SUMMER TRAINING PROJECT REPORTON

“COMPARATIVE ANALYSIS OF STOCK BROKERS IN DELHI REGION”

AT

In partial fulfillment for the degree ofPost Graduate Diploma in Management (PGDM)

(SESSION 2009-11)

Submitted To: Submitted By: Prof. Y.L. GROVER RAM BALI YADAV Director General PGDM (2009-11) Roll No. 109317

DECLARATION

I’m Ram Bali Yadav, a student of Management Education & and

Research Institute New Delhi, Which is approved by AICTE,

declare that the project entitled “Comparative Analysis Of

Stock Brokers In Delhi Region” at Karvy Stock Broking

Ltd. , is the original work done by me and the information

provided in the study is authentic to the best of my knowledge.

Place: Signature:

Ram Bali Yadav PGDM 3rd Semester (2009-11) Finance & Marketing

TABLE & CONTENTS

PAGE

1. ACKNOWLEDGEMENT ……………..………………………………………….. 5

2. EXECUTIVE SUMMARY…...……………………………………………………. 6

3. INTRODUCTION OF COMPANY………………………………………………....7

4. BACKGROUND……………………………………………………...………………8-14

KARVY’S MISSION……………………………………………..….91. KARVY’S VISION……………………………………….……….…92. KEY PERSONS……………………………………………….…......10-113. KARVY MILESTONES…………………………………………......124. KARVY CREDO……………………………………………………..135. QUALITY POLICY……………………………………………...…..14

5. KARVY VALUES………………………………………………………………...…...15

6. ACHIVEMENTS………………………………………………………………….......16

7. KARVY WINGS………………………………………………………………....……17-20

1. KARVY CONSULTANTS LIMITED………………………...…....172. KARVY INVESTOR SERVICES LIMITED……………….......…173. KARVY COMPUTERSHARE PRIVET LIMITED………...…….184. KARVY GLOBAL SERVICES LIMITED………………...………185. KARVY COMTRADE LIMITED……………………………….….196. KARVY INSURANCE BROKING LIMITED…………………….197. KARVY STOCK BROKING LIMITED…………………...………19

8. BACKGROUND OF STOCK EXCHANGE IN INDIA……………………..……..21-23

1. STOCK BROKERS…………………………………….……………222. SUB-BROKERS……………………………………..……………….233. MARKET MAKERS……………………………..………………….234. PORTFOLIO CONSULTANTS…………...………………………...23

9. PRODUCTS AND SERVICES OFFER BY KARVY……………………………….24-49

1. STOCK BROKING…………………………………………………..25 2. D-MAT SERVICES…………………………………………………..253. DERIVATIVE SERVICES…………………………………………..254. INVESTMENT PRODUCT DISTRIBUTION……………………..26 5. INVESTMENT ADVISORY SERVICES…………………………...296. CORPORATE FINANCE AND MERCHANT BANKING…….....307. INCOME TAX ENABLE SERVICES………………………………308. REGISTRARE & TRANSFER AGENTS…………………………...329. LOANS………………………………………………………………...3210. EQUITY TRADING PLATEFORM…………………………………33-3711. MUTUAL FUNDS…………………………………………………….38-4312. INSURANCE………………………………………………………….44-45

10. MAJOR PLAYERS IN THE REGION……………………………………………...46-521. KARVY………………………………………………………………...462. INDIAINFOLINE……………………………………………………...473. ICICI DIRECT………………………………………………………...484. HDFC SECURITY……………………………………………………..495. INDIABULLS………………………………………………………….506. SHARE KHAN………………………………………………………...52

11. RESEARCH METHODOLOGY……………………………………………………..53-56

12. COMPARATIVE ANALYSIS………………………………………………………...57-59

13. FINDING AND ANALYSIS…………………………………………………………..60-68

14. SUGGESTIONS……………………………………………………………………….69

15. LIMITATION………………………………………………………………………….70

16. CONCLUSION………………………………………………………………………...71

17. APPENDIX (Questionnaire)…………………………………………………………...72-73

18. BIBLIOGRAPHY………………………………………………………………………74

ACKNOWLEDGEMENT

I would like to convey my heartiest gratitude to several people, for their support and guidance which helped me complete my Summer Internship. First and foremost I would like to thank Karvy Stock broking Limited, New Delhi, for giving me an opportunity to do my internship in their esteemed organization. My special appreciation extends to the Zonal Head Mr. Asutosh Sir for his constant encouragement throughout this period. I also extend my gratitude to my Guide at KARVY, Cluster Head Mr. Ranjeet Rawat and Personal Financial Advisor Kamalesh Kumar Yadav, who instructed us with the work procedures and dealt with us with patience at all times. This internship would not be complete without the support of our Director Genaral Mr. Y L Grover. I would also like to thank placement head Mr. karnol Avatar Singh & our Internship Co-ordinators, Prof. K K Sharme for their guidance and unflinching support throughout the phases of my Internship. I also thank Dean A K Agrawal for his insightful knowledge, patience and encouragement which gave me the strength and power to perform my best. My special thanks to my co-students and dear friends Mr. Shailesh, Shashi Kumar, Lokesh Jain & Pratik Raj who being a part of the same internship, supported me throughout my Internship and with whose help I could complete my work efficiently and effectively. Their consistent help kept me motivated and going. Last but not the least, my endless appreciation goes to my family who has stood by my side and given me moral support whenever I was low and boosted my will power.

EXECUTIVE SUMMARY

There is growing competition between brokerage firms in post reform India. For investor it is always difficult to decide which brokerage firm to choose.Research was carried out to find which brokerage house people prefer and to figure out what people prefer while investing in stock market. This study suggest that people are reluctant while investing in stock and commodity market due to lack of knowledge Main purpose of investment is returns and liquidity, commodity market is less preferred by investors due to lack of awareness. The major findings of this study are that people are interested to invest in stock market but they lack knowledge. Through this report we were also able to understand, what are our Company’s (Karvy) positive and strong points, on the basis of which we come to know what can be the basis of pitching to a potential client. We also gave suggestions to the company, what improvement can be done to our product. My Internship consisted of the On Job Training as A Seals Manager. The best learning experience was that I started from the very basics of getting to that position and not from the position itself. This helped me get useful insight and understanding of various financial products, the market details about them and the benefits provided by them to the customers. Emphasis was given in analysis of the investor behavior of the clients. Another interesting fact was that all these products were suggested to clients not just based on their market performance and returns, but on the client’s financial condition as well as their risk taking capacity. Training sessions were held to give me insights about the various products that KARVY STOCKBROKING deals in like: Mutual Funds, Insurance and Bonds. Presentations on the same after self study and analysis were a part of this internship session. I provided financial advice and suggestions to the investors for mutual funds which may prove prudent to them. For other products I studied the client’s investing behavior and assisted the

wealth manager, who decided the investment options and designed the portfolios.

INTRODUCTION OF THE COMPANY

KARVY is 1st register and a premier integrated financial services provider and ranked among the top five in the country in all its business segments. It services over 16 million individual investors in various capacities and provides investor services to over 300 corporates, comprising who is who of Corporate India.It is a member of :-

National Stock Exchange (NSE) Bombay Stock Exchange (BSE) Multiple Commodity Exchange(MCX) National Commodity and Derivative Exchange(NCDEX)

Karvy utilized its experience and superlative expertise to capitalize on its strengths and better its service, innovate and provide new ones. It diversified in the process and thus evolved as India’s premier integrated financial service enterprise. Karvy has been a customer centric company since its inception. It offers asingle platform servicing multiple financial instruments in its bid to offer complete financial solutions to the varying needs of both corporate and retail investors, where an extensive range of services are provided with great volume-management capability. KARVY covers the entire spectrum of financial services such as Stock broking, Depository Participants, Distribution of financial products - mutual funds, bonds, fixed deposit, equities, Insurance Broking, Commodities Broking, Personal Finance Advisory Services, Merchant Banking & Corporate Finance, placement of equity, IPOs, among others. Karvy has a professional management team and ranks among the best in technology, operations and research of various industrial segments.

BACKGROUND

The flagship company, Karvy Consultants Limited was found with the vision and enterprise of a group of practicing Chartered Accountants on a modest scale in 1981 in Hyderabad at initial stage it was very small in size. It was started with a capital of Rs. 1,50,000, where it now has 13 branches. It initiated with just one activity and later carved roads into fields of registry and share accounting as well. From then there was no stopping at all. A decade of commitment, professional integrity and vision helped Karvy achieve a leadership position in its field. It is known to handle the largest number of issues ever in the history of the Indian stock market in a particular year. Thereafter, Karvy made inroads into a host of capital market services, corporate and retail which proved to be a sound business synergy. Today Karvy has access to millions of Indian shareholders, besides companies, banks, financial institutions and regulatory agencies. Over the past one and half decades, Karvy has involved as a veritable link between industry, finance and people. In January 1998, Karvy became the first Depository Participant in Andhra Pradesh. An ISO 9002 company, Karvy’s commitment to quality and retail reach has made it an integrated financial services company. 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 cities.

Karvy’s Mission:

“ Our mission is to be a leading and preferred service provider to our customers, and we aim to achieve this leadership position by building an innovative, enterprising, and technology driven organization which will set the highest standards of service and business ethics ”.An organization exists to accomplish something or achieve something. The mission statement indicates what an organization wants to achieve. The mission statement may be changed periodically to take advantage of new opportunities or respond to new market conditions. Karvy’s mission statement is “To Bring Industry, Finance and People together.”Karvy is work as intermediary between industry and people. Karvy work as investment advisor and helps people to invest their money same way Karvy helps industry in achieving finance from people by issuing shares, debentures, bonds, mutual funds, fixed deposits etc.Company’s mission statement is clear and thoughtful which guide geographically dispersedemployees to work independently yet collectively towards achieving the organization’s goals.

Vision of Karvy

Company’s vision is crystal clear and mind frame very directed. “To bepioneering financial services company. And continue to grow at ahealthy pace, year after year, decade after decade.” Company’sforay into IT-enabled services and internet business has provided an

opportunity to explore new frontiers and business solutions. To build acorporate that sets benchmarks for others to follow.

KEY PERSONS

Mr. C Parthasarathy, a leader in the financial services industry in India is responsible for building KARVY as one of India's truly integrated Financial Services Provider; he is a fellow member of the Institute of Company Secretaries of India, a Fellow Member of the Institute of Chartered Accountants of India and a graduate in law.As Chairman and Managing Director, he oversees the group's operations and renders vision and business direction.

His passion and vision for achieving leadership in the business made KARVY a leading financial intermediary ranking them as number one in the registrar, Share Transfer and IPO Distribution businesses. He also holds directorship in KARVY Securities Limited, KARVY Stock Broking Limited, KARVY Investor Services

Limited, KARVY Computershare Private Limited, KARVY Commodities Broking Private Limited, EPR Pharmaceuticals Private Limited and Ocean Sparkles Limited.

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

Mr. M S Ramakrishna, Director, founder member of KARVY Consultants Limited is the orchestrator of technology initiatives such as the call center in the service of the customer. Mr. Ramakrishna is a member of the Hyderabad Stock Exchange and is the director of KARVY Securities Limited, KARVY Stock Broking Limited, KARVY Investor Services Limited, KARVY

Computershare Private Limited, KARVY Commodities Broking Private Limited, Nitya Labs Limited and SAB Nife Power Systems Limited. He has helped KARVY diversify into the field of medical transcription leveraging on the company's core competency of transaction processing. He has more than 20 years of experience in the financial services arena.

KARVY MILESTONES

Karvy has traveled a success route over the past 25 years and positioned itself as an emerging financial service giant in which embeds the confidence and support of enviable patrons across the financial world. Patrons are also of diversified fields which includes over 16 million individual investors in various capacities and 300 corporates comprising the best out of the whole lot .Years of experience of holistic financial services and expertise in this industry has helped it gain the status it enjoys and cherishes today.(Karvy.com)

KARVY CREDO

Following are the system of principles or beliefs followed by KarvyGroup.“Our Clients, Our Focus”“Clients are the reason for our being”Personalized service, professional care; pro-activeness are the values thathelps KARVY nurture enduring relationships with their clients.

Teamwork

“None of us is more important than all of us”

Each team member is the face of Karvy. Together they offer diverse services with speed, accuracy and quality to deliver only one product: excellence. Transparency, co-operation, invaluable individual contribution for a collective goal, and respect for individual uniqueness within a corporate whole, is what KARVY aims at.

Responsible Citizenship“A social balance sheet is as rewarding as a business one.”As a responsible corporate citizen, KARVY believes that its duty is to foster a better environment in the society where they live and work. To abide by its norms, and to behave in a responsible manner towards the environment, are some of its growing initiatives towards realizing this.

Integrity“Everything else is secondary”

Professional and personal ethics are Karvy’s bedrocks. They take pride inbuilding an environment that encourages honesty and opportunity to learnfrom failures than camouflage them. They insist on consistency between work and actions.

QUALITY POLICY:

To achieve and retain leadership, Karvy aims for complete customer satisfaction, by combining its human and technological

resources, to provide superior quality financial services. In the process, Karvy strives toexceed Customer's expectations.

As per the Quality Policy, Karvy will:

Build in-house processes that will ensure transparent and harmonious relationships with its clients and investors to provide high quality of services.

Establish a partner relationship with its investor service agents and vendors that will help it in keeping up to its commitments to the customers.

Provide high quality of work life for all its employees and equip them with adequate knowledge & skills so as to respond to customer's needs.

Continue to uphold the values of honesty & integrity and strive to establish unparalleled standards in business ethics.

Use state-of-the art information technology in developing new and innovative financial products and services to meet the changing needs of investors and clients.

Strive to be a reliable source of value-added financial products,

services and constantly guide the individuals and institutions in making a judicious choice of same.

Strive to keep all stake-holders (shareholders, clients, investors,

employees, suppliers and regulatory authorities) proud and satisfied.

Karvy Values

Integrity

Responsibility

Reliability

Unity

Understanding

Excellence

Confidentiality

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

ACHIEVEMENTS

Among the top 5 stock brokers in India (4% of NSE volumes)

First ISO - 9002 Certified Registrar in India

India's No. 1 Registrar & Securities Transfer Agents

Handled over 500 Public issues as Registrars

Among the top 3 Depository Participants

Largest Network of Branches & Business Associates

Among top 10 Investment bankers

Largest Distributor of Financial Products

Adjudged as one of the top 50 IT uses in India by MIS Asia

Full Fledged IT driven operatio

Handling the Reliance Account which accounts for

nearly 10 million account holders

KARVY WINGS

As discussed earlier, KARVY offers a single platform servicing multiple financial instruments in its bid to offer complete financial solutions to the varying needs of both corporate and retail investors. The range of products and services are provided by the following wings.

This is the flagship company of Karvy Group and it controls the organizational affairs, channels of progress, work affairs and pioneering business policies. This was the first business the KARVY group ventured into, but now they have transferred it into a joint venture with computer share limited of Australia, the world’s largest registrar. This company services around 6 lakh customer accounts in a spread of 250 cities/towns in India.

This wing of Karvy is registered with SEBI as a category 1 merchant banker and is also recognized as a leading merchant banker of the country. It has built its reputation by capitalizing the opportunities as and when it comes, beit in corporate consolidations, mergers and acquisitions or corporate restructuring. Involvement in raising resources for corporate or government undertaking successfully over the past two decades has given it a tremendous confidence boost.

This wing of Karvy has traversed wide spaces to tie up with the world’s largest transfer agent, the leading Australian company Computershare Limited. This company services more than 75 million shareholders across 7000 clients and makes its presence felt in over 12 countries across 5 continents. It has also entered into a 50-50 joint venture with Karvy. After transferring completely to this new entity it has tried to enrich the financial services industry as a whole. The worldwide network of Computershare helps it to adapt to the international standards in addition to leveraging the best technologies from all over the world.

This is a specialist Business Process Outsourcing unit of the Karvy Group. The legacy of experience in financial services of Karvy Group acts as a big support for entering the global arena with confidence of delivering the best. This wing offers several models on the understanding of business needs that are unique and therefore only a customized service could possibly fit the bill. Their service matrix has permutations and combinations that create several options to choose from. Its Services meet the most stringent International standards, be it re-engineering and managing processes or delivering new efficiencies.

Karvy Commodities focuses on taking commodities trading to new dimensions of reliability and profitability. They have made commodities trading, an essentially age-old practice, into a sophisticated and scientific investment option. It helps in enabling trade in all goods and products of agricultural and mineral origin that include lucrative commodities like gold and silver and popular items like oil, pulses and cotton through a well-systematized trading platform.

Karvy Insurance Broking Pvt. Ltd., provides both life and general insurance products to retail individuals, high net-worth clients and corporate. With the opening up of the insurance sector and entry of a large number of private players in the business, it is in a position to provide tailor made policies for different segments of customers.

KARVY STOCK BROKING LIMITED (KSBL)It is undisputable fact that the stock market is unpredictable and volatile, but despite this KSBL enjoys a high success rate as a wealth management option. Karvy Stock Broking Limited offers services that are much beyond serving just as a medium for buying and selling stocks and shares. Instead it provides multi dimensional and multi focused services. It offers trading facilities for National Stock Exchange, Bombay Stock Exchange and Hyderabad Stock Exchange and tries to make trading safe to maximum possible extent. For this they are assisted by their in depth research team for constant feedback and sound advices.

The Finapolis is the monthly magazine that is published by this wing. It analyzes the latest stock market trends and takes a close look at the various investment options and products available in the market. A weekly report, called Karvy Bazaar Baatein, keeps people informed on the immediate trends in the stock market. In addition, the specific industry reports give more comprehensive information on various industries. It also offers special portfolio analysis packages that provide daily technical advice on scrips for successful portfolio management. It provides customized advisory services to help the client make right financial moves which specifically suits their portfolios

BACKGROUND OF STOCK EXCHANGE ININDIA

The emergence of stock market can be traced back to 1830. In Bombay, business passed in the shares of banks like the commercial bank, the chartered mercantile bank, the chartered bank, the oriental bank and the old bank of Bombay and shares of cotton presses. Between 1840 and 1850, only half a dozen brokers existed for the limited business. But during the share mania of 1860-65, the number of brokers increased considerably. By 1860, the number of brokers was about 60 and during the exciting period of the American Civil war, their number increased to about 200 to 250. The end of American Civil war brought disillusionment and many failures and the brokers decreased in number and prosperity. It was in those trouble some times between 1868 and 1875 that brokers organized an informal association and finally as recited in the Indenture constituting the “Articles of Association of the Exchange”. On or about 9th day of July,1875, a few native brokers doing brokerage business in shares and stocks resolved upon forming in Bombay an association for protecting the character, status and interest of native share and stock brokers and providing a hall or building for the use of the members of such association. As a meeting held in the broker’ Hall on the 5th day of February, 1887, it was resolved to execute a formal deal of association and to constitute the first managing committee and to appoint the first trustees. Accordingly, the Articles of Association of the Exchange and the Stock Exchange was formally established in Bombay on 3rd day of December, 1887. The Association is now known as “The Stock Exchange”. The entrance fee for new member was Re.1 and there were 318 members on the list, when the exchange was constituted. The numbers of members increased to 333 in 1896, 362 in 1916and 478 in 1920 and the entrance fee was raised to Rs.5 in 1877, Rs.1000 in 1896, Rs.2500 in 1916 and Rs. 48,000 in 1920. At present there are 23 recognized stock exchanges with about 6000 stock brokers. Organization structure of stock exchange varies. 14 stock exchanges are organized as public limited companies, 6 as companies limited by guarantee and 3 are non-profit voluntary organization. Of the total of 23, only 9 stock exchanges have been permanent recognition. Others

have to seek recognition on annual basis. These exchange do not work of its own, rather, these arerun by some persons and with the help of some persons and institution. All these are down as functionaries on stock exchange. These are

1. Stockbrokers2. sub-broker3. market makers4. Portfolio consultants etc.

1.) Stockbrokers

Stock brokers are the members of stock exchanges. These are the persons who buy, sell or deal in securities. A certificate of registration from SEBI ismandatory to act as a broker. SEBI can impose certain conditions while granting the certificate of registrations. It is obligatory for the person to abide by the rules, regulations and the buy-law. Stock brokers are commission broker, floor broker, arbitrageur etc.

Detail of registered brokers

Total no. of registor Brokersas on 31march 2008

Total no. of Sub-brokersAs on 31 march 2008

9,000 24,000

2.) Sub-broker

A sub-broker acts as agent of stock broker. He is not a member of a stock exchange. He assists the investors in buying, selling or dealing in securities through stockbroker. The broker and sub-broker should enter into an agreement in which obligations of both should be specified. Sub-broker must be registered SEBI for a dealing in securities. For getting registered with SEBI, he must fulfill certain rules and regulation.

3.) Market Makers

Market maker is a designated specialist in the specified securities. They make both bid and offer at the same time. A market maker has to abideby bye-laws, rules regulations of the concerned stock exchange. He is exempt from the margin requirements. As per the listing requirements, a company where the paid-up capital is Rs. 3 crore but not more than Rs. 5 crore and having a commercial operation for less than 2 years should appoint a market maker at the time of issue of securities.

4.) Portfolio consultants

A combination of securities such as stocks, bonds and money market instruments is collectively called as portfolio. Whereas the portfolio consultants are the persons, firms or companies who advise, direct or undertake the management or administration of securities or funds on behalf of their clients. Partial fulfillment for degree of PGDM programmed, we received the opportunity from KARVY LTD for our summer training project report. It is basically a stock brokering company which deals in security and derivative market, Commodity market, mutual funds and Insurance etc.

PRODUCTS & SERVICES OFFERED BY KARVY

1- Stock broking

2- D-mat services

3- Derivative Services

4- Investment product distribution

5- Investment advisory services

6- Corporate finance & Merchant banking

7- Income Tax enabled services

8- Registrars & Transfer agents

9- Loans

10- Equity Trading Platform

11- Mutual Fund Advisory and Distribution

12- Insurance Distribution..

13- Commodities Trading Platform

14- Portfolio Management Service.

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. D-mat 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 Depo\-9sitories 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-Derivative Concept

As the name suggests, derivative is a financial instrument that offers a return based on the return of some other underlying asset. In this sense, its return is derived from another instrument. The definition states, a derivative's performance is based on the performance of an underlying asset. This underlying asset is often

referred to simply as the underlying. It trades in a market in which buyers and sellers meet and decide on a price; the seller then delivers the asset to the buyer and receives payment. The price for immediate purchase of the underlying asset is called the cash price or spot price.A derivative also has a defined and limited life: A derivative contract initiates on a certain date and terminates on a later date. Often the derivative's payoff is determined and/or made on the expiration date, although that is not always the case. In accordance with the usual rules of law, a derivative contract is an agreement between two parties in which each does something for the other. In other words, no money need change hands up front.

Types of Derivatives

Over-the-counter (OTC) derivatives are contracts that are traded (and privately negotiated) directly between two parties, without going through an exchange or other intermediary. Products such as swaps, forward rate agreements, and exotic options are almost always traded in this way. The OTC derivatives market is huge.

Exchange-traded derivatives are those derivatives products that are traded via specialized Derivatives exchanges or other exchanges. A derivatives exchange acts as an intermediary to all related transactions, and takes Initial margin from both sides of the trade to act as a guarantee.

There are 3 kinds of Derivative contracts:

Futures Contract Forward Contract Options Contract

4. 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. Company is dealer of following Fixed Deposits

PUBLIC SECTOR

Sl. No. Company Name

1 HUDCO2 Sarder sarovar Narmada Nigam Ltd.3 Tamilnadu Power Finance Corporation Ltd.

4 NTPC

[Table1: Public Sector FD with which Karvy deals]

NON BANKING FINANCE COMPANIES

Sl. No. Company Name

1 Ashok Leyland Finance Ltd.

2 Bajaj Auto Finance Ltd.

3 Birla Home Finance Ltd.

4 Cholamandalam Investment & Finance Co. Ltd.

5 Escort Finance Ltd.

6 First Leasing Company of India Ltd.

7 IDBI Suvidha

8 Nicco Uco Alliance Credit Ltd.

[Table2: FD of Non Banking Finance Companies with which Karvy deals]

HOUSING FINANCE COMPANIES

Sl. No. Company Name

1 Can Fin Homes Ltd.2 Dewan Housing Finance Corporation Ltd.3 Gruh Finance Ltd.4 HDFC Ltd.5 PNB Housing finance Ltd.6 Sundaram Home Finance Ltd.

[Table3: FD of Housing Finance Companies with which Karvy deals]

MANUFACTURING COMPANIESSl. No. Company Name1 A P Paper Mills Ltd.2 Amtek Indian Ltd.3 Atul Ltd.4 Ballarpur Industries Ltd.5 Chambal Fertilizers & Chemical Ltd.

6 Escort Ltd.

7 Greaves Ltd.

8 Indian Express9 Ind-Swift Ltd.10 J k Industries Ltd.11 Gujarat Alkalies & chemical Ltd.12 Jindal Steel & Power Ltd.13 Supreme Industries Ltd.

14 Sound Craft Industries Ltd.15 Zauri Industries Ltd.

(b). Bonds:

Karvy is dealer of following bonds RBI Saving Bonds NHB 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.

5. 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,

Investor’s willingness to take risk, Investor’s tax planning etc.

6. 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

7. 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.

TIN Overview

National Securities Depository Ltd. (NSDL) has established a nationwide Tax Information Network (TIN) on behalf of the Income Tax Department (ITD). This is designed to make the tax administration more effective, furnishing of returns convenient, reduce compliance cost and bring greater transparency. While NSDL will be the primary agency responsible for the design, implementation and maintenance of TIN as per the requirements of ITD, other agencies will also play key roles in the TIN system. Karvy has established infrastructure required to provide IT enabled services so, Karvy provides TIN facilitation centers all over India on behalf of NSDL. Besides Karvy following companies can also work as intermediary between NSDL and customers.

Alankit Assignments Ltd. Integrated Enterprise Ltd. Shell Tran source Ltd.

The banking system, being the agency that collects the money on behalf of the ITD against tax obligations from the tax payers will be linked to the TIN central system to provide accounting information on tax paid by various entities under various heads. As banks are relatively technology-enabled entities, they will directly be linked electronically to the TIN central system enabling online tax accounting. On the other hand, the entities depositing the tax (deductors) vary substantially with respect to their computer skills and hence TIN design provides for TIN Facilitation Centers managed by NSDL to help digitization and upload of tax payment related information to the TIN central system. Besides

NSDL, UTI Investor Services Ltd. may also provides IT Enabled services.

8. Registrars & Transfer agents:

In 1985, Karvy entered the Registrar and Share Transfer Business tocreate 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 independent market research agency - MARG, Karvyhas 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 No. 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.

9. Loan:

Karvy has recently started this service at selected branches of metrocities. This service has not been started in Saurashtra-Kucch region.Karvy provides loans for following.

Vehicle Loan Home Loan Personal Loan

10. Equity Trading Platform

___________________Your Ultimate Investment Destination___________________

INTRODUCTION

Karvy I-Zone Plus is a brand new comprehensive online investment platform launched by KARVY for the discerning clients. This product provides the requisite advise & resources to clients for making judicious investments decisions amongst various asset classes & products, based on specific risk and return profile of the client as well as on the time horizon for the investments. The

investment advise is provided based on in-depth research conducted by KARVY. I-Zone Plus offers the advantage of confident investment transactions in equities, commodities and currency derivatives, mutual funds, IPOs of equity shares through a state-of-the-art online investment platform with fully secure online payment gateways with multiple banks.

ADVANTAGE

Advisory service with a comprehensive online investment

platform

Free financial advise on portfolio allocation in various asset classes

Free online stock-broking and attractive margin funding options*

Daily equity market research reports and calls through SMS

Life time free demat account

Free Mutual Fund transactions to an unlimited extent, including unlimited SIP transactions

Access to research reports on Mutual Funds, IPOs and Insurance

Free online commodities broking account **

Application in IPOs with attractive loan options for applications*

Regular portfolio statement for better planned future investments

Loans against securities *

Free subscription of ‘KARVY FinaPolis’ magazine

Your ultimate investment destination

Provides comprehensive advisory service for smart investments

Offers comprehensive product range

Enables transaction in NSE, BSE, MCX and NCDEX

Enables both cash and derivative trading in equities

Enables trading in currency and commodity derivative

Unlimited transactions in Mutual Funds

Enables online application for IPOs

Easy transfer of money through secured online payment gateways with multiple banks – ICICI, HDFC, IDBI, Axis, Bank of Rajasthan

Safe and secure transaction engine

Call center support @ 18004258283 for execution of transactions

Your Account Maintenance Charges

The Value You Get

If these are not part of I-Zone Then their valuewill be

Your MF transactions in a year(assumed to be valued at Rs. 1,00,000)

Rs. 1500 /-*

Normal Annual Maintenance charges for aEquity Broking + D-mat Account Rs. 500 /-Normal Annual Charge for a CommoditiesBroking Account Rs. 200 /-Market Price for an elementary health check up

Rs 1500 /-Subscription to ‘KARVY FinaPolis’ magazine

Rs. 300 /-Total Value Payable Upfront

Rs. 4000 /-

The Value You Pay For

You initially pay a Margin deposit of Rs. 5,000/-

Rs. 200/- gets deducted from this Margin deposit every month, towardsAccount Maintenance Charges (AMC) or Rs. 2000 /- per year.The remaining Margin deposit amount can be used for your trades

Alternately, you initially pay a lump sum amount of Rs. 7,000/- (comprising of Margin deposit of Rs. 5,000/- and an upfront AMC of Rs. 2,000). With this option, you get a 16.67% discount on AMC of Rs. 2,400, that would otherwise be payable in installments. Also, you get touse the entire Margin deposit of Rs. 5,000/- for your trades. Rs.350 is deductible additionally towards stamp charges. 2nd year onwards, you have the option of paying the AMC as Rs. 200/- p.m. or an upfront lump sum amount of Rs. 2,000/-

You save a minimum of Rs.1,250/- on what you would have had to pay, if you had not registered for I-Zone +

I-Zone + provides you a LIFE TIME FREE demat account (AMC for d-mat a/c is life-time free–Transaction charges will be as applicable)

11. MUTUAL FUNDS

CONCEPT:

A Mutual Fund is a form of collective investment that pool of money from many investors, who share common financial goals and invests their money in stocks, bond, short term money market instruments and/or other securities. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The flow chart below describes broadly the working of a mutual fund:

MUTUAL FUND CYCLE

TYPES OF MUTUAL FUNDS:

Open Ended Mutual FundIt is a type of mutual fund where there are no restrictions on the amount of shares the fund will issue. If demand is high enough, the fund will continue to issue shares no matter how many

Types of MutualFunds

By Structure

Open EndedSchemes

Close EndedSchemes

IntervalSchemes

ByInvestmentObjective

Growth Schemes

Income Schemes

BalanceScemes

MoneyMarket

Schemes

By Other

Schemes

Tax Saving Schemes

ELLSSpecial

Schemes

Index Schemes

Sector Specific

Schemes

investors there are. Open-end funds also buy back shares when investors wish to sell. Most of the mutual funds available in the marketplace are open-end funds. Open-end funds are generally managed actively and are priced according to their net asset value (NAV). Open-end funds are wide-ranging. Some Open-end funds are more conservative and provide consistent returns with low risk, and some are more aggressive in seeking to make capital gains through constant trading.

Close ended Mutual Funds:When an investment company issues a fixed number of shares in an actively managed portfolio of securities, it is referred to as close ended mutual funds. The shares are traded in the market just like common stock. The main difference with closed-end funds is that market price of the shares is determined by supply and demand and not by net-asset value (NAV).Its stipulated maturity period ranges from 3 to 15 years.

Interval Schemes:It is a fund that combines the features of open-ended and closed-endedschemes, making the fund open for sale or redemption during pre-determined intervals. In other words, this is a mutual fund with redemption features in between those of closed-end and open-end funds.

Growth Schemes:It is a diversified portfolio of stocks that has capital appreciation as its primary goal, and it thereby invests in companies that reinvest their earnings into expansion, acquisitions, and/or research and development. Most growth funds offer higher potential growth but usually at a higher risk.

Income Schemes:

This scheme seeks to provide stable current income by investing in securities that pay interest. Income funds typically invest in utility stocks and blue chips.

Balanced Scheme:It is a type of mutual fund that invests its assets into the money market, bonds, preferred stock, and common stock with the intention to provide both growth and income. A balanced fund is geared towards investors looking for a mixture of safety, income, and capital appreciation. The amount the mutual fund invests into each asset class usually must remain within a set minimum and maximum. It is also known as “Asset Allocation Fund”.

Money Market Schemes:Money Market Schemes aim to provide easy liquidity, preservation of capital and moderate income. These schemes generally invest in safer, short-term instruments, such as treasury bills, certificates of deposit, commercial paper and inter-bank call money.

Tax Saving Schemes:Tax-saving schemes offer tax rebates to the investors under tax lawsprescribed from time to time. Under Sec.88 of the Income Tax Act, contributions made to any Equity Linked Savings Scheme (ELSS) are eligible for rebate @20% to a maximum of Rs10, 000 per financial year.

Index Schemes:It is a portfolio of investments that is weighted the same as a stock-exchange index in order to mirror its performance. This process is also referred to as "indexing". Investing in an index fund is a form of passive investing. The primary advantage to such a strategy is the lower management expense ratio on an index fund. Also, a majority of mutual funds fail to beat broad indexes.

Sector Specific Schemes:

It is an investment fund that makes investments solely in businesses that operates in a particular industry or sector of the economy. Since the holdings of this type of fund are in the same industry, there is an inherent lack of diversification by sector associated with these funds. These funds tend to increase substantially in price when there is an increased demand for the product or service offering provided by the businesses in which the funds invest. On the other hand, if there is a downturn in the specific sector in which a sector fund invests, the fund will face heavy losses due to the lack of diversification in its holdings.(Amfiindia.com)

SELECTION CRITERIA FOR MUTUAL FUNDS:I gave suggestions for Mutual Funds based on the following parameters:

1) Investment Objective of the client:Whether the client is looking for long term investment or short, they require high returns or tax savings etc, had to be analyzed. The investment objective of the client should match with that of the particular Mutual Fund Scheme.

2) Past performance:The previous returns of the funds mentioned in the investment brochures were seen and the funds which have performed well and given high returns were preferred and suggested to clients.

3) Consistency in returns:The returns are not just expected to be high but a consistency should beobserved in the fund’s performance and returns. The previous year return for a particular fund may be high but if it is not consistent in its performance then that is a risky deal. Consistent funds are more suitable for risk averse clients.

4) Tax benefits:The investors whose objective is tax saving then advice to them invests in tax saving Mutual Funds.

5) Fund Manager:An investor will trust and invest his money in the funds which are managed by well reputed fund managers. Thus this criterion is also of utmost importance. I made suggestions to the clients after taking into consideration the above mentioned criterions and based on the mutual consent of the client as well, the investment decision was then taken. The procedure for filling forms etc followed. If the investor had already invested in equities but wanted to open a Trading and D-MAT account, I had to explain them the charges and procedures for the same.

List of Mutual Funds Clients of KARVY

1 Alliance Mutual Fund2 Birla Mutual Fund3 Bank Of Baroda Mutual Fund4 Can Bank Mutual Fund5 Chola Mutual Fund6 Deutsche Mutual Fund7 DSP Merrill Lynch Mutual Fund8 Franklin Templeton Investment9 GIC Mutual Fund10 HDFC Mutual Fund11 HSCB Mutual Fund12 IL & FS Mutual Fund13 JM Mutual Fund14 Kotak Mutual Fund15 LIC Mutual Fund16 Panjab National Bank Mutual Fund17 Prudential ICICI Mutual Fund18 Principal Mutual Fund19 Reliance Mutual Fund20 State Bank of India Mutual Fund21 Standard Chartered Mutual Fund22 Sundaram Mutual Fund23 Sun F&C Mutual Fund24 Tata Mutual Fund

12. INSURANCE

Karvy is also dealer of many private life insurance companies. At Motinagar branch, company is associated with dealing of following companies.

ICICI Prudential Life Insurance HDFC Life Insurance TATA AIG Life Insurance Max New York Life Insurance

Concept

Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. Insurance is defined as the equitable transfer of the risk of a potential loss, from one entity to another, in exchange for a premium that is risk sharing. Insurer, in economics, is the company that sells the insurance. Insurance rate is a factor used to determine the amount, called the premium, to be charged for a certain amount of insurance coverage. Risk management, the practice of appraising and controlling risk, has evolved as a discrete field of study and practice.

Sum Assured:

It is the amount of money an insurance policy guarantees to pay before any bonuses are added.Factors included in the calculation of sum assured are:

Date of birth Gender Duration Health conditions Job profile

Types Of Insurance

Types of Insurance

Life Insurance

-Whole life-Money back-Endowment

Assurance-Pension Plan-Unit Linked

Product(ULIP

Non Life/General

Insurance

-Property-Personal-Life style-Packege

MAJOR PLAYERS IN THE REGION

1. Karvy2. Indiainfoline3. ICICI direct4. HDFC security5. Indiabulls

KARVY is a premier integrated financial services provider, and ranked among the top five in the country in all its business segments, services over 16 million individual investors in various capacities, and provides investor services to over 300 corporate, comprising the who is who of Corporate India. Karvy has a professional management team and ranks among the best in technology, operations and research of various industrial segments.

History of Karvy :- The birth of Karvy was on a modest scale in 1981. It began with the vision and enterprise of a small group of practicing Chartered Accountants who founded the flagship company, Karvy Consultants Limited. They started with consulting and financial accounting automation and carved inroads into the field of registry and share accounting by 1985. Since then, karvy utilized its experience and superlative expertise to go from strength to strength, to better their services, to innovate, diversify and in the process, evolved as one of India’s premier integrated financial service enterprise.

PRODUCT AND SERVICES OF KARVY GROUP

Karvy comtrade. Karvy consultant ltd. Karvy merchant banking. Karvy global services ltd.

ICICI Direct

ICICI Web Trade Limited (IWTL) maintains www.icicidirect.com (herein after referred to as the("Website") whereas IWTL is an affiliate of ICICI Bank Limited and the Website is owned by ICICI Bank Limited. IWTL has launched and established an online trading service on the Website.

PRODUCTS AND SERVICES OF ICICI DIRECT

Investing in Mutual funds

Personal Finance

Customer Service Features

IPO’s

Margin Trading

Margin PLUS Trading

Call Trade

Trading on NSE/BSE

Trade in derivatives

Indiainfoline Security Privet ltd

India Infoline.com Securities Pvt. Ltd. is a wholly owned subsidiary of India Infoline.com Ltd and is the stock broking arm of India Infoline.com. The subsidiary was formed to comply with regulatory guidelines. www.5paisa.com is a focused website for online stock market trading. 5paisa.com is a trade name owned by the India Infoline.com group. IILSPL has applied for trading membership of the BSE under Securities and Exchange Board of India (Stock Brokers and Sub-Brokers) Rules 1992.IILSPL is in the business of providing broking services online via the Internet ("E-broking Services") and has been permitted by the NSE by way of registration permission no: NSEIL/CMO/INET/1103/2000 dated 03/July/2000, and will be applying for permission to the BSE, to provide E-broking Services to its clients. IILSPL is a TRADING MEMBER of the National Stock Exchange ofIndia.

PRODUCT OFFERED BY IILSPL

Stock market:-IILSPL deals in stock market by trading in equity and Derivatives.

Personal finance: - It Deals In Mutual Fund And Insurance.

Online Trading: - It provides services in stock and commodity trading (through Internet).

HDFC Security

HDFC security is the subsidiary of HDFC (Housing Development Financial Corporation). www.hdfcsec.com would have an exclusive discretion to decide the customers who would be entitled to its online investing services. www.hdfcsec.com also reserves the right to decide on the criteria based on which customers would be chosen to participate in these services .The present web site (www.hdfcsec.com) contains features of services that they offer/propose to offer in due course. The launch of new services is subject to the clearance of the regulators. i.e. SEBI, NSE and BSE.

PRODUCT OFFERED BY HDFC SECURITY

Online trading for Resident & Non Resident Indians.

Cash-n-Carry on both NSE and BSE.

Day trading on both NSE and BSE.

Trade on Futures & Options on the NSE.

Online IPO's.

Telephone-based Broking (Equity & Derivatives).

Indiabulls Securities Limited

Indiabulls Securities Limited was incorporated as GPF Securities Private Limited on June 9, 1995.The name of the company was changed to Orbis Securities Private Limited on December 15, 1995 to change the profile of the company and subsequently due to the conversion of the company into a public limited company; the name was further changed to Orbis Securities Limited on January 5, 2004. The name of the company was again changed to Indiabulls Securities Limited on February 16, 2004 so as to capitalize on the brand image of the term “Indiabulls” in the company name. ISL is a corporate member of capital market & derivative segment of The National Stock Exchange of India Ltd. At present, ISL accounts for approximately 3% of the total daily turnover of the Exchange with 32,359 client relationships and 70 branches spread across the country as of April 30, 2004.

Indiabulls Credit Services Limited

Indiabulls Credit Services has been valued at Rs. 263 crore with the Rs. 87.6-crore infusion. Indiabulls Credit Services Ltd, the recently formed subsidiary of broking firm, Indiabulls Financial Services Ltd. Faralon Capital, a San Franciscobased private equity fund, and its affiliates have acquired 33.3 per cent stake for Rs 87.6 crore.

Indiabulls Real StateIndiabulls through its group companies has entered Indian Real Estate business in 2005. It is currently evaluating several large-scale projects worth several hundred million dollars. Indiabulls became the first company to bring FDI in Indian Real Estate through a JV with Farallon Capital Management, a respected US based investment firm.

Products Offered By Indiabulls

Equity & Debt Stock Broking

Insurance

Commodity trading

Depository Services

Derivatives Broking Services

Equity Research Services

Mutual Fund Distribution

IPO Distributions

SHARE KHAN PVT. LTD.

Sharekhan is one of the leading retail brokerage of Citi Venture which is running successfully since 1922 in the country. Earlier it was the retail broking arm of the Mumbai-based SSKI Group, which has over eight decades of experience in the stock broking business. Sharekhan offers its customers a wide range of equity related services including trade execution on BSE, NSE, Derivatives, depository services, online trading, investment advice etc.

Product & Services offer by Share Khan

Equity Trading Platform (Online/Offline).

Commodities Trading Platform (Online/Offline).

Portfolio Management Service.

Mutual Fund Advisory and Distribution.

Insurance Distribution.

Research Methodology

Objective of Research

Each research have it’s own specific purpose. It is like to discover to question through the application of the scientific procedure. The main purpose of research to find the truth fact that is hidden and which has not been discover as yet. Our research study has two objectives.

Primary ObjectiveHow KARVY is best service provider as stock broker in the city.

Secondary Objective To know about awareness towards stock broker and Karvy

Ltd.

To study about competitive position of Karvy in competitive market.

To study about efficiency and effectiveness of Karvy

services in relation to competitor.

To study about wether pepole are satisfied with Karvy services and management or not.

To study what is the difficulty that face by investors to invest through Karvy.

To study about need of improvement in existing trading system

Type of Research

On the basis of theoretical study Research has many type. All these are distributed on the nature of research. Some of these are like-

Descriptive and Analytical Research Qualitative and Quantitative Research Conceptual and empirical Research Applied and Fundamental Research One time Research

Our research on the based on Descriptive, Qualitative and Quantative.

Descriptive ResearchDescriptive research include Survey and Fact finding enquires of different kinds. The major purpose of descriptive research is description of the state of affair as it exist at present. Researcher has no control over the variable in this research.

Qualitative ResearchIn our research we need comparison between different stock broker. So this based on the all qualitative research. In short, qualitative research is specially important in the behavioral science where the aim is to discover the underline motive of human behavior. Through this research we analyses various factors which motive to people to behave in particular manner or which make people like or dislike in particular

thing.

Quantitative researchQuantitative research based on the measurement of quantity and amount. It can be applicable to phenomena that can be express in quantity. So we use it in our research for collecting of numerical data.

Sample Design “Sample design is a definite plan for obtaining a sample from a given population. It refer to the technique or procedure the researcher would adopt in selecting item for sample.”

Generally sample design are two types- Probability Sample Design Non Probability Sample Design

We used the probability research design.

Sampling UnitSampling unit may be geographical such as state, district, village etc. The researcher will have to decide one or more of such as units that has to select for his study.

Size of Sample“This refer to the number of item that to be selected from the universe to constitute a sample.”In our research sample size is 100But we also study of Five Stock Brokers Companies related to the security and commodity market like India-Infoline, ICICI Direct, HDFC Security, Indiabulls, ShereKhan for the appropriate collection of the information

Source of data Collection

While deciding about method of data collecting to be used for the study the research should keep type of data.

1. Primary Data2. Secondary DataWe used in our research Primary as well as Secondary data. Primary data means collected fresh, and first time data and secondary data means that is already available like magazine, news paper, internet, annual report, library etc.

Survey MethodSurvey refers to the method of securing information concerning phenomena under study from all or selected number of respondent of the concern area. In a survey the investors examines those phenomena which exist in universe independent on his action. We used the scheduling method.

SchedulingIn this method enumerators along with schedule, go to the respondent,And ask them questions as per questionnaire in order the questions are listed and record the responses to make analyses.

COMPARATIVE ANALYSIS

After the whole study, we find out the following results.

Results on the basis of charges

There are the two types of the transaction: -1. Intra- Day Based2. Delivery Based

Karvy ICICI Direct HDFC Security Share Khan Indiabulls India infoline0

0.1

0.2

0.3

0.4

0.5

0.6

0.030.06

0.04 0.05 0.05 0.05

0.3

0.6

0.55

0.5

0.2

0.5

Intra dayDelivery

All the figures are in paisa/100repees.

Inference: According to the survey ICICI Direct maximum charge 0.06paisa and 0.60 paisa brokerage as compare to another in Intra-day and delivery time and is second one which HDFC charge maximum while Karvy minimum charge 0.03/ 0.30pasia in both Intra-day/delivery on the maximum investment.

Result On The Basis Of Account Opening Charge

HDFC Security Ltd:Account opening charge followed from April 2005 Rs.749. If the customer has existing relation with HDFC.

Share Khan Ltd:

There is no account opening charge but require margin money Rs.5000 for trading purpose.

ICICI Direct:An one time charge of Rs. 750 at the time of account opening will be charged. You may later upgrade your invest account to an ICICI direct.com share trading account when you desire to trade in equity.

India infoline:There is a nominal charge of Rs. 500 only toward stamp duty, legal and processing fee for account opening. This include the registration and account opening charge. Bank and Depository Participant (DP) account opening charges, if applicable, are payable separately.

Karvy Stocky Broking Ltd:Account opening charge of Rs.350 at one time and Rs.225 charge for annual maintenance charge(AMC)

Indiabulls: Account opening charge Rs.900. There in no any annual maintenance charge(AMC) and no any margin money are require.

InferenceIndiabulls maximum charge Rs.900 for account opening whereas Karvy minimum charge for Rs.350 for account opening with Rs.225 AMC but there is no AMC in Indiabulls. In Share Khan Ltd. No account opening charge but it require Rs.5000 margin money.

Result On The Basis Of Facilities

Facilities ICICI Direct

HDFC Securities

Karvy Share Khan

Indiabulls

India Infoline

Share Trading

Yes Yes Yes Yes Yes Yes

Commodity Trading

Yes Yes Yes Yes Yes Yes

D-Mat OpeningRights

Yes No Yes Yes Yes Yes

Inference: In this case we find all stock Brokers Provide all types of facility at the different charge.

Findings And Analysis

1. Do you know about the investment options?

Knowledge %ageYes 80%No 20%

Total 100

InferenceOnly 80% people know the exact meaning of investment and remaining 20% people take his /her residential property as investment. According to law purpose this is not an investment because of it is not create any profit for the owner.

2. Most preferable investment scenario ?

Investment Scenario %Bank 24%Derivative & Securities Market

28%

Insurance 4%

80%

20%

YesNo

Real state 20%Bonds 20%Others 4%Total 100

24%

28%

4%

20%

20%4%

BankDerivative & Securities MarketInsuranceReal stateBondsOthers

Inference: Today scenario is changed so the most area are covered by derivative and securities market. It is 28% of the total population.

3. What is the basic purpose of your investment?

Investment purpose Percentage (%)

Liquidity 30%Return 25%Capital Appreciation 10%Tax Benefit 20%

Risk Covering 5%Others 10%Total 100

30%

25%10%

20%

5%10%

LiquidityReturnCapital AppreciationTax BenefitRisk CoveringOthers

Inference: 75% peoples invest their money to Liquidity, Return and Tax benefit. And remaining 25% people are interested in capital appreciation, risk covering and other purpose.

4. Most important things you take into your mind while make investment?

Factor Percentage (%)Risk 8%Return 17%Both 75%total 100

8% 17%

75%

Risk ReturnBoth

Inference: in this case most of people like 75% are consider the both factor risk and return but only 25% people are consider risk and return.

5. Awareness related securities market?

Knowledge Percentage (%)Complete 8%Partial 75%Nil 17%Total 100

8%

75%

17%

CompletePartialNil

Inference: On that basis, 17% people don’t know about the securities market and 75% people having partial knowledge about securities, market so in this case there is require more promotion activity to investment awareness.

6. Do you have any D-mat & Trading account?

Account Percentage(%)Yes 40%No 60%Total 100

40%

60%

YesNo

Inference: only 40% people having the D-mat and Trading account. Other people don’t know either security market or why share move and down.

7. In which company do have D-mat and Trading account?

Company PercentageICICI Direct 26%HDFC Security 12%Karvy 19%Share Khan 15%Indiabulls 10%

India infoline 11%Other 7%Total 100

26%

12%19%15%

10%

11%7%

ICICI DirectHDFC SecurityKarvyShare KhanIndiabullsIndia infolineOther

Inference: only ICICI having the 24% of D-mat and trading account because of their better service and karvy another stockbroker who is in second position just because of their product and services.

8. Specify the reason of satisfaction with the current broking house?

Satisfaction Percentage (%)Operating expenses 18%Services 25%Brokerage 57%Total 100

18%

25%57%

Operating expensesServicesBrokerage

Inference: Regarding satisfaction 57% people conceder brokerage only 25% people looking for batter services.

FINDING

According to survey most of customer of “ICICI Direct” says it is best service provider.

After analysis it fond that 70% customer are satisfied with Karvy & ICICI Direct.

Main purpose of investments are liquidity and returns.

Investor having Risk as well as Return in their mind while making their investing.

Businessmen are more interested in the stock market in comparison to other.

Now commodity market is more preferred by investors.

People want to invest in security market but they haven’t proper knowledge about security market.

People are not aware of hedging in stock market.

People are more emphasis on brokerage then service provided by brokerage houses.

SUGGESTIONS

Commitment should be equalized for every person.

Provide the facility of free demonstrations for all.

There should be a limited no. of clients under the relationship manager. So that he can handle new as well as existing customer properly.

Some promotional activity are required for awareness to the customer.

People who at young age should be encouraged to invest in stock market.

Seminars should be held for providing information to prospective and present customer.

LIMITATION

The sample extent for research is only Delhi City.

Size of the research may not be substantial.

There was lack of time on the part of respondents.

The survey was carried through questionnaire and

the questions were based on perception.

There may be biasness in information by market

participant.

CONCLUSION

On the basis of stusdy it found that karvy stock broking ltd. is batter services provider then other stock brokers because of their research and personalized advice on what stock buy and sell. karvy provide facility of trade as well as relationship manager facility for encouragement and protect the interest of investors. It also provide the information through the internet and mobile alert that what IPO’s are coming in the market and it also provides it’s research on the future prospect of the IPO.

Study also includes that people are not much aware of commodity market while it’s going to be big market in India.

The company should organize the seminars and similar activities to enhance the knowledge of prospective and existing customers, so that they can feel more comfortable while investing in stock market.

APPENDIX

Questionnaire

1) Do you know about Investment options available?

a) Yes b) No

2) Do you know about the different types of investment alternatives?

a) Insurance & mutual funds b) Banks

c) Real estate d) Share markete) Commodity f) Others

3) What is the basic purpose of your investment?

a) Liquidity b) Returnsc) Capital appreciation d) Risk coveringe) Tax benefits

4) What are the most important things you take into account, while making any investment?

a) Risk b) Returns c) Both

5) Do you have any knowledge of share markets?

a) Partial b) Complete c) Nil

6) Do you have any D-mat & Trading account?

a) Yes b) No

7) In which company you have D-mat & Trading account?

a) Sharekhan Ltd b) Karvyc) Indiainfoline d) ICICI directe) Indiabulls f) HDFC securitiesg) Others

8) Are you satisfied with you present broking company?

a) Yes b) No

9) What is the reason? Please specify.

a) Services _______________________________________

b) Brokerage _____________________________________c) Operating expenses ______________________________d) Others ________________________________________

10) What is your trading exchange preference?a) NSE b) BSEc) MCX d) NCDEX

12) Do you know about Karvy Stock Broking Ltd?

a) Yes b) No

Respondent Details

Name: _____________________________ Date of birth: ___________________

Contact Number: _____________________ E-mail Address: ______________

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BIBLIOGRAPHY

http://www.karvy.com

http://www.wikipedia.com

http://www.mutualfundsnavindia.com

http://www.moneycontral.com

http://www.capitaline.com

http://www.sharekhan.com

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