Financial analysis and strategic approach of Karvy Stock Broking

Limited and its competitors

Karvy Stock Broking Limited

SUBMITTED BY:
HIMANSHU SINGH
BCOM (HONS)
ENROLLMENT NO. – A7004617161
Semester – 5th
Batch - 2017-2020

Under guidance of:

Industry Guide: Faculty Guide:
Shiv Narayan Dr. Sarveshwar Pande
Area Head- Lucknow ABS, Lucknow
Financial Product Distribution
Karvy Stock Broking Limited

(SUMMER INTERNSHIP REPORT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF FULL
TIME DEGREE OF BACHELORS OF COMMERCE (2017-2020))

AMITY BUSINESS SCHOOL

AMITY UNIVERSITY UTTAR PRADESH LUCKNOW
 STUDENT DECLARATION

Title of project report –Financial analysis and strategic approach of Karvy Stock Broking ltd. and
its competitors

I understand what plagiarism is and am aware of the University’s policy in this regard

I declare that :

(a) The work submitted by me in partial fulfillment of the requirement for the award of degree
B.COM(H.) Assessment in this Summer internship report is my own; it has not
previously been presented for another assessment.

(b) I declare that this Summer internship report is my original work. Wherever work form
other source has been used, all debts (for words data, arguments and ideas) have been
appropriately acknowledged and referenced in accordance with the requirements of NTCC
Regulations and Guidelines.

(c) I have not used work previously produced by another student or any other person to submit
it as my own.

(d) I have not permitted, and will not permit, anybody to copy my work with the purpose of
passing it off as his or her own work.

(e) The work conforms to the guidelines for layout, content and style as set out in the
Regulations and Guidelines.

Date: Name – Himanshu Singh

Course – BCOM (HONS.)
Semester – 5th
Enrollment no. – A7004617161
Batch – 2017 - 2020
 STUDENT’S CERTIFICATE

Certified that this report is prepared based on the Summer internship report undertaken by me in

“Financial analysis and strategic approach of Karvy Stock Broking ltd. and its competitors

from 13thMAY to 6thJULY 2019, under the guidance of DR SARVESHWAR PANDE in partial

fulfillment of the requirement for award of degree of B. Com (hons) from Amity University, Uttar

Pradesh.

Date--------------------

Sign: Sign: Sign:

HIMANSHU SINGH DR SARVESHWAR PANDE Prof. Anil Kumar Sharma

(Student Name) (Faculty Guide Name Director(ABS)

with Designation)
 FACULTY CERTIFICATE

Forwarded here with a company report on “Financial analysis and strategic approach of
Karvy Stock Broking ltd. and its competitors” submitted by HIMANSHU SINGH
(A7004617161) student of B. Com (hons) 5th Semester (2017-20).
This project work is partial fulfillment of the requirement for the degree of Bachelors in commerce

from Amity University Lucknow Campus, Uttar Pradesh.

DR SARVESHWAR PANDE
Amity Business School,
Amity University Lucknow Campus,
UTTAR PRADESH

=
 ACKNOWLEDGEMENT

We take this opportunity to express our profound gratitude and deep regards to our faculty guide
DR SARWESHWAR PANDE for his exemplary guidance, monitory and constant encouragement
throughout the course of this project. The blessings and guidance given by her from time to time
shall carry us a long way in the journey of life on which we are about to embark.
We are particularly indebted to our parents for inspiring us to do this work.
We also express our great sense of gratitude to our caring friends and relatives for their
encouragement and moral support they have made, as and when required to complete this study.
 TABLE OF CONTENTS
i. Chapter 1 – Introduction

ii. Introduction of the report

i. Introduction to the industry

b. Chapter 3- About the company

iii. Chapter-4- SWOT Analysis

CHAPTER: 1
 INTRODUCTION TO THE REPORT

In today's era private sector is one the fastest emerging sector in the county. For the young and
experience professionals the private industry holds great opportunities after the liberalization.
Karvy Stock Broking is one of the key players among the private stock broking companies and is
putting lots of efforts to improve its efficiency and effectiveness.
There are number of companies which are providing the financial products like insurance,
mutual funds, demat accounts service, general insurance, portfolio management, wealth
management, gold coin, money changing, money transfer and others including Demat accounts
services. Karvy Stock broking limited offers variety of stock broking services, gold coin
exchange, foreign exchange services, mutual funds services, commodity, insurance, IPO
services, share registry, pan service, mutual fund registry under a single roof.
KARVY STOCK BROKING LIMITED offers many financial products under a single window.

It consists of 7 units namely:-

1.Stock Broking services

2.Demat

3.Mutual Fund

4.IPO

5.Commodity

6.Forex

7.Gold

This project has been a good experience for me as it gave me enough scope to implement my
analytical ability. In the industry of Stock broking which is basically my concern industry around
which my project is revolving and is a very complex industry. Entire topic has been covered in a
systematic way and the language is very simple for someone to understand.
The topic consists of financial analysis of Karvy stock broking limited about demat accounts and
share trading and brief knowledge about mutual funds and general insurance. This topic all gives
view of different strategic approach used by karvy stock broking to provide better services than
its competitors. Data has been collected through questionnaire which give knowledge about
different leading stock broking companies and their different business strategies.
I have really enjoyed during the summer internship as i got a much better knowledge about share
market trading and its working not only about karvy stock broking ltd. but about other companies
to. The practical knowledge gave enough knowledge to implement my experience in related
companies in near future
I am able to know about the working of share market and Mutual funds. It has give me a clear
knowledge about the risk meter and the investment option in different fund by understanding its
risk. I also got knowledge about the systematic investment program and about the varies
financial activities performed in Karvy Stock Broking limited.
There is increasing competition among brokerage firms for the reform to India. It is always
difficult for the investor to choose a brokerage firm. An investigation has been conducted to
determine which brokers prefer them and which people prefer to invest in the stock
market. This study suggests that, for lack of knowledge, people are reluctant to invest in the
stock market and products. The main objective of the investment is profitability and
liquidity, and the commodity market is less favored by investors because of the shortage of
knowledge. The main findings of this study are that people are interested in investing in the
stock market but do not know it. Through this report, we were also able to understand the
positive and positive points of our company Karvy, on the basis of which we know on what
basis a potential customer can be won. We have also suggested to the company what
improvements can be made to our product.
 INTRODUCTION TO THE INDUSTRY

HISTORY OF STOCK BROKING

The first proven purchase and sale of shares took place in Rome in the 2nd century BC. After the
fall of the Western Roman Empire, mediation became a profession only after the Renaissance,
when government bonds were negotiated in Italian city-states such as Genoa and Venice. In
1602, the Amsterdam Stock Exchange (now Euronext Amsterdam) became the first official stock
exchange to trade shares in the Dutch East India Company, which was the first company to issue
shares. In 1698, the London Stock Exchange opened in a cafeteria. On May 17, 1792, the New
York Stock Exchange opened under a (buttonwood tree) in New York City when 24
stockbrokers signed the buttonwood deal and agreed to exchange five securities under this
agreement.

HISTORY OF STOCK EXCHANGES IN INDIA

Securities trading in India dates back to the 18th century, when the East India Company started
trading in credit. The marketing of capital measures began in the 1830s in Bombay (now
Mumbai) with the shares of the Bank and the Cotton Press. The simple and informal beginnings
of Indian stock exchanges date back to the 1850s, when 22 stockbrokers in front of Bombay
Town Hall began trading under a banyan tree. The tree is still in the area now known as the
Horniman Circle.
The site was later converted to Banians at the intersection of Meadows Street, now known as
Mahatma Gandhi Road, a decade later. The change continued as the number of runners
increased, and eventually it was founded in 1874 in the so-called Dalal Street. This informal
group, known as the Native Association of Stocks and Brokers, was founded in 1875 as the
Bombay Stock Exchange (BSE). The BSE is the oldest stock exchange in Asia and was the first
recognized permanently under the Law on the Regulation of Securities Contracts. 1956th
The BSE followed in 1894 the Ahmedabad Stock Exchange, which focused on stock trading
with textile factories. The Calcutta Stock Exchange started operations in 1908 and began trading
in plantation and jute mill shares. It was followed by the Bolsa de Madras, which was founded in
1920.

MODERN HISTORY

In the period after independence BSE dominated the business volume. However, the low level of
transparency and the unreliable clearing and settlement systems, as well as other macroeconomic
factors, increased the need for financial market regulation and the SEBI was created in 1988 as a
non-statutory institution. It became a legal entity in 1992.

After Harshad Mehta's cheating in 1992, there was an urgent need for another stock market large
enough to compete with BSE and create transparency in the stock markets. This resulted in the
National Stock Exchange (NSE). It was founded in 1992, recognized as a stock exchange in
1993 and put on the market in 1994. It was the first exchange where the negotiations were
conducted electronically. In response to this competition, BSE also introduced in 1995 an
electronic trading system known as BSE Online (BOLT).

The BSE published in 1986 its sensitivity index, the Sensex, now known as S & P BSE Sensex,
with 1978-79 as the base year. This is an index of 30 companies and an index of reference
measures that measures the overall performance of the stock market. The index reached the level
of 1,000 in July 1990, 2,000 in January 1992, 4,000 in March 1992, 5,000 in October 1999 and
6,000 in February 2000. The stock market introduced capital derivatives in 2000 Launched in
June 2001, stock options in July 2001 and stock futures in November 2001. India's first free float
index, BSE Teck, was launched in July 2001.

Competitor NSE launched the reference exchange CNX Nifty in 1996, known today as the Nifty
50. It comprises 50 shares and serves as performance benchmark for the stock market. It
overhauled BSE in terms of electronic screen and derivative operations by launching the first
products and services of its kind on the market.

STOCK EXCHANGE CURRENT SCENARIO

BSE and NSE are not the only stock exchange in India. After the independence of the country,
23 exchanges without BSE were added. However, there are currently only seven recognized
exchanges. Apart from BSE and NSE, these are:

1.Calcutta Stock Exchange Ltd

2.Magadh Stock Exchange Ltd

3.Stock Exchange of Metropolitan of India Ltd

4.India International Exchange (India INX)

5.NSE IFSC Ltd.

All other exchanges were issued by SEBI.