SUMMER TRAINING PROJECT REPORT

ON
A COMPREHENSIVE STUDY OF STOCK MARKET,
COMMODITY MARKET AND DERIVATIVES, TOOLS AND
AVENUES FOR A SMART INVESTOR
Prepared and Presented to

UNDER THE GUIDANCE OF

ORGANIZATION GUIDE

INSTITUTIONAL GUIDE

Mr. RAVI PRAKASH

Mr. ANJUM ZIA RIZVI

BRANCH MANAGER

ASSISTANT PROFESSOR

KARVY STOCK BROKING PVT.LTD

ICCMRT

BALLIA (U.P)

LUCKNOW (U.P)

Submitted in partial fulfillment for the award of degree of

Master of Business Administration from Uttar Pradesh
Technical University, Lucknow
BY
ARMAN KHAN
Roll no: 1412470026

INSTITUTE OF CO-OPERATIVE & CORPORATE MANAGEMENT

RESEARCH AND TRAINING

21/467, RING ROAD, INDIRA NAGAR, LUCKNOW226016ACKNOWLEDGEMENTS

I would like to thank Mr. AMIT KUMAR (HR Karvy, Lucknow) who gave
me the opportunity to express my gratitude to Mr. RAVI PRAKASH (Branch
Manager Karvy, Ballia) for assigning this important project to me.

I am very grateful to Mr. ASHISH KUMAR SRIVASTAVA sir, Mr. ABDUL

SALAM SHAIKH sir, Mr. NAVNEET KUMAR SHARMA and all the staff
member of KSBL for their valuable suggestions in the execution of project
work.

I owe my greatest to Respected Director Sir MR. RAM JATAN YADAV. I

express my thanks to the Principal of ICCMRT LUCKNOW, Dr. AJAY
PRAKASH for extending his support and valuable guidance.

I would also like to thank my college mentor Mr. ANJUM ZIA RIZVI who
has also helped me a lot in this project and gave me his proper guidance.

Finally, I would like to express my Sincere Thanks to all those who helped
me in successful completion of my summer training.

(ARMAN KHAN)

DECLARATION

I, ARMAN KHAN, student of Master of Business Administration (MBA) programme

from

the

INSTITUTE

OF

CO-OPERATIVE & CORPORATE

MANAGEMENT, RESEARCH & TRAINING, LUCKNOW hereby declares

that all information, facts and figures used in this Summer Training Report
title A COMPREHENSIVE STUDY OF STOCK MARKET have been
collected by me.
I also declare that this training report has been prepared by me and the same
has never been submitted by the undersigned either in part or in full to any
other University or Institute or Published earlier.
This information is true to the best of my knowledge and beliefs.

(ARMAN KHAN)
ROLL NO: 1412470026

PREFACE

Education becomes more meaningful when its theoretical aspects are combined
with the practical experiences. This provides an opportunity to the student to
improve their understanding of the studies.

Master of business administration is a course which combines with theory and

its applications as its contents of study in the field of management as a part
of this course. Every aspirant has to undergo AT LEAST SIX WEEKS
Summer Training

in an organization of repute and the purpose of this

training is to expose the student of management to real business situation and

to provide insight into the various functions carried out within the organization.

I am fortunate enough to get the opportunity of my Summer Training in

KARVY CONSULTANTS LTD.

(ARMAN KHAN)

TABLE OF CONTENTS
ACKNOWLEDGEMENT
DECLARATION
PREFACE
Chapter no.
CHAPTERS
(1)
INTRODUCTION OF THE TOPIC
(2)
COMPANY PROFILE
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)

INTRODUCTION ABOUT INDUSTRY

OBJECTIVE OF STUDY
CONCEPTUAL FRAMEWORK OF THE
TOPIC IN THE CONCEPTUAL COMPANY
RESEARCH METHODOLOGY
DATA ANALYSIS & INTERPRETATION
FINDINGS & CONCLUSION
SUGGESTION
LIMITATIONS OF THE STUDY
ANNEXURES

I.
II.
III.
Page no.
(1-5)
(6-35)
(36-59)
(60-62)
(63-74)
(75-81)
(82-93)
(94-96)
(97-98)
(99-100)

(CHAPTER -1)

(INTRODUCTION OF THE TOPIC)STOCK MARKET OR

STOCK EXCHANGE
Stock market is an organized market for the purchase and sale of Industrial
and Financial Security. It is convenient place where trading in Securities is
conducted in a Systematic manner i.e. as per certain rules and regulations.
With Primary Issuances of Securities or Financial Instruments or the Primary
market, Investors purchase these Securities directly from Issuers such as
Corporations issuing Shares in an IPO OR Private placement or directly from
the federal government in the case of Securities. After the Initial Issuance,
Investors can Purchase from other Investors in the Secondary market.

NATURE OF STOCK EXCHANGE

Market for Securities.
Deals in Second hand Securities.
Regulates Trade in Securities.
Association of Persons.
Working as per Rules.

EQUITY MARKET
Equity market is the market where the Shares of the Companies (who are
listed in Stock Exchanges) are purchase and sale.
Equity Instruments generally represent ownership interests entitled to Dividend
payments, when declared, but with no specific right to a return on capital.

COMMODITY MARKET
Commodity market is the market where Commodities (like Gold,Silver,Copper,
etc) are Sale and Purchase instead of Trading in Shares of the Companys.
Commodities are sale and Purchase in a lot in Commodity market.

DERIVATIVES
Derivatives are instruments whose value is derived from one or more
underlying financial asset. The underlying instrument could be a Financial
Security, a Securities Index or some combination of Securities, Indexes and
Commodities. Derivatives are Financial Instruments that have no Intrinsic Value.
They hedge the risk of owning things that are subject to unexpected price
fluctuations. For example, Foreign Currencies, Barrels of Wheat, Stocks and
Government Bonds.

The Underlying Securities for derivatives are :

1)
2)
3)
4)
5)

Commodities
Precious Metals
Short term Debt Securities
Common Shares
Stock Index value

TOOLS & AVENUES FOR A SMART INVESTOR

Tools:

Have an Investment Objective in place.

Recognize the risk profile and adhere to it.
Dont ignore asset allocation.
Track your Investment.
Select the right investment objective.

Avenues:

Equity market.
Commodity market.
Mutual fund.
Bonds.

Debentures.

OVERVIEW OF DEMAT ACCOUNT

DEMAT ACCOUNT

Demat account is very much similar to saving current account of a bank,

with the only difference being that it deals with securities in electronics form
and not money. A Demat account is just polite farewell to paperwork and a
warm welcome to greater efficiency and for that matter , security. A Demat
account a unique, capital market investor - oriented.

BENEFITS OF DEMAT ACCOUNT

No loss of share certificates.

No delay in transfer of shares.
No possibility of forgery on various document dealing to bad deliveries, legal
disputes.
No possibility of theft of share certificates.
No prevalence of fake certificates in the markets.
You can also receive your bonuses and rights into your depository account as
a direct credit, thus criminating risk of loss in transit.

CHAPTER-2
COMPANY PROFILE

COMPANY PROFILE

The four Chartered Accountants founded Karvy Consultants Limited in 1982. A

group of Hyderabad based practicing Chartered Accountants started Karvy
taxation services initially. Later, it forayed in to the register and share transfer
activities and subsequently into financial services. All along Karvys strong
work ethics and professional background leveraged with information technology
enabled it to deliver quality to the individual.
A decade of commitments, professional integrity and vision helped Karvy
achieve a leadership position in its field when it handled the largest number of
issue ever handled in the history of the Indian Stock market in a year.
Therefore, Karvy made in road 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 shareholder, beside companies, banks,

financial institutions and regulatory agencies. Over the past one and half
decade, Karvy has involved as a veritable link between industries, finance and
people. In January 1998, Karvy became the first Depository participants in
Andhra Pradesh as ISO: 9002 Company.
Karvy ranks among the top player in almost all the fields it operates. Karvy
Computershare Limited is Indias largest Registrar and Transfer and Agent with
a client base of nearly 500 blue chips corporate, managing over 2 crores

accounts. Karvy Stock Brokers Limited, member of National Stock Exchange,

ranks among the top 5 stock brokers in India. With over 6, 00,000 active
accounts, it ranks among the top 5 Depository Participant in India, registered
with NSDL and CDSL. Karvy Comrades, member of NCDEX and MCX ranks
among the top 3 commodity brokers in the country. Karvy Insurance Brokers is
registered as a Broker with IRDA and ranks among the top 5 insurance agent
in the country. Registered with AMFI as a corporate agent,

Karvy is also

among the top Mutual Fund mobilize with over Rs 5,000 crores under
management. Karvy

Realty Services, which started in 2006, has quickly

established itself as a broker who adds value, in the realty sector. Karvy
Global offers niche off shoring services to clients in the US, Karvy has 575
offices over 375 locations across India and overseas at Dubai and New York
over 9,000 highly people staff Karvy.

WHY KARVY

OUR COMPANIES

1. Karvy Stock Broking Limited

Equity Broking, Depository Participant, Distribution of Financial Products
(Mutual Funds, FD and Bonds), Wealth Management Services, Currency
Derivatives, Portfolio Management Services
2. Karvy Comtrade Ltd.
Commodities Broking
3. Karvy Capital Limited
(Formerly Karvy Capital Private Limited )
NBFC & Portfolio Manager
4. Karvy Investment Advisory Services Ltd.
(Formerly known as Karvy Insurance Broking Limited)
Investment Advisory Services
5. Karvy Holdings Limited
Core Investment Company
6. Karvy Middle East LLC
Wealth Management Products for NRI's
7. Karvy Realty (India) Ltd
Realty Services
8. Karvy Financial Services Ltd
Non Banking Financial Services
9. Karvy Insurance Repository Limited
Insurance Repository services

10. Karvy Forex & Currencies Private Limited

Currency and forex services

11. Karvy Consultants Ltd
Consultancy and Advisory Services, Publications
12. Karvy Computershare Private Ltd
Registrar and Share Transfer agent
13. Karvy Computershare W.L.L
( Formerly known as FakhroKarvy Computershare W.L.L )
Agent for Custody & Registration of Securities, Registered Administrator
14. Karvy Data Management Services Ltd
Data Management Services
15. Karvy Investor Services Ltd
Merchant Banking and Corporate Finance
16. Karvy Insights Ltd
Market Research
17. Karvy Analytics Ltd
Analytics
18. Karvy Solar Power Limited
Power Generation
19. Karvy Global Services Limited
Business Process Outsourcing
20. Karvy Global Services Inc, USA
Business Process Outsourcing
21. Karvy Inc, USA
Institutional Broking

PROMOTERS & MANAGEMENT TEAM

Mr. C. Parthasarathy

Mr. M. Yugandhar

Chairman & Managing Director

Managing Director

Mr. M. S. Ramakrishna
Director
Karvy Data

Management

Mr. V.Mahesh
Managing Director

Mr. V. Ganesh
CEO Karvy Computershare
- Karvy

Mr. Sushil Sinha

Mr. AmitSaxena
CEO & Wholetime Director
Finance

Mr. P. B. Ramapriyan

Wholetime Director - KarvyComtrade Vice President & Head Financial

Product Distribution

Mr. Rajiv R. Singh

Vice President & Business Head

Distribution

Mr. Swapnil Pawar

Managing Director

&CEO - Karvy Capital Karvy Stock Broking Limited

Limited

Mr. J. Ramaswamy
Group Head - Corporate Affairs

Mr. G. Krishna Hari

Group Head Finance

Mr. Deepak Gupta

Group Head HR

GROWTH AND DEVELOPMENT OF KARVY

Over the last 20 years Karvy has traveled the success route, towards building a
reputation as an integrated financial services provider, offering a wide spectrum of
services. And they have made the journey by taking the route of quality service. Path
breaking innovation in service, versatility in service and finally totality in service.
Their

highly

qualified

manpower,

cutting-edge

technology,

comprehensive

infrastructure and total customer- focus has secured for us the position of an emerging
financial services giant enjoying the confidence and support of an enviable clientele
across diverse fields in the financial world. With the experience of years of holistic
financial behind us and years of complete expertise in the industry to look forward to,
they have now emerged as a premier integrated financial services provider.
And today, they can look with pride at the fruits of their mastery and experience
Comprehensive financial services that are competently segregated to service and
manage a diverse range of customer requirements.

ORGANISATION

Karvy was started by a group of five Chartered Accountants in 1979. The

partners decided to offer, other than the audit services like corporate advisory
services to their clients. The first firm in the group, Karvy Consultants Limited
was incorporated on 23rd July, 1983. In a very short period, it became the
largest Registrar and Transfer Agent in India. The business was spun off to
form separate joint ventures with Computer share of Australia in 2005. Karvys
began topping the IPO procurement league tables and it has consistently
maintained its position among the top 5. Karvy was among the few members
of National Stock Exchange in 1994 and became a member of The Stock
Exchange, Mumbai in 2001.
Dematerialization of shares gathered price in mid - 90s and Karvy was in the
forefront educating investors on the advantage of dematerializing their shares.
Today Karvy is among the top 5 Depository Participant in India.
While the registry business is a 50-50 Joint Ventures with Computer share of
Australia. We have equity participation by ICICI Ventures Limited and Brings
Asia Limited, in Karvy Stock Broking Limited. Karvy has always believed in
adding value to services it offers to clients. A top notch research team based
in Mumbai and Hyderabad supports its employees to advice clients on their
investment needs. With the information overload today, Karvys teams of
analyst help investors make the right calls, be it Equities, MF, Insurance. On a
typical working day Karvy:

Has more than 25,000 investors visiting our 575 offices.

Publishers / broadcasts at least 50 buy / sell calls.
Attends to 10,000 + telephone calls.

Mails 25,000 envelopes, containing Annual Reports.

Executes 150,000 + trades on NSE / BSE
Advises 3,000 + clients on the investment in mutual funds.

KARVY GROUP

Karvy group comprises the following:-

KARVY STOCK BROKING LIMITED

As the flagship company of the Karvy Group, Karvy Consultant Limited has
always remained at the helm of the organization affairs, pioneering business
policies, work ethics and channels of progress. Karvy as a leader in the
registry business now transferred this business into a joint venture with
Computer share Limited of Australia, the worlds largest registrar. Today, we
service over 6 lacks customer accounts in this business spread across over 250
cities / towns in India and are ranked amongst the largest Depository Participant
in the country, Deal in Register and investment services. We are rated as
Indias

Most

Admired

management, quality

Registrar

for

overall

excellence

in

volume

processes and technology driven services. Our services

include Initial Public Offers (IPOs) processing, share holder servicing, effecting
corporate actions, investor information services and host of technology enabled
services to facilitate efficient and effective service delivery.

KARVY STOCK BROKING LIMITED

They offer trading on a vast platform National Stock Exchange, Bombay

Stock Exchange and Hyderabad Stock Exchange. Information is given as a
constant feedback to our customers, through daily reports delivered thrice Daily
- The Pre - session Report, where market scenario for the day is predicated,
the Mid session Report, times to arrive during lunch break, where the market
forecast for the rest of the day is given and the Post - session Report, the
final report for the day, where the market and the report itself is reviewed. To
add to this repository of information, we publish a monthly magazine
Karvy------ The Fin polis Which analyzes the latest stock market trends and
takes a close look at the various investment options, and product available in
the market while a weekly report, called Karvy Bazaar Baatein keeps you
more informed on the immediate trends in the stock market. In addition, our
specific industry reports give comprehensive information on various industries.
Beside this, we also offer special portfolio analysis packages that provide daily
technical advice on scrips for successful portfolio management and provide
customized advisory services to help you make the right financial moves that
are specifically suited to your portfolio.
The institutional broking arm of KARVY Stock Broking offers corporate
houses and institutions dealing capabilities on India leading stock exchanges
(NSE and BSE) in the cash and derivatives segments. This unit has devised a
process driven approach to address the needs of intuitional investors who have
unique and specialized investment needs.
Karvy Investor Services Limited, a SEBI registered Merchant Banker is a
100% subsidiary of Karvy Consultants

Limited and is among the top 10

merchant Bankers in India today. The parent Company i.e. Karvy Consultants

Limited was founded by a group of professionals in 1982 and today it has

evolved as integrated financial services company of repute, offering various
financial services to suit every requirement / need of our customers. By virtue
of its access to millions of Indian Shareholders, in addition to companies,
banks and financial institutions, Karvy has in the process built up a positive
reputation with regulatory authorities and other government agencies. Our
emphasis on the quality of the services , we offer, has been instrumental in
helping us to attain the leadership in the financial services sector.
We have

a track record of handling 70 public / rights issues as Merchant

Bankers. During the last two years we have handled the buyback issues of
TTK LIG Limited, Sirpur Paper Mills Limited, Bhagyanagar Metals Limited,
and A V Thomas Group - Nelliampathy Tea and produce Company Limited,
Chordia Food Products Limited, Heritage Foods (India) Limited, Titanor
Components Ltd, Punjab Communication Limited, etc. to name a few.
We have also handled / are handling the Rights / Public issues of Dhanalakshmi
Bank,

Dhandapani

Finance,

Moschip , Karur

Vysya

Industries Ltd,, Sah Petroleums limited, Paradyne

Bank,

Lux

Hosiery

Info Tech Limited, Yash

Papers Limited, SPL Industries Limited, Provogue (I) Limited, Tulip IT Services
Limited, Gati Limited as lead managers to name a few. We have also been
appointed as advisor to some of the GOI disinvestments. We have actively
marketed bond issues of corporations from the States of Maharashtra, Karnataka
& Gujarat and debt issues of all the Financial Institutions like IDBI, ICICI,
IFCI, REC, PFC, SIDBI, etc.
As an investment Banker, Karvy provides

Management of Capital Issues.

Management of Buybacks, Takeover and Delisting offers.

Private Placement of Debt and Equity.

Mergers and Amalgamation.

KARVY COMMODITIES BROKING PRIVATE LIMITED

Focused on taking commodities trading to new dimensions of reliability and

profitability. We have made commodities trading, an essentially age - old
practice, into a sophisticated and scientific investment option.
Here we enable 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. Our
technological and infrastructural strengths and especially our street smart skills
make us an ideal broker.
Our service matrix is holistic with a gamut of advantages, the first and
foremost being our legacy of human resources, technology and infrastructure
that comes from being part of the Karvy Group.
Our wide national network, spanning the length and breadth of India, further
support

these

advantages,

Regular

trading

workshops

and

seminars

are

conducted to hone trading strategies to perfection. Every move made is

calculated one, based on reliable research that is converted into valuable
information through daily, weekly and monthly newsletters, calls and intraday
alerts.
Further, personalized service is provided here by a dedicated team committed
to giving hassle free service while the brokerage rates offered are extremely
competitive. Our commitment to excel in this sector stems from the immense
importance those commodities broking has to a cross - section of investors,
farmers, exporters, importers, manufacturers and the Government of India itself.
Visit us at www.karvycomtrade.com

KARVY MUTUAL FUND SERVICES

Investment is the stepping stone to achieving ones financial dreams. Mutual

funds offer opportune way to long - term wealth creation. However, with more
and more funds flooding the market, the task of selecting the most suitable
scheme gets even more complicated. Mutual Fund Advisory Service at Karvy
guides you through this maze and ensures that your investments are backed by
our quality research. We are Karvy help you to reach your goals by offering:

Products of 33 AMCs.
Research reports (existing funds & NFOs; strategy reports etc.).
Customized mutual fund portfolios.
Portfolio revision (depending on changing market outlook and evolving trends).
Access to online consolidated portfolio statement.

KARVY SECURITIES LTD

Karvy has secured over Rs. 500 crores in the following debt issues

Andhra Pradesh Road Development Corporations Ltd.

ICICI Bonds (Private placement)
ICICI Bonds - 96
ICICI Bonds - 97 - 1
ICICI Bonds - 97- 2
ICICI Safety Bond - March 98
ICICI Bond 96
IDBI Flexi Bond 96
IDBI Flexi Bond - 1
IDBI Flexi Bond - 2
IDBI Flexi Bond - 3
Kerala State Electricity Board
Krishna Bhagya Jal Nigam Ltd
Power Finance Corporations Ltd
Andhra Pradesh Water Resources Development Corporation
Andhra Pradesh State - Electricity Board

IPO INTRODUCTION PVT LTD

An Initial Public Offer (IPO) is a means of collecting money from the public
by a company for the first time in the market to fund its projects. In return,
the company gives the share to the Investors in the company.
In the IPO, the lead managers decide the price of the issue. In a book
building offer, the syndicate members decide the indicative price range and the
investors decide the price of the issue through a tender method.
A draft prospectus provides the information on the financials of the company,
promoters, background, and tentative Issue price etc. It is filled by the Lead
Managers with the Securities & Exchange Board of India (SEBI) to provide
issue details. Overview of the draft prospects can be seen on www.sebi.gov.in
(SEBIs website click here). The final prospect is printed after obtaining the
clearance from SEBI and the Registrar of Companies (ROC).

KARVY FIXED INCOME SECURITIES & TRADING (K-FIST)

It was started in December 2002 with a roll out from 7 dedicated centers of
Karvy. The Retail Debt Market division which is centralized at the HO in
Hyderabad provides fixed income products to its clients and is primarily a
fund based activity. The deal sizes vary from Rs - 10,000 to Rs 5 crores.
Products - Central Government securities, State Development Loans, State
Guaranteed bonds, Public Sector Undertaking Bonds, Financial Institution
Bonds, and Bank bonds of SLR / Non - SLR category, both taxable and tax free.
Target clients Provident Fund Trusts, Educational & Religious Trusts,
Charitable Trusts, and Co - operative banks, Regional Rural Banks, Corporate
and High worth individuals Standard Operating Procedures Based on the
specific needs of the prospects Quotes of all categories of bonds are sent. The
selection of instrument is done and post negotiation (if any) the settlement date
is finalized. Contract notes are exchanged and written confirmations are
obtained before initializing the trade settlement. On the agreed settlement date,
the funds and securities are exchanged between the parties. Primarily all the
trades are in the electronic mode only. The Wholesale Debt Market division is
centralized at Mumbai and is a voice based order matching activity which is
fee based. The deal size is a minimum of Rs. 5 cr. And the reporting is done
on the NSE.
Products Central Government Securities, State Development Loans, State
Guaranteed Bonds, Public Sector Undertaking Bonds, Financial Institution

Bonds, and Bank bonds of SLR / Non - SLR category, both taxable and tax free.
Target clients Co operative banks, Commercial banks, corporate financial
institutions, Insurance companies and Asset management Companies.
Standard Operating Procedures The dealers generate 2 - way quotes during the
trading hours and match the institutional buyers and sellers. The deal contract
notes are generated and exchanged between the 2 parties. The fees are
collected by raising debit notes on a monthly basis.

KARVY REALITY (INDIA) LIMITED

(KRIL) is promoted by the KARVY Group, Indias largest integrated financial

services group. The group carries forward its legacy of trust and excellence in
investor and customer services delivered with a passion for services and the
highest level of quality that align with global standards. KRIL is engaged in
the business of real estate and property services.

Buying / Selling / Renting of Properties.

Identifying Valuable Investments Opportunities in the Real Estate Sector.
Facilitating Financial Support for Real Estate and Investment in Properties.
Real Estate Portfolio Advisory Services.
Transfer of Shares.
Pledging of Shares.
Electronic Custodial Services.
Maintenance of Beneficial Holdings.
Electronic Credit against Corporate Actions.

QUALITY POLICY OF THE COMPANY

To achieve and retain leadership, Karvy shall aim for complete customer
satisfaction, by combining its human and technological resources, to provide
superior quality financial service, in the process, Karvy will strive to exceed
customers expectation.

Quality objectives

As per the quality policy, Karvy well:

Build in - house processes that will insure transparent and harmonious

relationship with its clients and investor to provide high quality of services.
Establish a partner relationship with its investors service agent and vendors
that will help in keeping up its commitments to the customers.
Provide high quality of work life for all its employees and equip then with
adequate knowledge and skill so as to respond to customers needs.
Strive to keep all stakeholders (shareholders, clients, investors, employees,
suppliers and regulatory authorities) proud and satisfy.
Continue to uphold the values of honesty and integrity and strive to establish
unparalleled standard and business ethics.

STRATEGY OF THE COMPANY

Karvy believes that the foremost ingredient for success in this has been the
co-operation ability to continuously evolve both organizational structures and
product offerings, thereby remaining on the cutting financial services.
Karvy believes that three capitals viz, financial, human and technology, would
driven the financial services sector in the future and draw the boundaries for
achieving leadership.
Karvy believes that customized solutions are now the key drivers for market
share and profit margins.

SWOT ANALYSIS OF KARVY STOCK BROKING PVT LTD.

STRENGTH

WEAKNESS

Unique products.
Customer loyalty.
Brand name.

OPPORTUNITIES

New technology.
Online market.
New product.

Weak management.
Cost structure.
Work inefficiencies.

THREATS
Govt. regulations.
Change in tastes.
Substitute products.

DEVELOPMENT ACTIVITIES

Karvy has sought to broaden the scope of its activities by examining all
sectors of the economy and by introduction new concepts, new instruments and
in some cases new institution to response to perceived need. In this regards,
karvy developmental activities have encompassed such diverse areas as financial
investments, insurance, depository participants services, skill development
activities etc.
It has also been a pioneer in setting up PAN, TAN services, and also setting
up specialized institution in certain key sections.

1.
2.
3.
4.
5.

TIN facilitation centre.

Stock broking centre.
Financial centre.
Banking centre.
Registrar of the issues.
A separate department is present with the sole intent of providing financial
services to various charitable, educational and social welfare organizations.

ACHIEVEMENTS

Largest mobilize of fund as per PRIME DATABASE.

First ISO - 9002 certified Registrar in India.
A category - 1 - Merchant banker.
A category 1 Registrar to public issues.
Ranked as the most admired Registrar by MARG.
Handled the largest ever public issue - IDBI.
Handled over 500 public issues as Registrars.
Handling the reliance account , this accounts for nearly 10 million account

holders.
First depository participants in Andhra Pradesh.
Major issues managed as arrangers.

Registered office

KARVY HOUSE
46, Avenue 4, Street No.1,
Banjara Hills,
Hyderabad-500 034
Andhra Pradesh,
India.
Telephone: - +91-40 -23312454
Fax
E-Mail

: - +91-40-23311968
:- Mailmanager@karvy.com

CHAPTER -3
INTRODUCTION ABOUT INDUSTRY

SECURITIES MARKET IN INDIA

Introduction:-

Capital market is the backbone of any countrys economy. It facilitates

conversion of savings to investments. Capital market can be

classified as

primary market and secondary market. The fresh issue of securities takes place
in primary market trading among investors takes place in secondary market.
Primary market is also known as new issue market. Equity first enters capital
market through investment in primary market. In India, common investors
participating in the equity primary market is massive. The number of
companies offering equity through primary markets increased continuously in
the post independence period till the year 1995. After 1995, there is a
continuous slump is lack of investors confidence leading to capital mobilizing
and investment in right avenues creating, economic growth in the country.

Globally, there are increased evidences to suggest that investor confidence has
assumed an important role in the economic development of a country. The
economist (1998) indicated that a lot of issues need to address to make capital
market safer.

The Securities market is the market for equity, debt and derivatives. The
securities market has essentially 3 categories that is the issuer of the securities,
the investors in the securities and intermediaries. The issuers are the borrowers

or deficit savers, who issue securities to raise funds. The investors, who are
surplus savers, deploy their savings by subscribing to these securities. The
intermediaries were the agents who match the needs of the users and suppliers
of funds for a commission.
These intermediaries pack and unpack securities to help both the users and
investors to

achieve their respective goals. There are a large variety and

number of intermediaries providing various services in the Indian securities

market. This process of mobilizing of resources is carries out under the
supervision and overview of regulators. The regulators develop fair market
practices and regulate the conduct of issuers securities and intermediaries.
They are also in charge of protecting the interest of the investors. The
regulator ensures a high service standard from the intermediaries and supply of
equity securities and manipulated demand for them in the market.

LEVELS OF SECURITY MARKET

1. Primary Market
The Primary market is that part of the capital market that deals with
the issue of new securities. Companies, governments or public sector
institutions can obtain funding through the sale of a new stock or bond
issue. This is typically done through a syndicate of securities dealers.
The process of selling new issues to investors is called Underwriting.
In the case of a new stock issue, this sale is a public offering. Primary
market create long term instruments through which corporate entities
borrow from capital market.

2.

Secondary Market
The Secondary market, also known as the aftermarket. It is that financial
market where previously issued securities and financial instruments such
as stock, bonds, options and futures are bought and sold. The term
Secondary market is also used to refer to the market for any used
goods or assets, or an alternative use for an existing product or assets,
or an alternative use for an existing product or asset where the
customer base is the second market.

Over-the-counter Markets

3.

Over-the-counter (OTC) or off-exchange trading is to trade financial

instruments such as stocks, bonds, commodities or derivatives directly
between two parties. It is contrasted with exchange trading, which
occurs via facilities constructed for the purpose of trading (i.e.,
exchanges) such as futures exchanges or stock exchanges.

Main Financial Instruments

1.
2.
3.
4. Stocks (Shares)

Promissory Note
Certificate of Deposit
Bond

EQUITY CULTURE IN THE INDIAN FINANCIAL

SYSTEM

The Capital market services as a reliable guide to the performance and the
financial position of companies and ties up companies and there by promoter
efficiency. It values firms accurately and ties up manager composition to stock
value and there by provides incentives to managers to maximize firm value. It
thus helps to align the interests of the managers and there by efficient
resources allocation growth.

A near continuous valuation of companies is reflected in the share prices and

the implied possibility of mergers and takeovers are conducive to financial
discipline and more efficient allocation of capital.

Stock market promoters growth through the creation of liquidity.

profitable investments

Many

require long term capital but investors are often

reluctant to control over the savings for long period. Equity market makes
investment less risky, more profitable and more attractive by making it more
liquid. By facilitating long term and more profitable investment, liquid stock
markets improve the allocation of capital and enhance growth. Through these
effects, stock market liquidity can lead to more savings and investment also.

Since high projects tend to comparatively risky, stock market that facilitates
risk diversification through international integration can encourage a shift to
higher return projects and thereby help to promote growth.

Large active and liquid stock markets induce investors to research and monitor
firm and the resulting improved information improves resource allocation and
accelerates growth.

STOCK EXCHANGES IN INDIA

The market for long term securities like bonds. Equity stock and preferred
stock are divided in two primary and secondary markets. The primary market
deals with the new issues of securities. Outstanding securities are traded in the
Secondary market which

is commonly known as stock market or stock

exchange. In the Secondary market the investors can sell and buy securities.
Stock markets predominantly deal in the equity share. Debt instruments like
bonds and debentures are also traded in the stock market. Well regulated and
active stock market promotes capital formulation. Growth of the primary
market depends on the stock market. The health of the company reflected by
the growth of the stock market.

The origin of the stock exchange in India can be traced back to the later of
the 19th century. After the American civil war (1860-1861) due to the share
mania of public, the number of brokers dealing in share increased. The brokers
organized an informal association of brokers dealing in share increased . The
brokers association in 1975. At presently in India there are 23 stock exchanges
are there and situated in various parts of the country. All the stock exchanges
in India are controlled by SEBI (Securities and exchange board of India).

TYPES OF STOCK EXCHANGE

There are two main stock exchange in India

1. National Stock Exchange
2.
Bombay Stock Exchange

FUNCTIONS OF STOCK MARKET

Provide quotations of share/stock for facilitating trading and

Marketability.
Extend liquidity to such stock as they are easily marketable.
Promotes savings and investment in the economy by attracting funds for
investment incorporate shares securities.
Ensures safe and fair dealing.
Maintain active trading.

NATIONAL STOCK EXCHANGE

LOGO OF NSE

The National stock exchange (NSE) is Indias leading stock exchanges covering
various cities and towns across the country. NSE was set up by leading institutions
to private a modern, fully automated screen - based trading system speed and
efficiency, Safety and market integrity. It has set up facilities that serve as a
model for the securities industry in terms of systems, practices and procedures.

NSE has played a catalytic role in reforming the Indian Securities market in
terms of microstructure, market practices and trading volumes. The market
today uses state-of-art information technology to provide an efficient and
transparent trading, clearing and settlement mechanism and has witnessed
several innovations in product and services viz. demutualization and electronic
transfer of securities, securities lending and borrowing, professionalization of
trading members, find turned risk management system, emergence of clearing

corporations to assume counterparty risk, market of debt and derivative

instruments and intensive use of information technology.

The National Stock Exchange of India Ltd as genesis in the report the high
powered

study

group

on

establishment of

new

stock

exchange,

which

recommended promotion of national stock exchange, by financial institution

(FIs) to provide access to investors from all across the country on equal
footing. Based on recommendations, NSE was promoted by leading financial
institutions on the behalf of the GOVT of India and was incorporated in
NOVEMBER 1992 as a tax paying company unlike other stock exchange in
the country.

On its recognition as a stock exchange under the securities contracts

(Regulation) Act, 1956 in April 1993 NSE commenced operations in the
Wholesale Debt Market (WDM) segmenting JUNE 1994. The capital market
(Equities) segment commenced operation in November 1994 and operations in
derivatives segment commenced in June 2000.

NATIONAL STOCK EXCHANGE OF INDIA LIMITED

The logo of the NSE symbolizes nationwide securities trading facilities equal
and fair access to investors, trading number and issues all over the country.
The initials of the Exchange Viz. N, S and E have been attached on the logo
and a distinctly visible. The logo symbolizes connectivity to bring about the
change within the securities industry. The logo symbolizes vibrancy and
unleashing of creative energy to constantly bring about change through
innovations.

PROMOTERS OF NSE

NSE has been promoted by leading financial institutions, Banks, Insurance,

Companies and other financial intermediaries.

Industrial Development Bank of India Limited.

Industrial Finance Corporation of India Limited.
Life Insurance Corporation of India.
State Bank of India.
ICICI Bank Limited.
IL and FS Trust Company Limited.
SBI Capital Market Limited.
Bank of Baroda.
Canara Bank.
General Insurance Corporation of India.
National Insurance Corporation Limited.
The Oriental Insurance Corporation Limited.
United India Insurance Company Limited.
Punjab National Bank.
Oriental Bank of Commerce.

Indian Bank.
Union Bank of India.
Infrastructure Development Company Limited.
National Stock Exchange (NSE) of India became operational in the capital
market segment on 3rd November 1994 in Mumbai. The genesis of NSE lies in
the recommendations of the Pertain Committee (1991). Apart from NSE, it had
recommended for the establishment of

National Stock Market the defects

specified.

Lack of liquidity in most of the markets in terms of depth and breadth

Lack of ability to develop markets for debt.
Lack of Infrastructure facilities and outdated trading system.
Lack of transparency in the operations that effect investors confidence.
Outdated settlement system that are inadequate to cater to the growing volumes,
leading to delay.

MAIN OBJECTIVES OF NSE

To establish a nationwide trading facility for equities, Debt instruments and
hybrids.
To ensure equal access to investors all over the country through appropriate
communication network.
To provide a fair, efficient and transparent securities market to investors using
an electronic communication network.
To enable shorter settlement cycle and book entry settlement system.

 To meet current international standards of securities market.

MARKETS
NSE offers trading in the following segments:

Equities

Equities.
Indices.
Mutual Funds.
Exchange Traded Funds.
Initial Public Offerings.
Security Lending and Borrowing Scheme.

Derivatives

Equity Derivatives (including Global Indices like CNX 500, Dow Jones and
FTSE ).

Currency Derivative.

Interest Rate Futures.

Debt

Corporate Bonds.

TRADING SCHEDULE
Trading on the equities segment takes place on all days of the week (except
Saturdays and Sundays and holidays declared by the Exchange in advance). The
market timings of the equities segment are:

(1) Pre-open session

Order entry & modification Open: 09:00 hrs

Order entry & modification Close: 09:08 hrs*

*

with random :closure in last one minute. Pre-open order matching starts

immediately after close of pre-open order entry.

(2) Regular trading session

Normal/Retail Debt/Limited Physical Market Open: 09:15 hrs

Normal/Retail Debt/Limited Physical Market Close: 15:30 hrs

ADVANTAGES OF NSE

Wider Accessibility
The NSE ensures wider accessibility through satellite linked facility computer
terminals and links with VAST helps the traders to contact their counterparts in
the other parts of the country quickly. The quick trading system ensures better
pricing.

Screen Based Trading

Originally, the basic advantage of NSE is computer - based trading. The back
office loads have been reduced as everything is stored in the computer. At
present BSE and many other stock exchanges have introduced the computer
based trading. The ring based trading is vanishing in the recent days.

Non Disclosure of the Trading Members Identity

While placing the orders there is no need to disclose the identity of the
member on the screen. It depends upon the wish of the trading members.
So, without any fear of influencing the price, any member can place size
orders.

More Liquidity
With its online system and quick trading facilities the NSE has introduced
some liquidity into the capital market. In the last quarter of 1997, the NSE
was more liquid for the 835 scraps that accounted for 97% of total trading
volume. In number of trades, an indicator of the presence of the retail
Investor, the NSE was ahead of the BSE.

 Less Brokerage
Transparency in NSE allows the breaking up of the costs into brokerage fees,
market impact costs and clearing and settlement. The brokerage fee at the BSE
terminals outside Mumbai is 0/5% of the value transacted. On the NSE, its
around 0.1% of the value transacted.

RECENT TRENDS IN NSE

Expansion
After establishing operations in Mumbai. The NSE had expanded its operation
to the other cities. NSE has installed 2580 VASTs in 317 cities across the
country. A break up of VASTs across 317 cities is given below.

Quality:A part from the consolidation of the market at the national level, the
transaction cost along with the bad deliveries has declined. To affective fun
cottoning on National Securities Clearing Corporation Limited is another reason
for it.

EXCHANGE TRADED FUNDS AND DERIVATIVES ON NSE

The following products are trading on CNX Nifty Index in the Indian and
international Market:

7 Asset Management Companies have launched exchange-traded funds on

CNX Nifty Index which are listed on NSE

15 index funds have been launched on CNX Nifty Index

Unit linked products have been launched on CNX Nifty Index by several
insurance companies in India

World Indices
Derivatives Trading on CNX Nifty Index:

Futures and Options trading on CNX Nifty Index

Trading in CNX Nifty Index Futures on Singapore Stock Exchange (SGX)

Trading in CNX Nifty.

BOMBAY STOCK EXCHANGE (BSE)

Logo of the Bombay stock exchange

The Bombay Stock Exchange is the oldest exchange in Asia. It traces its history to
1855, when four Gujarati and one Parsi stockbroker would gather under banyan trees
in front of Mumbai's Town Hall. The location of these meetings changed many times
as the number of brokers constantly increased. The group eventually moved to Dalal
Street in 1874 and in 1875 became an official organization known as "The Native
Share & Stock Brokers Association".
On 31 August 1957, the BSE became the first stock exchange to be recognized by
the Indian Government under the Securities Contracts Regulation Act. In 1980, the
exchange moved to the Phiroze Jeejeebhoy Towers at Dalal Street, Fort area. In 1986,
it developed the BSE SENSEX index, giving the BSE a means to measure overall
performance of the exchange. In 2000, the BSE used this index to open its derivatives
market, trading SENSEX futures contracts. The development of SENSEX options
along with equity derivatives followed in 2001 and 2002, expanding the BSE's trading
platform.

Historically an open outcry floor trading exchange, the Bombay Stock Exchange
switched to an electronic trading system developed by CMC Ltd in 1995. It took the
exchange only fifty days to make this transition. This automated, screen-based
trading platform called BSE On-line trading (BOLT) had a capacity of 8 million
orders per day. The BSE has also introduced a centralized exchange-based internet
trading system, BSE WEBx.co.into enable investors anywhere in the world to trade
on the BSE platform.
The BSE is also a Partner Exchange of the United Nations Sustainable Stock
Exchange initiative, joining in September 2012.

Hours of operations

Session

Timing

Pre-open Trading Session

Trading Session
Position Transfer Session
Closing Session
Option Exercise Session

09:00 - 09:15
09:30 - 15:30
17:05 - 17:15
17:05 - 17:55
17:07

FUNCTIONS OF STOCK MARKET

Stock market plays a very important role in developing the economy of a country.
Some of the major functions are discussed here below:

1. Measure of Safety and Fair Dealing:

The stock exchanges operate under a

regulatory framework which are approved by

the central government, and meant to ensure that a reasonable measure of safety is
provided to investors and transactions take place in competitive conditions which are
fair to all concerned.

2. Act of Magic:
Most of the investors are interested in short-term to medium term investments. The
requirements of companies are, however, long-term in nature they require equity
capital on a more or less permanent basis and debenture capital for to 15 years.
Thanks to the negotiability and transferability of securities through the stock market it
is possible for companies to obtain their long-term requirements from investors with
short-term and medium-term horizons. While one investor is substituted by another
when a security is transacted, the company is assured of availability of funds.

3. Flow of Capital to the Most Profitable Channels:

Companies which have more profitable investment opportunities are normally able to
raise substantial funds through the stock market, whereas companies which do not
have such opportunities are normally not able to do so. As a result, the stock market
facilitates the direction of the flow of the capital to the most profitable channels.

4. Inducement to Companies to raise their Standard of

Performance:
When the equity capital of a company is listed on a stock exchange, the
performance of the company is reflected in the market price of the equity stock,
which is readily available for public consumption. Put differently, the companys
performance is more visible in the eyes of the public. Such a public exposure
normally induces companies to raise their standard of performance.

4. Guidance on Cost of Capital:

The market values of the securities of company are required for computing its cost
of capital. Such values can be obtained from stock market quotations. Hence the
stock market offers guidance on cost of capital.

CHAPTER 4
OBJECTIVE OF THE STUDY

OBJECTIVE OF THE PROJECT

1. To know the opinion of the customers regarding the Share trading in Karvy
Stock Broking Pvt.Ltd.
2. To know the customers investment patterns in Equity market, Commodity
market, and Derivatives.
3. To know what consumer look for while Demating their shares.
4. To know the satisfaction / dissatisfaction level of consumers with reference
to Karvy stock broking ltd.
5. To know the potential of the customers for the investment in Karvy Stock
Broking Pvt.Ltd in Ballia.

SIGNIFICANCE

This area demands maximum benefits at minimum cost. An investor as to

decide in this electronic trading environment where he is sake with his share
holding and where we can get best service at minimum cost. So my study is
about whether the consumer is satisfied with all these services that he is
getting from different depository participant in Ballia, U.P.

Consumer satisfaction can be defined as more that is one get more what he is
expecting. So an investor finds himself satisfy when he get services at their
home and in the because share market is the most volatile market.

CHAPTER-5
CONCEPTUAL FRAMEWORK OF THE TOPIC IN
CONCERN COMPANY

DEMATERIALISATION

Dematerialization is a process in which you can convert physical share

certificates into electronic shares. Shares should have been transferred in your
name / joint names before sending it for dematerialization.

You have the option to hold shares either in the physical or in the
dematerialized form. This is as per the Depositories Act, 1996. However, when
you buy shares you may receive delivery in the Demat form as per the option
of the seller.

REMATERIALISATION

It is the process by which a client can get his electronic holdings converted
into physical certificates. The client has to submit the Rematerialization
request to the DP with whom he has an account. The DP enters the request
in its system which blocks the clients holding to that extent automatically.
The Issuer / R & T agent then prints the certificates, dispatches the same to
the client and simultaneously electronically confirms the acceptance of the
request to NSDL, Thereafter, the clients blocked balances are debited.

PLEDGE

To deposit personal property as security for a personal loan of money, If he

loan is not repaid when due, the personal property pledged shall be forfeit to
the lender. A client (pledged) having a beneficiary account with a Depository
Participant can pledge securities in electronic form against loan / credit
facilities extended by a pledge, which too has a beneficiary account with a
Depository Participant.

HOW TO OPEN KARVY DEMAT ACCOUNT

Step 1: Account opening forms are available at all karvy centers fill up the
account opening form and submit the same the same with some formalities. If
your shares are held in joint names, the account should be opened in the same
order of names.

Step 2: An account number will be allotted to you whom have to be quoted

in all your future Demat related correspondence with Karvy.

Step 3: Submit a dematerialization request form (DRF) for the conversion of

the share certificates into electronic form.

Step 4: After the necessary verification has been done by the registrar /
company, an appropriate entry is made into your Demat account.

FORMALITIES THAT ARE REQUIRED TO BE

COMPLETED TO OPEN AN ACCOUNT

To open a Depository Account, you have to submit the duly filled in Account
Opening form along with the following documents:

Residential Proof Copy of Ration Card, Passport, Driving License,

Telephone Bill, Electricity Bill or Rental Agreement.
Photo Identity Proof - Copy of Driving License, Passport or Ration Card.

Why to open a Demat account with Karvy?

Karvy is Indias premier financial institution. It was set up in 1982 and today
it has the first depository participants. No.1 registrar and ISO 9002 company
in India and also have much achievement with over 10 lakh investors having
entrusted to keep stock there. Moreover, you have the convenience of operating
you Demat account from any of the Karvy enters spreading across 46 cities in
India.

Online Demat services in Karvy:

Karvy provide facility to online Demat services.

Karvys electronic Custodial Services are:

Convert your physical holding into electronic holding (which is called

Dematerialization of securities).
Keep custody of your holdings in electronic form.
Transfer the shares in the electronic form from one account to another.
Facilitate pledge of your electronic securities.
Give electronic credit of new share allotments such as public issues, bonus,

rights etc.
Convert your electronic holding into physical holding (which is called
Rematerialization of securities).

Buying and selling of shares by Karvys Demat account:

After you open an account with Karvy, you can buy and sell shares in
electronic form. In order to sell shares in the Demat mode you need to
provide your Depository with the number of shares sold by you.

When you share in the depository mode, you must similarly provide the
depository with the details so that shares purchased will be credited to your
account. It is advisable to give a standing instruction at the time of account
opening to automatically receive the credit to your Demat account.

Benefit by selling Demat shares:

Brokers have no fear of bad delivery while selling Demat shares. Due to this,
they offer lower brokerage to you. As bad deliveries are eliminate shares is
not returned due to objections, resulting in saving of costs and follow up.

Why should I buy shares in the Demat form?

The single biggest reason over buying shares in the physical form is that
Demat shares credited to your account within 2 or 3 days after the end of
settlement. This is unlike the average 30 to 40 days taken in receiving back
physical shares from the R & T Agent and sometimes with objections. Further
possibility of loss or theft of the certificates is eliminated. This is in addition
to the 0.50% stamp duty savings, which works out to Rs .50.

By Demat account you can get following facilities:

Transaction statement: You can view transaction in your account for a
period of 15 days. Various options are available in transaction statement when
you want.

Status of request: You can also get status of your transaction by status or
request.

Personal details: Provides your various client related information like client
name, client address, joint holders name, account type, bank account details
for a given client id.

Customer ledger: All your financial transactions pertaining to your Demat

account like Bills, Payments, and Waivers etc. are available in customer ledger.

DRF (Demat Request Form)

In order to get your shares converted from the physical to the electronic form,
you have to submit your certificates along with a request form asking for the
conversion.
This request form is called a DRF or a Demat Request Form.

DEPOSITORY SERVICE CHARGES FOR RESIDENTS RETAIL

CUSTOMERS AND CORPORATE

Sr.

Charge

Standard Charges

Frequent / Subbrokers

no. Head
1.

A/c Opening

Rs. 650

Rs. 650

2.

Annual

Rs. 300

Rs. 1250

Rs.2.25 per ISINs per quarter

Rs.2.25 per ISIN quarter

As per respective State Act

As per respective State

Service
3.

Charge
Custody Fee
(An A/c with
ISINs will be
assume to
have one

4.

ISIN)
Agreement
Stamp Paper

5.

Buy - Market
and Of fMarket (% of
transaction
value of each
ISIN)
MAXIMUM
Rs. 500/- for

Act
0.02% (Min, Rs.20)

Nil

debt
instrument
6.

Sell - Market

.0.04

and Off -

% (MIN Rs. 10) for each

0.02%

market (% of

instruction

(MIN Rs. 5) for each

transaction

instrument

value of each
ISIN) - MAX
Rs. 500 for
debt
7.

instrument
Rejection /

Rs. 20

Rs. 10

Rs. 10 per ISIN /

Rs. 10 per ISIN

Fails
8.

Extra charges
for processing
of TIFDs
Submitted late
(% of
transaction
value)

CHAPTER- 6
RESEARCH METHODOLOGY

REASERCH METHODOLOGY

The main objective of a research or to find out the truth which is hidden and
which has not been discovered. According to advance learners dictionary of
current English the definition of research is:

A careful investigation or enquiry especially through search for new facts in

any branch of knowledge.

MARKETING RESEARCH

Market managers often commission formal marketing studies of specific

problems and opportunities. They may request a market survey, a product
preference test, or an advertising evaluation.
Marketing research is the function which links the consumers, customers, and
public to the marketer through information - used to identify and defines
marketing opportunities and problems, generate and evaluate marketing actions:
- monitor marketing performance and improve understanding of marketing as a
process.
Effective marketing research includes these steps, which should be kept in mind
to conduct a marketing research in a perfect manner.

Define the problem and Research objective.

Develop the Research Plan.
Collect the Information.

Types of Research

The customer research was carried out in two phases:

a) An exploratory research was carried out to know what customers look for in
a financial company and whether customers are satisfied or not with these
products.
b)

The other was a diagnostic study to identify the factors responsible for
satisfaction or dissatisfaction of customers.

SOURCES OF DATA

The data needed for this study has been collected from two main sources:1.
2.

Primary Sources.
Secondary Sources.

PRIMARY DATA
Primary data has been collected through:
Well - structured Questionnaire, Telephonically, Personal Interview.

SECONDARY DATA
Secondary data has been collected through:

Magazines, Journals, Websites.

Secondary data has helped in collecting information regarding history of the

company, division of the company etc. of market position of other financial
companies.

TOOLS USED FOR DATA COLLECTION

Whatever we design of research study it s necessary to collect relevant 5 data

thus it is useful to consider methods of collecting data and the quality of
information produced.

a) Questionnaire: - It is the basic methods of collecting data in marketing

research. Questionnaires are the basic method of collecting data in marketing
research. Questionnaires are distinguished by the facts that asking to people
who have the desired information collects data. When Questioning researches
collects data ask questions. They keep track of the objects or actions in which
they are interested. Sometimes individual makes the observation on the other
occasion mechanical devices note and record the desired information.
In this study the data was collected by means of questioning since the methods
of observation is also used for checking the awareness regarding he financial
products.

The Questionnaires were filled by using tested personal interviews.

b) Personal Contact: - To get information, Contacts are necessary it can be by

personal contacts. I prefer interview method to get the necessary information
from the people. The data was collected through personal interview by asking
the questions.

c) Telephonically: - To get information I also used this method by calling them

through telephone in their homes, offices, institutions etc. and made them
aware from the Demat and financial product.

DATA COLLECTION

I collected the data through questionnaire, which is filled up by the people of

Ballia City; the purpose of data collection was to know the satisfaction of
customers towards the Demat services in Karvy stock brokers at Ballia. The
questionnaire is filled up by 50 people approx.

In data collection I asked some question about the satisfaction of customers

towards the Demat services.

CHAPTER-7
DAT ANALYIS AND INTERPRETATION

Table 1- Showing the occupation of respondents.

Occupation

No. Of respondents

Exporters
Business
Others
Total

10
30
10
50

Percentage
20
60
20
100

Percentage
20%

20%

Exporters
Business
others

60%

INTERPRETATION:
The above table shows that 60% of the respondents are businessman, 20% are
exporters and 20% are others.

Table 2- Showing income level of the respondent.

Income

No. Of respondents

Percentage

Up to 5 lakh
5 lakh-10 lakh
10 lakh-15 lakh
Above 15 lakh
Total

20
17
8
5
50

40
34
16
10
100

Percentage
Up to 5 lakh

10%
16%

40%

5 lakh-10 lakh
10 lakh-15 lakh

34%

Above 15 lakh

INTERPRETATION:
The above table shows that 40% of the investors income is up to 5 lakh, 34%
income lies between 5 lakh-10 lakh, 16% income lies between 10 lakh-15 lakh,
10% income is above 15 lakh

Table 3- Showing the investors investing different avenues.

Avenues

No. Of respondents

Percentage

Bank deposits

15

30

Currency derivatives

18

Shares

11

22

Debentures

Fixed Deposits

Mutual fund

16

Total

50

100

Percentage
Bank deposits
6%
8%

16%

Currency derivatives
30%

Shares
Denentures

22%

INTERPRETATION:

18%

Fixed deposits
Mutual fund

The above table depict that 30% of respondents prefer to invest in bank
deposit due to safety, 22% in shares, 18% in currency derivatives, 16% in
mutual funds, 8% in debentures and 6% in fixed deposits.

Table 4-Showing the regular investors .

Pattern

No. Of respondents

Yes
No
total

Percentage

30
20
50

60
40
100

Percentage

40%

Yes
60%

No

INTERPRETATION:
The above table that around 60% of the respondents invest regularly and 40%
invest occasionally.

Table 5- Showing the investment pattern of the investors .

Investing Pattern

No. Of respondents

Intraday
Delivery
Total

Percentage

31
19
50

62
38
100

Percentage

38%

Intraday
62%

Delivery

INTERPRETATION:
The above table shows that around 62% the respondents prefer intraday trading
and 38% for delivery.

Table 6 -Showing source of information.

Source Information

No. Of respondents

Expert/professional
Own experience
Existing investors
Total

Percentage

12
32
6
50

24
64
12
100

Percentage

12%

24%

Expert/Professional
Own experience
Existing Investors

64%

INTERPRETATION:
Source of information plays a key role in investing in a particular avenue the
above table shows that 64% of the respondents have invested by their own
experience, 24% of the respondents invested by the experts/professional and
12% of the respondents invested by the guidance given by existing investors.

Table 7- Showing the factors influencing for investment.

Factors

No. Of respondents

Convenience
Safety
Income
Total

Percentage

14
21
15
50

28
42
30
100

Percentage

28%

30%

Convenience
Safety
Income

42%

INTERPRETATION:
The above table shows that most of the investors about 42% invest for the
purpose of safety followed by 28% convenience and rest for income that is
30% investors.

Table 8-Showing the investment for equity market.

Investments

No. Of respondents

Up to 1,00,000
1,00,000-3,00,000
3,00,000-5,00,000
Above 5,00,000
Total

17
15
12
6
50

Percentage
34
30
24
12
100

Percentage
Up to 1,00,000

12%

34%

24%

1,00,000-3,00,000
3,00,000-5,00,000

30%

Above 5,00,000

INTERPRETATION:
The above table shows that investors invest in equity market up to 1,00,000 are
34%, 1,00,000-3,00,000 are 30%, 3,00,000-5,00,000 are 24%, above 5,00,000 are
12%.

Table 9-Showing the investment for commodity market.

Investments

No. Of respondents

Up to 2,00,000
2,00,000-4,00,000
4,00,000-6,00,000
Above 6,00,000
Total

19
14
10
7
50

Percentage
38
28
20
14
100

Percentage
Up to 2,00,000

14%
38%

20%
28%

2,00,000-4,00,000
4,00,000-6,00,000
Above 6,00,000

INTERPRETATION:
The above table shows that investors invest in equity market up to 2,00,000 are
38%, 2,00,000-4,00,000 are 28%, 4,00,000-6,00,000 are 20%, above 6,00,000 are
14%.

Table 10-Showing the sectors for investment in equity market.

Sectors

No. Of respondents

IT
Pharmacy
Telecom
Banking
Others
Total

11
8
9
12
10
50

Percentage
22
16
18
24
20
100

Percentage
IT

20%

22%

Pharmacy
Telecom
16%

24%
18%

Banking
Others

INTERPRETATION:
The above table shows that investors in equity in IT are 22%, in Pharmacy are
16%, in Telecom are 18%, in Banking are 24%, and in others 20%.

Table 11-Showing the different commodity investment in

commodity market.
Commodities

No. Of respondents

Gold
Silver
Copper
Crude oil
Others
Total

12
8
5
5
20
50

Percentage
24
16
10
10
40
100

Percentage
24%
40%

Gold
Silver
Copper

16%
10%

INTERPRETATION:

10%

Crude oil
Others

The above table shows that investors investment in commodities are 24% invest
in gold, 16% in silver, 10% in copper, 10% in crude oil and rest 40% invest
in others.

CHAPTER-8
FINDINGS & CONCLUSIONS

FINDINGS

1. People are interested in share market by but they are not much aware about
the share trading procedure.
2. People dont want to take the risk of share trading.
3. Trading problem is also a big problem.
4. Other group people like agricultural and not aware and interested in share
market.

CONCLUSION

Concerning my project title CONSUMER SATISFACTION REGARDING

DEMAT SERVICES IN BALLIA the survey conducted by me as I found
that the consumer satisfaction is the only way for the success of any
organization in the present time, and I came to the following conclusion which
is as follows
1. Response was very good from the customers regarding the financial products
because at this time everyone wants more return on less investment and in
case of Demat they want true time to open the Demat (like at the time of
issues).
2. Karvy is gaining good response in the Demat field by providing good services.
3. I concluded by this research that services and returns got more importance than
goodwill.
4. In the last six month it has opened the maximum number of Demat account at
the time of new public issues than any other companies.
5. I also conclude that many financial services at one place is the another reason
of its popularity.

CHAPTER- 9
SUGGESTION

SUGGESTIONS

The detail study of the project idea to the following recommendations:1. The company should come up with some good strategies to create awareness
among people regarding the financially Demat.
2. The company as soon as possible should try to convert itself into a bank so
that many people come in contact and join with company.
3. They should try to provide some extra services to their customers.
4. The company should concentrate more on after sales services.

CHAPTER- 10
LIMITATIONS OF STUDY

LIMITATIONS

Due to short time I was not able to cover all areas.

Not financially supported by the Company.
Due to lack of awareness and interest on the part of respondents created
problem in the collection.

ANNEXURE

BIBLIOGRAPHY

Books:
1. Edminster, R.O., Financial Institutions, markets & management, McGraw-Hill, New
York, 1986.
2. Kothari C. R Research Methodology, New age Publication, 2009.
3. Kotler Philip Marketing Management, millennium Edition, Prentice Hall inc.
Publication,2004 .
4. Bhole L M, Financial Institutions and Markets,Mc Graw-Hill, New Delhi, 2011 Sixth
reprint.

Websites:
www.karvy.com
www.nsdl.com
http://www.nsdl.com

Magazines:
Business world.

Questionnaire for consumer survey with reference to share

trading in Karvy stock broking pvt.ltd

Name:

Age:

Gender:

Occupation:

Q1) Do you invest in share market?

a) Yes

b) No

Q2) In which stock trading firm do you invest?

a) Karvy

b) Angel Brokers

c) Share Khan

d) Others

Q3) What is the income range (annual) you fall in?

a) Up to Rs. 5 lakh
b) Rs. 5 lakh Rs. 10 lakh
c) Rs. 10 lakh Rs. 15 lakh
d) Above 15 lakh
Q4) Do you invest in equity market?
a) Yes

b) No

Q5) How much you invest in equity market (annually)?

a)
b)
c)
d)

Up to 1,00,000
1,00,000 3,00,000
3,00,000-5,00,000
Above 5,00,000

Q6) For how long you are investing in equity market?

a) Less than 1 year
b) 1 to 2 years
c) 2 to 3 years
d) More than 3 years
Q7) Are you also interested in commodity market?
a) Yes

b) No

Q8) How much you invest in commodity market(annually)?

a)
b)
c)
d)

Up to 2,00,000
2,00,000-4,00,000
4,00,000-6,00,000
Above 6,00,000

Q9) Generally which holding period do you follow ?

a) Intraday
b) Delivery

Q10) Why do you exercise share trading?

a) For Speculation purpose
b) For Investment purpose

Q11) In which sector do you invest often in equity market?

a) IT
b) Pharmacy
c) Telecom
d) Banking
e) Others
Q12) In which commodity do you invest often in commodity
market?
a) Gold
b) Silver
c) Copper
d) Soya bean
e) Others

Suggestion: Would you like to give any suggestion, comments

and feedback with regards to share trading in India?

..