A REPORT

ON

The study of customer Satisfraction on potential Customers of

Equity Market at Karvy Stock Broking

BY:
Sai Kumar Godavarti
(17BSP2370)
FOR:
KARVY STOCK BROKING LTD
 Title Page

A report submitted in partial fulfilment of the requirements of PGPM

program of IBS PUNE

UNDER THE GUIDANCE OF:

FACULTY GUIDE: MRS ANUPAMA TADMARLA (IBS PUNE)

COMPANY GUIDE: MR NAGAREDDY P. (KARVY STOCK

BROKING LTD)

Submission Date: 17th April 2018

 ABSTRACT

Summer Internship Program is an integral part of PGPM course.

As a part of curriculum we are required to undergo 3 months training
with reputed organization to learn the internal activities of the
organization and if possible contribute in the growth of the
organisation. The main purpose of this internship is to get exposure of
the corporate world and to make yourself ready for the same. I am
doing summer internship program from karvy Stock Broking Ltd. It
has been almost 2 months since my internship and i have gained and
learned lot of knowledge about the work which we have been
assigned.
Majorly my role is to study the customer satisfraction of potential
customers of equity market in karvy stock broking.we have to
interact with various customers to know about the type of
investments they make and the risks associated with them. It not
only covers the stock market and its important functions, but it also
includes various equity products,insurance policies and mutual
funds.
An equity market is a market in which shares are issued and traded,
either through exchanges or over-the-counter markets. Also known
as the stock market, it is one of the most vital areas of a market
economy because it gives companies access to capital and investors
a slice of ownership in a company with the potential to realize gains
based on its future performance.

The description of my project is to study the concept of stocks and

the purpose for which financial institutions adopt them.
To study various operations of various stock market,to find the
advantages of demat account and charges by various depository
participants. How potential customers of karvy invest in stock market
wisely and how they earn profits and how they face the risk and
returns associated with it in the present scenario.
To make customers know how investment is important for ever
individual and also to find the new customers and make them invest
in the stock market wisely.
 INTRODUCTION

Money management is a skill that every individual must learn

whether you are just an ordinary person or a business magnate.
Basically money management is the art of learning how to preserve
the money you have and wherever possible have it grow.

One of the best method is investment. It is the process where saved

income of an individual or group of individuals is put into use in a
manner ensuring generation of further income. Investments includes
Mutual funds, equity market or stock market , insurance etc.

The stock market refers to the collection of markets and exchanges

where the issuing and trading of equities, bonds and other sorts
of securities takes place, either through formal exchanges or over-
the-counter markets. It is also known as the equity market. These are
long term fund rising from public. The various ways of raising fund
may include

Initial Public Offer (IPO) In this, funds are raised from the public for
the very first time by sharing the ownership.

Follow-on Public Offer (FPO) In This already listed company issues

more shares in the public to raise more funds.
Rights Issue: It is the method of raising additional finance from
existing shareholders by offering securities to them.

To invest in stock market we have to first open Demat and trading

accounts from a financial institution or a registered stock broker.

Demat and Trading Accounts:

Demat Account : In this securities are held electronically in a way to

eliminate the need for physical paper certificates. Demat account is
necessary to open for a investor before investing in stock market.

Trading account : An account which is used to place orders for

buying and selling of shares. Trading account is a link between Bank
account and Demat account. When a trader intends to buy shares,
he/she needs to first transfer funds from his/her bank account and
then shares are transferred to his/her trading account which are
then stored in the demat account as per instruction. Similarly, when
a trader intends to sell stocks, his/her trading account takes back the
shares from his/her Demat account and sells them in the market. The
money is transferred to seller’s bank account after settlement as per
instruction.

STOCKS
Market capitalization of a stock, is calculated by multiplying the
share price by the total number of issued shares. Below given are
three different categories of stocks based on market capitalization.
Large Cap stocks:
These are stocks whose market capitalization is high, their market
capitalization usually varies from Rs. 200 billion to Rs. 3500 billion.
These are large and well-established companies with huge cash
reserves and a strong presence in the market. Blue-chip companies
such as Infosys, TCS and Wipro which have established themselves as
leading players are classified as large cap stocks.
Mid Cap stocks:
These are stocks whose market capitalization is in the range of Rs.
250 to 4,000 crore. These stocks lie between large cap stocks and
small cap stocks. Mid caps are medium-sized companies and are
riskier than large cap stocks. These are more promising stocks which
tend to grow faster in long future.
Small Cap stocks:
These are stocks whose market capitalization is in the range of up to
Rs.250 crore. They generally include the start-ups or companies in
the early stage of development. Small caps are riskier as they are
more likely to default during a downturn. However, they have lots of
room to grow and can prove to be a wise 'long term' investment.

Instruments Used for Trading in Stock Market :

Mutual funds:
An investment programme funded by shareholders that trades in
diversified holdings and is professionally managed. All the mutual
funds are registered with SEBI. They function within the provisions of
strict regulation created to protect the interests of the investor. The
biggest advantage of investing through a mutual fund is that it gives
small investors access to professionally-managed, diversified
portfolios of equities, bonds and other securities, which would be
quite difficult to create with a small amount of capital.

BONDS
A bond is a fixed income investment in which an investor loans
money to an entity (typically corporate or governmental) which
borrows the funds for a defined period of time at a variable or fixed
interest rate. Bonds are used by companies, municipalities, states
and sovereign governments to raise money and finance a variety of
projects and activities. Owners of bonds are debtholders, or
creditors, of the issuer.

SHARES/EQUITY
Equities or stocks represent ownership of a company. One can buy or
sell shares through broker. By investing in shares, investor receives
income in the form of dividends and appreciation in the value of
shares.

DERRIVATIVES
A derivative is a financial security with a value that is reliant upon or
derived from an underlying asset or group of assets. The derivative
itself is a contract between two or more parties based upon the asset
or assets. Its price is determined by fluctuations in the underlying
asset. The most common underlying assets include stocks, bonds,
commodities, currencies, interest rates and market indexes.

GOVERNMENT SECURITIES MARKET

A government security is a bond issued by a government authority
with a promise of repayment upon maturity. Government securities
such as savings bonds, treasury bills and notes also promise periodic
coupon or interest payments. These securities are considered low-
risk, since they are backed by the taxing power of the government.
OVER THE COUNTER (OTC)
Over-the-counter (OTC) is a security traded in some context other
than on a formal exchange such as the New York Stock
Exchange(NYSE), Toronto Stock Exchange or the NYSE MKT, formerly
known as the American Stock Exchange (AMEX). The phrase "over-
the-counter" can be used to refer to stocks that trade via
a dealer network as opposed to on a centralized exchange. It also
refers to debt securities and other financial instruments, such
as derivatives, which are traded through a dealer network.

COMPANY PROFILE

KARVY STOCK BROKING LTD is a financial services company

headquartered in Hyderabad, India. Karvy Group is one of the
leading financial services conglomerate. It offers a range of financial
services including stock broking, distribution of financial products,
depository participant, commodities broking, wealth management,
and more. It is ranked among the top five in the country across its
business segments. Other than India, it also has a presence in
Bahrain, Dubai, Malaysia, Philippines and the United States.

The company deals with financial and non-financial services. The

financial services are equity broking services, depositary services,
distribution of the financial products etc. non-financial services are
data management services, international business, market research
and analytics. They offer online trading on both key platforms—
National Stock Exchange and Bombay Stock Exchange. More
importantly, karvy stock broking ltd. make trading safe to the
maximum possible extent by accounting for several risk factors and
planning accordingly. Their online platform enables customers to
view their portfolio online and also access various research reports
and views on stocks. It also provides them with a facility to
communicate with our research/advisory teams online.

PRODUCTS THEY OFFER

  Equity
 Mutual Funds
 Commodity
 Derivatives
 Currency
 IPO
 FD’S
 Priority Account
 NRI Account

MARKETS
 Share Market
 Mutual Funds
 IPO
 Derivatives Market
 Currency
 Debt
 Commodity
 Tools

RESEARCH
 Reports
 News
 Blogs
 Karvy Financial Academy
 MAIN TEXT
Project Title: The study of customer Satisfraction on potential
Customers of Equity Market at Karvy Stock Broking.To meet the
exsisting customers and to know there views and services provided
by the karvy and also meeting new customers and making them
invest in stock market by opening new demat accounts and
designing the portfolios is being learned based on the knowledge
acquired for different clients with the help of company guide.
Insurance targets as well as sip’s and demat accounts are are also in
progress along with the project undertaken.
To understand the project undertaken, First I have to study briefly
about the equity i.e. stock market and its functions. How it works ,
How to trade ,what are the equity products etc. Taking about the
trading and its specifications, it is as follows :

 INTRADAY TRADING

Buying and selling of the same shares within the same trading day. If
one trade order is placed in Intraday and the second is not, the
shares are automatically squared off before the market closes for the
day. You can also leverage your position and trade for more funds
than available.
There are two types of Intraday Trade:
1. - Long Selling: shares are sold after they are bought
2. - Short Selling: shares are sold before they are bought
To further facilitate better services, we also provide trade
recommendations on our trading platforms.
 BUY TODAY SELL TOMORROW (BTST)
Selling the shares bought on the previous day, without holding in the
demat account.
 DELIVERY TRADING
Buying shares and taking delivery in the Demat account. We provide
several in-house research reports to help you take informed calls and
right positions in the market.
 LIMIT ORDER
Execution of trade when the price mentioned in the order is
achieved.
 COVER ORDER
Order placed with a corresponding Stop Loss Order.

 MARKET ORDER

Execution of trade at the current market price immediately after

order is placed.
 AFTER MARKET ORDER
Order placed during non market hours for execution immediately
after the market opens.

 TRADE TO TRADE
In Trade-to-trade (T2T) or T segment, no intra-day trading is
allowed for shares falling in T segment. For shares falling in T
segment to buy shares, you must pay the money and take delivery
and if you sell shares, you must give the delivery of shares and only
them will get money.

 ROLLING SETTLEMENT
The client who has bought the position (except the shares from ‘T’
segment), and has not square off his position, then the position will
be carry forwarded. Pay-in and pay-out will settle in (T+1) and (T+2)
respectively. T+1 is always when shares/amount is debited
depending on whether one is buying or selling shares. T+2 is always
when the shares/ amount is credited depending on whether one is
selling or buying shares.
  SETTLEMENT CYCLE

settlement period is the period of time between

the settlement date and the transaction date that is allotted to the
parties of a transaction to satisfy the transaction's obligations. The
buyer must make payment within the settlement period, while the
seller must deliver the purchased security within this period.

CUSTOMER SATISFRACTION
Customer satisfaction is the state of mind that customers have about
a company when their expectations have been met or exceeded over
the lifetime of the product or service. The achievement of customer
satisfaction leads to company loyalty and product repurchase.

Clearly defining and understanding customer satisfaction can help

any company identify opportunities for product and service
innovation and serve as the basis for performance appraisal and
reward systems. It can also serve as the basis for a customer
satisfaction survey program that can ensure that quality
improvement efforts are properly focused on issues that are most
important to the customer.

customer Satisfraction on potential Customers of

Equity Market at Karvy Stock Broking :
OBJECTIVES :

 To know the percentage customers have satisfied of equity

market in karvy stock broking
 To now how Demat account is helping in training
 To know the future expectations of the customers
 To know some loops and drawbacks

MEATHODS AND MEATHODOLOGY

In KARVY STOCK BROKING there are many customers available for

study, so Random sampling survey method was applied by me to
conduct the study.

A sample of 15 to 20 customers was taken in the study out of

many.Sample consist of small investors, large investors, and traders
of karvy stock broking.

I directly approached the respondents. customers were randomly

selected from large number of customers.

DATA COLLECTION MEATHOD

PRIMARY DATA : For the study, the primary data is collected

through questionnaires.

SECONDARY DATA : This is been collected through Karvy record,

report, magazines, and websites.
ACHIEVMENTS OF KARVY TILL DATE

 Among the top 5 stock brokers of India

 India’s No. 1 registrar and securities transfer agents
 Largest network of branches and business associates
 Among top 10 investment bankers
 Largest distributors of financial products
 Full fledged IT driven operations
 86% of positive reviews from customers of karvy

Conclusion
With this 1.5 months of training i was able to get good exposure
of corporate world and also how our management skills are
important to do better in our field. I was able to gain knowledge
from the company and also was able to meet new people which
developed me socially as well. In the remaining 1.5 months i
will make sure I give my best and try to gain more knowledge
and also help in giving some benefits to the company as well
with my efforts.