hinders them to
invest their fund confidently.

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BIBLIOGRAPHY
 www.karvy.com
 www.religaresecurities.com
 www.indiainfoline.com
 www.relaincemoney.com
 www.kataksecurities.com
 www.bseundia.com
 www.nseindia.com
 www.moneycontrol.com

Summer Internship report on Comparative study of karvy with other brokers by Ayush yadav

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Summer Internship report on Comparative study of karvy with other brokers by Ayush yadav