SUMMER REPORT

ON

IN

SUBMITTED BY : AAYUSH AGARWAL

PROGRAMME : BBA

GYAN COLLEGE OF MANAGEMENT

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 PREFACE

India as a country has seen many social, political and economic upheaval in

the past. Even now Indians are among the most socially and economically

vulnerable people.

The Broad objective of the project is to equip the trainees with all the quality,

which is essential to face any circumstances, which can arise while providing

service to the clients.

The recent development in Indian economy has turned the existing situation.

Indian economy is now looking up. Government policies and private sector

initiatives has opened the floodgates to investment for the masses. And with

so many options available in the market people often get confused as which

is the right investment option. Interest rate has bottomed up.

Karvy with its two decades of experience in the financial market serves as a

nodal point to the Indian investors. It is providing the consultancy services in

all the financial aspects since 1982.

All these steps help me to understand how to cope up with different types of

people and there diversified need and satisfaction level.

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 ACKNOWLEDGEMENT

“WHATEVER WE DO AND WAHTEVER WE ACHIEVEDURING THE

BUT

“PRACTICE MAKES A MAN PERFECT BUT NOT UNTIL HE IS FULLY

EQUIPED WITH THE THEORETICAL KNOWLEDGE TAKEN AS HIS

ACCELERATING DRIVER”

Working here in karvy finapolisis – Lucknow was certainly a lovable and

cherishing experience for me; here I have not only learnt the practical aspects

of the business but also the theoretical aspect driving it.

I would like to thank Mr. Devasish Saxena (Branch Manager) for providing

me an opportunity to work with an esteemed organization such as Karvy

finapolisis-Lucknow.

I am thankful to Mr. Ajeet (Finance Executive) for guiding me all throughout

the project and that also without any hesitation despite of his rigorous

schedule.

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I would also like to thank to all the team members who work in a reputed

organization gave me an unending support from the project that has been

assigned to me. Here I would like to special thank to Mr. ABHISHEK, who

learnt me that how do you work in pressure in the organization.

The knowledge that I have acquired during the course has proved a great

help for me. Every step in my project had a demand of deep understanding of

the concepts which was only possible with the help of our professor and my

dear friends.

I would also like to express my gratitude to the respondents who took the pain

of taking out their time to lend me their opinion and views about the

organization. I have no words to thank Karvy employees who devoted their

precious time and I am highly grateful to them.

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 OBJECTIVE

The objective of the project is to make clients and let them know about the

different service offered by the organization. The project will accomplish to

understand the problem faced by the existing client and find ways to solve

their queries at your level.

Primary Objective

 To collect the data and analyze it to know the investment behavior of

the people of Lucknow.

 The awareness level of online share trading of the people of Lucknow.

 To know which is the most favorite investment option of the people and

why?

 To get the generic perception of people about the Karvy Consultants

Limited.

 Check the satisfaction level of the customers.

Secondary Objective

 To help company the existing investment scenario in the Lucknow.

 To help company formulate strategy, to woo the investors, on the basis

of the findings.

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 EXECUTIVE SUMMARY

The project report aims at determining the investment pattern of people of

Lucknow and the perception of investors towards various consultants. The

report also includes details about preferences of people to invest their saving

in securities, the concept of De-Mat account, their view towards financial

consultants and satisfaction level for the various services provided by Karvy

Stock Broking Ltd.

For completion of this report I am working at Karvy Stock Broking Ltd,

Fiazabad Road, Lucknow and surveyed. The satisfaction survey of customers

is done with the help of questionnaire. According to the survey done for

different investors it came into focus that banks got the lead position among

all others financial institutions where people want to invest. Maximum people

believe that security of the investment is important and equally important is

the security of the income from the investment. If the invested money is safe,

income is also sure and safe.

The next test an investor look in to is liquidity of the investment next in rank is

money in savings accounts, for such money could be withdrawn almost

immediately over the counter. The principle is higher the liquidity, lower is the

rate of interest. A structured questionnaire was constructed in order to

measure the responses of respondents on suitable scale so that they can be

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analyzed on SPSS. Primary data collection was done through questionnaire

and interviews and secondary data collection through company websites and

various previous research reports.

INTRODUCTION

If a person has more money than he need for current consumption, he is a

“potential investor”. He may deposit in a bank account to earn a fixed rate of

interest of purchase a speculative share on the stock market or buy gold or

contribute to a provident fund account or buy a piece of art or invest in some

other form.

Whatever his decision, the investor is essentially making a sacrifice in the

present in the hope of deriving benefits in future. Every investment decision

has two key concepts:

 Time

 Risk

While the sacrifice occurs in the present and is certain, the benefits come in

future and may be uncertain. The economic well being in the long run

depends significantly on how wisely or foolishly people invest.

SPECTRUM OF INVESTMENT AVENUES

FINANCIAL SECURITIES

Direct financial investment that are represented by negotiable securities, are

referred to as financial securities. The major financial securities available in

India-

 Equity Shares

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  Preference Shares

 Convertible Debentures

 Non-Convertible debentures

 Public Sector bonds

 Saving Certificates

 Gilt-edged

 Money-market securities

Non-Securities Financial Investments

A Non-Securities financial investments, unlike a financial security, represents

a financial investment that is not transferable or negotiable. A major non-

securitized financial investment available in India are-

 Bank Deposits

 Post Office Deposits

 Company Fixed Deposits

 Provident Fund Schemes

 National Saving Certificates

 Life Insurance

Mutual Fund Schemes

A Mutual Fund represents a collective investment device. Instead of directly

buying financial securities, a person can buy the units/shares of various

schemes floated by Mutual funds. Three types of schemes are there-

 Growth Schemes

 Income Schemes

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  Balanced (growth/Income) Schemes

Real Assets

The investment avenues discussed so far are broadly referred to as financial

investments as they represent financial claims. A real asset, on the other

hand, represents physical investments. The important categories of real

assets are

 Real Estate

 Gold and Silver

 Precious Stones

 Art Objects

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SPEC

OVERVIEW OF THE ORGANIZATION

KARVY, is a premier integrated financial services provider, and ranked among

the top five in the country in all its business segments, services over 16

million individual investors in various capacities, and provides investor

services to over 300 corporates, comprising the who is who of Corporate

India. KARVY covers the entire spectrum of financial services such as Stock

broking, Depository Participants, Distribution of financial products like mutual

funds, bonds, fixed deposit, Merchant Banking & Corporate Finance,

Insurance Broking, Commodities Broking, Personal Finance Advisory

Services, placement of equity, IPO’s, among others. Karvy has a professional

management team and ranks among the best in technology, operations, and

more importantly, in research of various industrial segments.

SEBI Committee has approved the use of Internet as an Order Routing

System (ORS) for communicating clients’ orders to the exchanges through

brokers. ORS enables investors to place orders with his broker and have

control over the information and quotes and to hit the quote on an on-line

basis.

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NSE launched internet trading in early February 2000. It is the first stock

exchange in the country to provide web-based access to investors to trade

directly on the exchange.

INTRODUCTION TO THE ORGANIZATION

The birth of Karvy was on a modest scale in 1981. It began with the vision

and enterprise of a small group of practicing Chartered Accountants who

founded the flagship company Karvy Consultants Limited. We started with

consulting and financial accounting automation, and carved inroads into the

field of registry and share accounting by 1985. Since then, we have utilized

our experience and superlative expertise to go from strength to strength to

better our services, to provide new ones, to innovate, diversify and in the

process, evolved Karvy as one of India’s premier integrated financial service

enterprise.

Thus 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 we have made this journey by taking the route

of quality service, path breaking innovations in service, versatility in service

and finally totality in service.

Our highly qualified manpower, cutting-edge technology, comprehensive

infrastructure and total customer-focus has secured for us the position of an

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emerging financial services giant enjoying the confidence and support of an

enviable clientele across diverse fields in the financial world.

Our values and vision of attaining total competence in our servicing has

served as the building block for creating a great financial enterprise, which

stands solid on our fortresses of financial strength - our various companies.

With the experience of years of holistic financial servicing behind us and

years of complete expertise in the industry to look forward to, we have now

emerged as a premier integrated financial services provider.

And today, we can look with pride at the fruits of our mastery and experience

– comprehensive financial services that are competently segregated to

service and manage a diverse range of customer requirements.

Milestone

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KARVY GROUP OF COMPANIES WITH THEIR DIFFERENT TYPES OF

COLOUR LOGO

1. Karvy Consultants Limited

2. Karvy Stock Broking Limited

3. Karvy Investors Services Limited

4. Karvy Computershare Pvt. Limited

5. Karvy Global Services Limited

6. Karvy Comtrade Limited

7. Karvy Insurance Broking Private Limited

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As the flagship company of the Karvy Group, Karvy Consultants Limited has

always remained at the helm of organizational affairs, pioneering business

policies, work ethic and channels of progress.

Having emerged as a leader in the registry business, the first of the

businesses that we ventured into, we have now transferred this business into

a joint venture with Computer share Limited of Australia, the world’s largest

registrar. With the advent of depositories in the Indian capital market and the

relationships that we have created in the registry business, we believe that we

were best positioned to venture into this activity as a Depository Participant.

We were one of the early entrants registered as Depository Participant with

NSDL (National Securities Depository Limited), the first Depository in the

country and then with CDSL (Central Depository Services Limited). Today,

we service over 6 lakhs customer accounts in this business spread across

over 250 cities/towns in India and are ranked amongst the largest Depository

Participants in the country. With a growing secondary market presence, we

have transferred this business to Karvy Stock Broking Limited (KSBL), our

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associate and a member of NSE, BSE and HSE (Hyderabad stock

Exchange).

IT enabled services

Our Technology Services division forms the ideal platform to unleash our

technology initiatives and make our presence felt on the Internet. Our past

achievements include many quality websites designed, developed and

deployed by us. We also possess our own web hosting facilities with

dedicated bandwidth and a state-of-the-art server farm (data center) with

services functioning on a variety of operating platforms such as Windows,

Solaris, Linux and Unix.

The corporate website of the company, “www.karvy.com”, gives access to

in-depth information on financial matters including Mutual Funds, IPO’s,

Fixed Income Schemes, Insurance, Stock Market and much more. A link

called ‘Resource Center’, devoted solely to research conducted by our team

of experts on various financial aspects like ‘Sector Research’, deals

exclusively with in-depth analysis of the key sectors of the Indian economy.

Besides, a host of other links like ‘My Portfolio’ which acts as a personalized

and customized financial measure, makes this site extremely informative

about investment options, market trends, news as also about our company

and each of the services offered here.

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Member - National Stock Exchange (NSE), The Bombay Stock Exchange

(BSE), and The Hyderabad Stock Exchange (HSE).

Karvy Stock Broking Limited, one of the cornerstones of the Karvy edifice,

flows freely towards attaining diverse goals of the customer through varied

services. Creating a plethora of opportunities for the customer by opening up

investment vistas backed by research-based advisory services. Here, growth

knows no limits and success recognizes no boundaries. Helping the customer

create waves in his portfolio and empowering the investor completely is the

ultimate goal.

Stock Broking Services

It is an undisputed fact that the stock market is unpredictable and yet enjoys a

high success rate as a wealth management and wealth accumulation option.

The difference between unpredictability and a safety anchor in the market is

provided by in-depth knowledge of market functioning and changing trends,

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planning with foresight and choosing one & rescue’s options with care. This is

what we provide in our Stock Broking services.

We offer services that are beyond just a medium for buying and selling stocks

and shares. Instead we provide services which are multi dimensional and

multi-focused in their scope. There are several advantages in utilizing our

Stock Broking services, which are the reasons why it is one of the best in the

country.

We offer trading on a vast platform; National Stock Exchange, Bombay

Stock Exchange and Hyderabad Stock Exchange. More importantly, we

make trading safe to the maximum possible extent, by accounting for several

risk factors and planning accordingly. We are assisted in this task by our in-

depth research, constant feedback and sound advisory facilities. Our highly

skilled research team, comprising of technical analysts as well as

fundamental specialists, secure result-oriented information on market trends,

market analysis and market predictions. This crucial 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

predicted, The Mid-session Report, timed 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 & duo; Karvy; The Finapolisis & duo;, which analyzes the latest

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stock market trends and takes a close look at the various investment options,

and products available in the market, while a weekly report, called & duo;

Karvy Bazaar Baatein & duo;, keeps you more informed on the immediate

trends in the stock market. In addition, our specific industry reports give

comprehensive information on various industries. Besides this, we also offer

special portfolio analysis packages that provide daily technical advice on

scrip’s for successful portfolio management and provide customized advisory

services to help you make the right financial moves that are specifically suited

to your portfolio.

Our Stock Broking services are widely networked across India, with the

number of our trading terminals providing retail stock broking facilities. Our

services have increasingly offered customer oriented convenience, which we

provide to a spectrum of investors, high-net worth or otherwise, with equal

dedication and competence.

But true to our spirit, this success is not our final destination, but just a

platform to launch further enhanced quality services to provide you the latest

in convenient, customer-friendly stock management.

Over the years we have ensured that the trust of our customers is our biggest

returns. Factors such as our success in the Electronic custody business has

helped build on our tradition of trust even more. Consequentially our retail

client base expanded very fast.

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To empower the investor further we have made serious efforts to ensure that

our research calls are disseminated systematically to all our stock broking

clients through various delivery channels like email, chat, SMS, phone calls

etc.

Our foray into commodities broking has been path breaking and we are in the

process of converting existing traders in commodities into the more organized

mainstream of trading in commodity futures, both as a trading and risk

hedging mechanism.

In the future, our focus will be on the emerging businesses and to meet this

objective, we have enhanced our manpower and revitalized our knowledge

base with enhances focus on Futures and Options as well as the commodities

business.

Depositary Participants (D P)

a Depositary is a Company where the shares of an individual are held in the

electronic form, at the request of the shareholder. This eliminates the physical

form of holding.

The onset of the technology revolution in financial services Industry saw the

emergence of Karvy as an electronic custodian registered with National

Securities Depository Ltd (NSDL) and Central Securities Depository Ltd

(CSDL) in 1998. Karvy set standards enabling further comfort to the investor

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by promoting paperless trading across the country and emerged as the top 3

Depository Participants in the country in terms of customer serviced.

The National Securities Depository Ltd. Was promoted by IDBI, UTI, SBI, and

NSE. The Central Securities Depositary Ltd was promoted by BSE.

Offering a wide trading platform with a dual membership at both NSDL and

CDSL, we are a powerful medium for trading and settlement of

dematerialized shares. We have established live DPMs, Internet access to

accounts and an easier transaction process in order to offer more

convenience to individual and corporate investors. A team of professional and

the latest technological expertise allocated exclusively to our demat division

including technological enhancements like SPEED-e, make our response

time quick and our delivery impeccable. A wide national network makes our

efficiencies accessible to all.

NSDL

National Securities Depositary Ltd is a depositary promoted by UTI, IDBI, SBI,

& NSE who hold the securities in electronic form on behalf of the beneficiary

holder.

Insurance policy by NSDL

Shares in the electronic segment are 100 percent secure. The agreement

between you and the DP indemnifies you against misuse of your electronic

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holding by any party, in any manner whatsoever. You may legally invoke such

indemnity and be 100 percent compensated. A comprehensive Insurance

Policy has been taken by NSDL which covers your DP account so as to

protect you against any losses, breach of security etc.

CDSL

Central Depositaries Limited is a Depositary promoted by BSE.

Physical share certificates with duplicate distinctive numbers are essentially

gorged certificates. The R&T would identify and reject the certificates. The

concerned Stock Exchanges are informed of the details.

Distribution of Financial Products

The paradigm shift from pure selling to knowledge based selling drives the

business today. With our wide portfolio offerings, we occupy all segments in

the retail financial services industry.

A 1600 team of highly qualified and dedicated professionals drawn from the

best of academic and professional backgrounds are committed to maintaining

high levels of client service delivery. This has propelled us to a position

among the top distributors for equity and debt issues with an estimated

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market share of 15% in terms of applications mobilized, besides being

established as the leading procurer in all public issues.

To further tap the immense growth potential in the capital markets we

enhanced the scope of our retail brand, Karvy – the Finapolisis, thereby

providing planning and advisory services to the mass affluent. Here we

understand the customer needs and lifestyle in the context of present

earnings and provide adequate advisory services that will necessarily help in

creating wealth. Judicious planning that is customized to meet the future

needs of the customer deliver a service that is exemplary. The market-savvy

and the ignorant investors, both find this service very satisfactory. The edge

that we have over competition is our portfolio of offerings and our professional

expertise. The investment planning for each customer is done with an

unbiased attitude so that the service is truly customized.

Our monthly magazine, Finapolisis, provides up-dated market information on

market trends, investment options, opinions etc. Thus empowering the

investor to base every financial move on rational thought and prudent

analysis and embark on the path to wealth creation.

Advisory Services

Under our retail brand ‘Karvy – the Finapolisis', we deliver advisory services

to a cross-section of customers. The service is backed by a team of dedicated

and expert professionals with varied experience and background in handling

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investment portfolios. They are continually engaged in designing the right

investment portfolio for each customer according to individual needs and

budget considerations with a comprehensive support system that focuses on

trading customers' portfolios and providing valuable inputs, monitoring and

managing the portfolio through varied technological initiatives. This is made

possible by the expertise we have gained in the business over the years.

Another venture towards being investor-friendly is the circulation of a monthly

magazine called ‘Karvy - the Finapolisis'. Covering the latest of market news,

trends, investment schemes and research-based opinions from experts in

various financial fields.

Private Client Group

This specialized division was set up to cater to the high net worth individuals

and institutional clients keeping in mind that they require a different kind of

financial planning and management that will augment not just existing

finances but their life-style as well. Here we follow a hard-nosed business

approach with the soft touch of dedicated customer care and personalized

attention.

For this purpose we offer a comprehensive and personalized service that

encompasses planning and protection of finances, planning of business

needs and retirement needs and a host of other services, all provided on a

one-to-one basis.

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Our research reports have been widely appreciated by this segment. The

delivery and support modules have been fine tuned by giving our clients

access to online portfolio information, constant updates on their portfolios as

well as value-added advice on portfolio churning, sector switches etc. The

investment recommendations given by our research team in the cash market

has enjoyed a high success rate.

MERCHANT BANKING

Recognized as a leading merchant banker in the country, we are registered

with SEBI as a Category I merchant banker. This reputation was built by

capitalizing on opportunities in corporate consolidations, mergers and

acquisitions and corporate restructuring, which have earned us the reputation

of a merchant banker. Raising resources for corporate or Government

Undertaking successfully over the past two decades have given us the

confidence to renew our focus in this sector.

Our quality professional team and our work-oriented dedication have

propelled us to offer value-added corporate financial services and act as a

professional navigator for long term growth of our clients, who include leading

corporates, State Governments, foreign institutional investors, public and

private sector companies and banks, in Indian and global markets.

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We have also emerged as a trailblazer in the arena of relationships, both at

the customer and trade levels because of our unshakable integrity, seamless

service and innovative solutions that are tuned to meet varied needs. Our

team of committed industry specialists, having extensive experience in capital

markets, further nurtures this relationship.

Our financial advice and assistance in restructuring, divestitures, acquisitions,

de-mergers, spin-offs, joint ventures, privatization and takeover defense

mechanisms have elevated our relationship with the client to one based on

unshakable trust and confidence.

We have traversed wide spaces to tie up with the world’s largest transfer

agent, the leading Australian company, Computershare Limited. The company

that services more than 75 million shareholders across 7000 corporate clients

and makes its presence felt in over 12 countries across 5 continents has

entered into a 50-50 joint venture with us.

With our management team completely transferred to this new entity, we will

aim to enrich the financial services industry than before. The future holds new

arenas of client servicing and contemporary and relevant technologies as we

are geared to deliver better value and foster bigger investments in the

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business. The worldwide network of Computershare will hold us in good stead

as we expect to adopt international standards in addition to leveraging the

best of technologies from around the world.

Excellence has to be the order of the day when two companies with such

similar ideologies of growth, vision and competence, get together.

MUTUAL FUND SERVICES

We have attained a position of immense strength as a provider of across-the-

board transfer agency services to AMCs, Distributors and Investors.

Nearly 40% of the top-notch AMCs including prestigious clients like Deutsche

AMC and UTI swear by the quality and range of services that we offer.

Besides providing the entire back office processing, we provide the link

between various Mutual Funds and the investor, including services to the

distributor, the prime channel in this operation.

Carrying the ‘limitless' ideology forward, we have explored new dimensions in

every aspect of Mutual Fund servicing right from volume management, cost

effective pricing, delivery in the least turnaround time, efficient back-office and

front-office operations to customized service. We have been with the AMCs

every step of the way, helping them serve their investors better by offering

them a diverse and customized range of services. The ‘first to market'

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approach that is our anthem has earned us the reputation of an innovative

service provider with a visionary bent of mind.

Our service enhancements such as ‘Karvy Converz', a full-fledged call center,

a top-line website (www.karvymfs.com), the ‘m-investor' and many more,

creating a galaxy of customer advantages.

ISSUE REGISTRY

In our voyage towards becoming the largest transaction-processing house in

the Indian Corporate segment, we have mobilized funds for numerous

corporate, Karvy has emerged as the largest transaction-processing house

for the Indian Corporate sector. With an experience of handling over 700

issues, Karvy today, has the ability to execute voluminous transactions and

hard-core expertise in technology applications have gained us the No.1 slot in

the business. Karvy is the first Registry Company to receive ISO 9002

certification in India that stands testimony to its stature

Karvy has the backing of skilled human resources complemented by requisite

technological packages to ensure a faster processing capability. Karvy has

the benefit of a good synergy between depositories and registry that enables

faster resolution to related customer queries. Apart from its unique investor

servicing presence in all the phases of a public Issue, it is actively

coordinating with both the main depositories to develop special models to

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enable the customer to access depository (NSDL, CDSL) services during an

IPO.

Our trust-worthy reputation, competent manpower and high-end technology

and infrastructure are the solid foundations on which our success is built.

CORPORATE SHAREHOLDER SERVICES

Karvy has been a customer centric company since its inception. Karvy offers

a single platform servicing multiple financial instruments in its bid to offer

complete financial solutions to the varying needs of both corporate and retail

investors where an extensive range of services are provided with great

volume-management capability.

Today, Karvy is recognized as a company that can exceed customer

expectations which is the reason for the loyalty of customers towards Karvy

for all his financial needs. An opinion poll commissioned by “The Merchant

Banker Update” and conducted by the reputed market research agency,

MARG revealed that Karvy was considered the “Most Admired” in the

registrar category among financial services companies.

We have grown from being a pure transaction processing business, to one of

complete shareholder solutions.

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The specialist Business Process Outsourcing unit of the Karvy Group. The

legacy of expertise and experience in financial services of the Karvy Group

serves us well as we enter the global arena with the confidence of being able

to deliver and deliver well.

Here we offer several delivery models on the understanding that business

needs are unique and therefore only a customized service could possibly fit

the bill. Our service matrix has permutations and combinations that create

several options to choose from.

Be it in re-engineering and managing processes or delivering new

efficiencies, our service meets up to the most stringent of international

standards. Our outsourcing models are designed for the global customer and

are backed by sound corporate and operations philosophies, and domain

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expertise. Providing productivity improvements, operational cost control, cost

savings, improved accountability and a whole gamut of other advantages.

We operate in the core market segments that have emerging requirements for

specialized services. Our wide vertical market coverage includes Banking,

Financial and Insurance Services (BFIS), Retail and Merchandising, Leisure

and Entertainment, Energy and Utility and Healthcare.

Our horizontal offerings do justice to our stance as a comprehensive BPO unit

and include a variety of services in Finance and Accounting Outsourcing

Operations, Human Resource Outsourcing Operations, Research and

Analytics Outsourcing Operations and Insurance Back Office Outsourcing

Operations.

At Karvy Commodities, we are 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.

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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

supports these advantages. Regular trading workshops and seminars are

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

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 & dash;

farmers, exporters, importers, manufacturers and the Government of India

itself.

At Karvy Insurance Broking Pvt. Ltd., we provide both life and non-life

insurance products to retail individuals, high net-worth clients and corporate.

With the opening up of the insurance sector and with a large number of

private players in the business, we are in a position to provide tailor made

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policies for different segments of customers. In our journey to emerge as a

personal finance advisor, we will be better positioned to leverage our

relationships with the product providers and place the requirements of our

customers appropriately with the product providers. With Indian markets

seeing a sea change, both in terms of investment pattern and attitude of

investors, insurance is no more seen as only a tax saving product but also as

an investment product. By setting up a separate entity, we would be

positioned to provide the best of the products available in this business to our

customers.

Our wide national network, spanning the length and breadth of India, further

supports these advantages. Further, personalized service is provided here by

a dedicated team committed in giving hassle-free service to the clients.

BORD OF DIRECTORS

Mr. C. Parthasarathy

Chairman

Mr. M. Yugandhar

Managing Director

Mr. M. S. Ramakrishna

Director

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 Mr. Akash Mehta

Director

Mr. Peter Wing Hung So

Director

OUR ALLIANCES

Karvy Computershare Private Limited is a 50:50 joint venture of Karvy

Consultants Limited and Computershare Limited, Australia. Computereshare

Limited is world's largest and only global share registry, and a leading

financial market services provider to the global securities industry.

The joint venture with Computershare, reckoned as the largest registrar in the

world, servicing over 60 million shareholder accounts for over 7,000

corporations across eleven countries spread across five continents.

Computershare manages more than 70 million shareholder accounts for over

13,000 corporations around the world.

Karvy Computershare Private Limited, today, is India's largest Registrar and

Share Transfer Agent servicing over 300 corporates and mutual funds and 16

million investors.

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ACHIVEMENTS

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

 India's No. 1 Registrar & Securities Transfer Agents

 Among the to top 3 Depository Participants

 Largest Network of Branches & Business Associates

 ISO 9002 certified operations by DNV

 Among top 10 Investment bankers

 Largest Distributor of Financial Products

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

 Full Fledged IT driven operations

34
 INTRODUCTION OF TRADING OR TRADERS

TRADE MANAGEMENT

NSE introduced for the first time in India, fully automated screen based

trading. It uses a modern, fully computerized trading system designed to offer

investors across the length and breadth of the country a safe and easy way to

invest.

The NSE trading system called 'National Exchange for Automated Trading'

(NEAT) is a fully automated screen based trading system, which adopts the

principle of an order driven market.

35
First of all we should to know that what is trading or trade.

A trade is an activity in which a buy or a sell order match with each other

matching of two orders is done automatically by the system. Whenever a

trade takes place, the system sends a trade confirmation message to each of

the users involved in the trade. The trade confirmation slip gets printed at the

trader workstation of the user with a unique trade number. The system also

broadcasts a message to the entire market through the ticker window

displaying the details of the trade.

This section describes trade-related activities like viewing the trades, trade

modification or cancellation, etc. Before the trade is affected, the system

performs checks with respect to the following parameters:-

 The security in which the trade is to be affected is not suspended from

operations.

 Trading members involved in the potential trade are not suspended

from operations.

 Turnover limits for the trading members involved are not exceeded.

Once the trade for an order entered is confirmed by the system, a message is

sent to the trader workstation. The system generates a Trade Confirmation

Slip that is printed on the printer of the trader workstation.

TRADE MODIFICATION

36
The user can use trade modification facility to request for modifying trades

done during the day. The user can request the Exchange to modify only the

trade quantity field. Moreover, the new quantity requested must be lower than

the original trade quantity.

If the user is a Corporate Manager of a trading member firm, he can request

for trade modification for the trade’s o any dealer of the trading members

firms and if he is a Branch Manager of a branch, then he can request for trade

modification for any dealer of the branch of the trading member firm.

The user can request for trade modification either from the previous trades

screen or by using the function key provided in the workstation. Trade

Modification Request is sent to the exchange for approval and message to

that effect is displayed in the message window. The counterparty to the trade

also receives this message. The counterparty then has to make a similar

request for the same modified quantity on the same trading day. Once both

the parties to trade send rejects it. The message to that effect is displayed in

the message window.

In case a request for trade modification is approved by the Exchange, the

parties to trade receive a system message confirming the trade modification

and the trade modification slip is printed at their respective trader

workstations. If the Exchange rejects the trade modification request, the trade

modification rejection slip will be printed at their respective trader

workstations.

37
TRADE CANCELLATION

The user can use trade cancellation screen for canceling trades done during

the day. If the user is a corporate manager of a trading member firm, he can

request for trade cancellation for the trades of any dealer of the trading

members firm and if he is a branch manager of a branch, then he can request

for trade cancellation for the trades for any dealer of the branch of the trading

member firm.

The user can request for trade cancellation either from the previous trades

screen or by using the function key provided in the workstation. The trade

cancellation request is sent to the Exchange for approval and message to that

effect is displayed in the message window. The counterparty to the trade also

receives the message.

The counterparty then has to make similar request on the same trading day.

Once both the parties to trade send the trade cancellation request, the

exchange either approves or rejects it. The message to that effect is

displayed in the message window.

When a request for the trade cancellation is approved by the Exchange, the

parties to trade receive a system message confirming the trade cancellation

and the trade cancellation slip is printed at their respective trader

workstations. If the Exchange rejects the trade cancellation request, the trade

cancellation rejection slip is printed at their respective trader workstations.

38
The trading members can participate in the Exchange initiated auctions by

entering orders as a solicitor.

Market Segments

The Exchange operates the following sub-segments in the Equities segment:

 Rolling Settlement

 Limited Physical Market

 Institutional Segment

 Trade for Trade Segment

Rolling Settlement

In a rolling settlement, each trading day is considered as a trading period and

trades executed during the day are settled based on the net obligations for

the day.

At NSE, trades in rolling settlement are settled on a T+2 basis i.e. on the 2nd

working day. For arriving at the settlement day all intervening holidays, which

include bank holidays, NSE holidays, Saturdays and Sundays are excluded.

Typically trades taking place on Monday are settled on Wednesday,

Tuesday's trades settled on Thursday and so on.

Limited Physical Market

39
Pursuant to the directive of SEBI to provide an exit route for small investors

holding physical shares in securities mandated for compulsory dematerialized

settlement, the Exchange has provided a facility for such trading in physical

shares not exceeding 500 shares. This market segment is referred to as

‘Limited Physical Market’. The Limited Physical Market was introduced on

June 7, 1999.

Salient Features of Limited Physical Market

 Trading is conducted in the Odd Lot market (market type O) with Book

Type ‘OL’ and series ‘BT’.

 Order quantities should not exceed 500 shares.

 The base price and price bands applicable in the Limited Physical

Market are same as those applicable for the corresponding Normal

Market on that day.

 Trading hours are the same as that of the normal market.

 Settlement for all trades are done on a trade-for-trade basis and

delivery obligations arise out of each trade.

 Orders get matched when both the price and the quantity match in the

buy and sell order. Orders with the same price and quantity match on

time priority.

40
  Trading members are required to ensure that shares are duly

registered in the name of the investor(s) before entering orders on their

behalf on a trade date.

Institutional Segment

The Reserve Bank of India had vide a press release on October 21, 1999,

clarified that inter-foreign-institutional-investor (inter-FII) transactions do not

require prior approval or post-facto confirmation of the Reserve Bank of India,

since such transactions do not affect the percentage of overall FII holdings in

Indian companies. (Inter FII transactions are however not permitted in

securities where the FII holdings have already crossed the overall limit due to

any reason).

To facilitate execution of such Inter-Institutional deals in companies where the

cut-off limit of FII investment has been reached, the Exchange introduced a

new market segment on December 27, 1999.

The securities where FII investors and FII holding has reached the cut-off limit

as specified by RBI (2% lower than the ceiling specified by RBI) from time to

time would be available for trading in this market type for exclusive selling by

FII clients. The cut off limits for companies with 24% ceiling is 22%, for

companies with 30% ceiling, is 28% and for companies with 40% ceiling is

38%. Similarly, the cut off limit for public sector banks (including State Bank of

India) is 18% whose ceiling is 20%. The list of securities eligible / become

41
ineligible for trading in this market type would be notified to members from

time to time.

Salient Features of the Institutional segment

 Trading in this market segment is available for institutional investors

only. In order to ensure that the overall FII ceiling limits are not

violated, trading members shall be allowed to enter sell orders in this

market segment only for their FII clients. However, members can enter

buy orders on behalf of FII/FI clients.

 Trading takes place under series type 'IL' under market type 'N'

 The minimum tradable quantity in this market is 1.

 Trading shall be done on T+2 rolling settlement basis only. Settlement

of transactions shall be on dematerialized mode only

 The base price and the price bands applicable for this segment are the

same as those applicable for the corresponding normal market on that

day.

 In case of buy/sell orders, members shall be required to enter the

custodial participant code at the time of order entry. Members shall not

be allowed the facility of trade warehousing for the IL Market segment.

 All Good-till-cancelled (GTC)/Good-till-date (GTD) orders placed and

remaining as outstanding orders in this segment at the close of market

hours shall be automatically cancelled by the system at the end of the

day.

42
Trade for Trade Segment

Trading in this segment is available only for the securities

 Which have not established connectivity with both the depositories as

per SEBI directive. The list of these securities is notified by SEBI from

time to time.

 On account of surveillance action

RETDEBT Market (RDM)

Trading in the Retail Debt Market takes place in the same manner in which

the trading takes place in the equities (Capital Market) segment. The

RETDEBT Market facility on the NEAT system of Capital Market Segment is

used for entering transactions in RDM session.

Members eligible for trading in RDM segment

Trading Members who are registered members of NSE in the Capital Market

segment of Wholesale Debt Market segment are allowed to trade in retail

Debt Market (RDM) subject to fulfilling the Capital adequacy norms.

Trading Cycle

43
Trading in Retail Debt Market is permitted under Rolling Settlement, where

in each trading day is considered as a trading period and trades executed

during the day are settled based on the net obligations for the day. Settlement

is on a T+2 basis i.e. on the 2nd working day. For arriving at the settlement day

all intervening holidays, which include4 bank holidays, NSE holidays,

Saturdays and Sundays are excluded. Typically trades taking place on

Monday are settled on Wednesday, Tuesday’s trades settled on Thursday and

so on.

Trade Verification

A facility to verify trades is available on the NSE website. Using this facility, an

investor who has received a contract note from a trading member of the

Exchange, can check whether the trade has been executed on the Exchange.

This facility is available on the NSE website for the Capital Market segment, F

& o (Derivatives) segment and Retail Debt Market Segment.

Circuit Breakers

The Exchange has implemented index-based market-wide circuit breakers in

compulsory rolling settlement with effect from July 02, 2001. In addition to the

circuit breakers, price bands are also applicable on individual securities.

44
Price Bands

Daily price bands are applicable on securities as below:

 Daily price bands of 2% (either way) on specified securities

 Daily price bands of 5% (either way) on specified securities

 Daily price bands of 10% (either way) on specified securities

 No price bands are applicable on: scrip’s on which derivative products

are available or scrip’s included in indices on which derivative products

are available.

 Price bands of 20% (either way) on all remaining scrips (including

debentures, warrants, preference shares etc).

 The price bands for the securities in the Limited Physical Market are

the same as those applicable for the securities in the Normal Market.

 For Auction market the price bands of 20% are applicable.

 In order to prevent members from entering orders at non-genuine

prices in such securities, the Exchange has fixed operating range of

20% for such securities.

Index-based Market-wide Circuit Breakers

The index-based market-wide circuit breaker system applies at 3 stages of

the index movement, either way viz. at 10%, 15% and 20%. These circuit

breakers when triggered bring about a coordinated trading halt in all equity

45
and equity derivative markets nationwide. The market-wide circuit breakers

are triggered by movement of either the BSE Sensex or the NSE S&P CNX

Nifty, whichever is breached earlier.

 In case of a 10% movement of either of these indices, there would be a

one-hour market halt if the movement takes place before 1:00 p.m. In

case the movement takes place at or after 1:00 p.m. but before 2:30

p.m. there would be trading halt for ½ hour. In case movement takes

place at or after 2:30 p.m. there will be no trading halt at the 10% level

and market shall continue trading.

 In case of a 15% movement of either index, there shall be a two-hour

halt if the movement takes place before 1 p.m. If the 15% trigger is

reached on or after 1:00p.m. but before 2:00 p.m., there shall be a

one-hour halt. If the 15% trigger is reached on or after 2:00 p.m. the

trading shall halt for remainder of the day.

 In case of a 20% movement of the index, trading shall be halted for the

remainder of the day.

These percentages are translated into absolute points of index variations on a

quarterly basis. At the end of each quarter, these absolute points of index

variations are revised for the applicability for the next quarter. The absolute

points are calculated based on closing level of index on the last day of the

trading in a quarter and rounded off to the nearest 10 points in case of S&P

CNX Nifty.

46
Trading Locations

Till the advent of NSE, an investor wanting to transact in a security not traded

on the nearest exchange had to route orders through a series of

correspondent brokers to the appropriate exchange. This resulted in a great

deal of uncertainty and high transaction costs. One of the objectives of NSE

was to provide a nationwide trading facility and to enable investors spread all

over the country to have an equal access to NSE.

NSE has made it possible for an investor to access the same market and

order book, irrespective of location, at the same price and at the same cost.

NSE uses sophisticated telecommunication technology through which

members can trade remotely from their offices located in any part of the

country. NSE trading terminals are present in various cities and towns all over

India.

Trading System

NSE operates on the 'National Exchange for Automated Trading' (NEAT)

system, a fully automated screen based trading system, which adopts the

principle of an order driven market. NSE consciously opted in favour of an

order driven system as opposed to a quote driven system. This has helped

reduce jobbing spreads not only on NSE but in other exchanges as well, thus

reducing transaction costs.

 Market Types

47
  Order Books

 Order Matching Rules

 Order Conditions

Market Types

The NEAT system has four types of market. They are:

Normal Market

All orders which are of regular lot size or multiples thereof are traded in the

Normal Market. For shares that are traded in the compulsory dematerialized

mode the market lot of these shares is one. Normal market consists of

various book types wherein orders are segregated as Regular lot orders,

Special Term orders, and Negotiated Trade Orders and Stop Loss orders

depending on their order attributes.

Odd Lot Market

All orders whose order size is less than the regular lot size are traded in the

odd-lot market. An order is called an odd lot order if the order size is less than

regular lot size. These orders do not have any special terms attributes

attached to them. In an odd-lot market, both the price and quantity of both the

orders (buy and sell) should exactly match for the trade to take place.

Currently the odd lot market facility is used for the Limited Physical Market as

per the SEBI directives.

48
AUCTION

Auctions are initiated by the Exchange on behalf of trading members for

settlement related reasons. The main reasons are Shortages, Bad Deliveries

and Objections. There are three types of participants in the auction market.

 Initiator: - the party who initiates the auction process is called an

initiator.

 Competitor: - The party who enters on the same side as of the initiator

is called a competitor.

 Solicitor: - The party who enters on the same side as of the initiator is

called a solicitor.

Spot Market

Spot orders are similar to the normal market orders except that spot orders

have different settlement periods vis-à-vis normal market. These orders do

not have any special terms attributes attached to them. Currently the Spot

Market is not in use.

Order Books

The NSE trading system provides complete flexibility to members in the kinds

of orders that can be placed by them. Orders are first numbered and time-

stamped on receipt and then immediately processed for potential match.

Every order has a distinctive order number and a unique time stamp on it. If a

49
match is not found, then the orders are stored in different 'books'. Orders are

stored in price-time priority in various books in the following sequence:

 Best Price

 Within Price, by time priority.

Price priority means that if two orders are entered into the system, the order

having the best price gets the higher priority. Time priority means if two orders

having the same price are entered, the order that is entered first gets the

higher priority.

The Equities segment has following types of books:

Regular Lot Book

The Regular Lot Book contains all regular lot orders that have none of the

following attributes attached to them.

 All or None (AON)

 Minimum Fill (MF)

 Stop Loss (SL)

Special Terms Book

The Special Terms book contains all orders that have either of the following

terms attached:

50
  All or None (AON)

 Minimum Fill (MF)

Note: Currently, special term orders i.e. AON and MF are not available on the

system as per the SEBI directives.

Negotiated Trade Book

The Negotiated Trade book contains all negotiated order entries captured by

the system before they have been matched against their counterparty trade

entries. These entries are matched with identical counterparty entries only. It

is to be noted that these entries contain a counterparty code in addition to

other order details.

Stop-Loss Book

Stop Loss orders are stored in this book till the trigger price specified in the

order is reached or surpassed. When the trigger price is reached or

surpassed, the order is released in the Regular lot book.

The stop loss condition is met under the following circumstances:

Sell order - A sell order in the Stop Loss book gets triggered when the last

traded price in the normal market reaches or falls below the trigger price of

the order.

51
Buy order - A buy order in the Stop Loss book gets triggered when the last

traded price in the normal market reaches or exceeds the trigger price of the

order.

Odd Lot Book

The Odd lot book contains all odd lot orders (orders with quantity less than

marketable lot) in the system. The system attempts to match an active odd lot

order against passive orders in the book. Currently, pursuant to a SEBI

directive, the Odd Lot Market is being used for orders that have quantity less

than or equal to 500 viz. the Limited Physical Market.

Spot Book

The Spot lot book contains all spot orders (orders having only the settlement

period different) in the system. The system attempts to match an active spot

lot order against the passive orders in the book. Currently the Spot Market

book type is not in use.

Auction Book

This book contains orders that are entered for all auctions. The matching

process for auction orders in this book is initiated only at the end of the

solicitor period.

52
Order Matching Rules

The best buy order is matched with the best sell order. An order may match

partially with another order resulting in multiple trades. For order matching,

the best buy order is the one with the highest price and the best sell order is

the one with the lowest price. This is because the system views all buy orders

available from the point of view of a seller and all sell orders from the point of

view of the buyers in the market. So, of all buy orders available in the market

at any point of time, a seller would obviously like to sell at the highest possible

buy price that is offered. Hence, the best buy order is the order with the

highest price and the best sell order is the order with the lowest price.

Members can proactively enter orders in the system, which will be displayed

in the system till the full quantity is matched by one or more of counter-orders

and result into trade(s) or is cancelled by the member. Alternatively, members

may be reactive and put in orders that match with existing orders in the

system. Orders lying unmatched in the system are 'passive' orders and orders

that come in to match the existing orders are called 'active' orders. Orders are

always matched at the passive order price. This ensures that the earlier

orders get priority over the orders that come in later.

Order Conditions

A Trading Member can enter various types of orders depending upon his/her

requirements. These conditions are broadly classified into three categories:

53
time related conditions, price-related conditions and quantity related

conditions.

Time Conditions

DAY - A Day order, as the name suggests, is an order which is valid for the

day on which it is entered. If the order is not matched during the day, the

order gets cancelled automatically at the end of the trading day.

GTC - A Good Till Cancelled (GTC) order is an order that remains in the

system until it is cancelled by the Trading Member. It will therefore be able to

span trading days if it does not get matched. The maximum number of days a

GTC order can remain in the system is notified by the Exchange from time to

time.

GTD - A Good Till Days/Date (GTD) order allows the Trading Member to

specify the days/date up to which the order should stay in the system. At the

end of this period the order will get flushed from the system. Each day/date

counted is a calendar day and inclusive of holidays. The days/date counted

are inclusive of the day/date on which the order is placed. The maximum

number of days a GTD order can remain in the system is notified by the

Exchange from time to time.

IOC - An Immediate or Cancel (IOC) order allows a Trading Member to buy or

sell a security as soon as the order is released into the market, failing which

54
the order will be removed from the market. Partial match is possible for the

order, and the unmatched portion of the order is cancelled immediately.

Price Conditions

Limit Price/Order – An order that allows the price to be specified while

entering the order into the system.

Market Price/Order – An order to buy or sell securities at the best price

obtainable at the time of entering the order.

Stop Loss (SL) Price/Order – The one that allows the Trading Member to

place an order which gets activated only when the market price of the

relevant security reaches or crosses a threshold price. Until then the order

does not enter the market.

A sell order in the Stop Loss book gets triggered when the last traded price in

the normal market reaches or falls below the trigger price of the order. A buy

order in the Stop Loss book gets triggered when the last traded price in the

normal market reaches or exceeds the trigger price of the order.

E.g. -If for stop loss buy order, the trigger is 93.00, the limit price is 95.00 and

the market (last traded) price is 90.00, then this order is released into the

system once the market price reaches or exceeds 93.00. This order is added

to the regular lot book with time of triggering as the time stamp, as a limit

order of 95.00

55
Quantity Conditions

Disclosed Quantity (DQ)- An order with a DQ condition allows the Trading

Member to disclose only a part of the order quantity to the market. For

example, an order of 1000 with a disclosed quantity condition of 200 will

mean that 200 is displayed to the market at a time. After this is traded,

another 200 is automatically released and so on till the full order is executed.

The Exchange may set a minimum disclosed quantity criteria from time to

time.

MF - Minimum Fill (MF) orders allow the Trading Member to specify the

minimum quantity by which an order should be filled. For example, an order of

1000 units with minimum fill 200 will require that each trade be for at least 200

units. In other words there will be a maximum of 5 trades of 200 each or a

single trade of 1000. The Exchange may lay down norms of MF from time to

time.

AON - All or None orders allow a Trading Member to impose the condition

that only the full order should be matched against. This may be by way of

multiple trades. If the full order is not matched it will stay in the books till

matched or cancelled.

Trader Workstation

56
The trader workstation is the terminal from which the member accesses the

trading system. Each trader has a unique identification by way of Trading

Member ID and User ID through which he is able to log on to the system for

trading or inquiry purposes. A member can have several user IDs allotted to

him by which he can have more than one employee using the system

concurrently.

The Exchange may also allow a Trading Member to set up a network of

dealers in different cities all of whom are provided a connection to the NSE

central computer. A Trading Member can define a hierarchy of users of the

system with the Corporate Manager at the top followed by the Branch

Manager and Dealers.

The Trader Workstation screen of the Trading Member is divided into several

major windows:

 Title Bar

 Tool Bar

 Ticker Window

 Market Watch Window

 On line Index and Index Inquiry

 Inquiry Window

 Snap Quote

 Order/Trade Window

57
  Systems Message Window

 Supplementary Menu

Title Bar

The title bar displays the current time, Trading system name and date.

Tool Bar

A window with different icons which provides quick access to various

functions such as Market By Order, Market By Price, Market Movement,

Market Inquiry, Auction Inquiry, Snap Quote, Market Watch, Buy order entry,

Sell order entry, Order Modification, Order Cancellation, Outstanding Orders,

Order Status, Activity Log, Previous Trades, Net Position, Online Backup,

Supplementary Menu, Security List and Help. All these functions are also

available on the keyboard.

Ticker Window

The ticker displays information about a trade as and when it takes place. The

user has the option to set-up the securities which appear in the ticker.

Market Watch Window

58
The Market Watch window is the main area of focus for a Trading Member.

The purpose of Market Watch is to view market information of pre-selected

securities that are of interest to the Trading Member.

To monitor various securities, the trading member can set them up by typing

the Security Descriptor consisting of a Symbol field and a Series field.

Securities can also be set up by invoking the Security List and selecting the

securities from the window. The Symbol field incorporates the Company

name and the Series field captures the segment/instrument type. A third field

indicates the market type.

For example,

Company (Symbol) : ACC

Instrument type (Series): EQ

Market Type: N

For each security in the Market Watch window, market information is

dynamically updated on a real time basis. The market information displayed is

for the current best price orders available in the regular lot book. For each

security, the corporate action indicator (e.g., Ex or cum dividend, interest,

rights etc.), the total buy order quantity for the best buy price, best sell price,

total sell order quantity for the best sell price, the Last Traded Price (LTP), the

last traded price change indicator ('+' if last traded price is better than the

59
previous last traded price and '-' if it is worse) and the no delivery indicators

are displayed. If the security is suspended, "SUSPENDED" appears in front of

the security.

On line Index and Index Inquiry

With every trade in a security participating in Index, the user has the

information on the current value of the Nifty. This value is displayed at the

extreme right hand corner of the ticker window.

Index Inquiry gives information on Close, Open, High, Low and current index

values at the time of invoking this inquiry screen.

Inquiry Window

In this window, the inquiries such as Market by Order, Market by Price,

Previous Trades, Outstanding Orders, Activity Log, Order Status and Market

Inquiry can be viewed.

Market By Order (MBO)

The purpose of Market by Order is to enable the user to view outstanding

orders in the trading books in the order of price/time priority. The information

is displayed for each order. Stop Loss orders, which are not triggered will not

60
be displayed on the window. Buy orders are displayed on the left side of the

window and Sell orders on the right side. The orders are presented in a

price/time priority with the "best priced" order at the top.

Market by Price (MBP)

The purpose of Market By Price is to enable the Trading Member to view

aggregate orders waiting in the book at given prices.

Previous Trades (PT)

The purpose of this window is to provide information to users for their own

trade.

Outstanding Orders (OO)

The purpose of Outstanding Orders is to enable a Trading Member to view

his/her own outstanding buy or sell orders for a security. An outstanding order

will be an order that was entered by the user, but is not yet completely traded

or cancelled.

Activity Log (AL)

The Activity Log shows the activities that have been performed on any order

of the Trading Member such as whether the order has been traded against

fully or partially, it has been modified or has been cancelled. It displays

61
information only of those orders in which some activity has taken place. It

does not display orders, which have entered the books but have not been

matched (fully or partially) or modified or cancelled.

Order Status (OS)

Order Status enables the user to look into the status of a specific order.

Current status of the order and other order details are displayed. In case the

order is traded, the trade details are also displayed.

Market Inquiry (MI)

Market Inquiry enables the user to view the market statistics like Open, High,

Low, Previous close, Last traded price change indicator, Last traded quantity,

date and time etc. A user may find inquiry screens like Market Movement,

Most Active Securities and Net Position useful. These are available in the

supplementary menu.

Market Movement (MM)

The Market Movement screen provides information to the user regarding the

movement of a security for the current day. It gives details of the movement of

the scrip for a time interval. The details include total buy and sell order

quantity value, Open, High, Low, Last traded price etc.

Most Active Securities

62
This screen gives a list of the securities with the highest traded value during

the day and the quantity traded for each of them.

Net Position

This functionality enables the user to interactively view his net position for all

securities in which he has traded.

Snap Quote

The Snap Quote feature allows a Trading Member to get instantaneous

market information on any desired security. This is normally used for

securities that are not already on display in the Market Watch window. The

information presented is the same as that of Market Watch window.

Order/Trade Window

Order entry mechanisms enable the Trading Member to place orders in the

market. The system will request re-confirmation of an order so that the user is

cautioned before the order is finally released into the market. Orders once

placed on the system can be modified or cancelled till they are matched.

Once orders are matched they cannot be modified or cancelled.

There is a facility to generate online order/trade confirmation slips as soon as

an order is placed or a trading is done. The order confirmation slip contains

among other things, order no., security name, price, quantity, order conditions

like disclosed or minimum fill quantity etc. The trade confirmation slip contains

63
the order and trade no., date, trade time, price and quantity traded, amount

etc. Orders and trades are identified and linked by unique numbers so that

the investor can check his order and trade details.

Systems Message Window

This window is used to view messages from the Exchange to all specific

Trading Members.

Supplementary Menu

Some of the supplementary features in the NEAT system are:

 On line back up

An on line back up facility is provided which the user can invoke to take a

back up of all order and trade related information. There is an option to

copy the file to any drive of the computer or on a floppy diskette. Trading

members find this convenient in their back office work.

 Off Line Order Entry

A member is able to make an order entry in the batch mode.

Computer to Computer Link (CTCL) facility

NSE offers a facility to its trading members by which members can use their

own trading front-end software in order to trade on the NSE trading system.

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This facility called Computer-to-Computer Link (CTCL) facility is available only

to trading members of NSE.

About the CTCL facility

Trading Members can use their own software running on any suitable

hardware/software platform of their choice. This software would be a

replacement of the NEAT front-end software that is currently used by

members to trade on the NSE trading system. Members can use software

customized to meet their specialized needs like provision of on-line trade

analysis, risk management tools, integration of back-office operations etc. The

dealers of the member may trade using the software remotely through the

member's own private network, subject to approvals from Department of

Telecommunication etc. as may be required in this regard.

CTCL software

Members can procure the CTCL software either from software vendors who

are empanelled with NSE or they may develop the software through their own

in-house development team or may procure the software from other non-

empanelled vendors.

The Exchange has issued circular no.NSE/CMO/0235/2005 dated Aug 24,

2005 (Download No.NSE/CMTR/6552) regarding detailing requirement and

procedures to be complied with by members desirous of using the CTCL

facility.

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COMPARATIVE ANALYSIS

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There are many companies who are interested in On-line Trading but there

are some major companies in On-line Trading. So I want to discuss here

about the brokerage charges of many companies.

 Karvy Stock Broking Ltd.

 India Bulls

 ICICI Direct

 Kotak Securities

 Sharekhan

Karvy Stock Broking Ltd.

Speed Trade
•Account Opening: Rs 1000 (Refundable against brokerage in Month +
1)
•Demat 1st Yr: Incl. in Account Opening
•Initial Margin: NIL
•Min Margin Retainable: NIL
•Brokerage:
Trading 0.10% each side + All Taxes
Delivery 0.50% each side + All Taxes
(Negotiable based on volume)

DATA ANALYSIS
According to age group, peoples are aware of on-line share trading?

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15-25
25-35
35-45
45-above

Are you heard about Karvy Stock Broking Ltd.

Yes

No

Where the people of the age group are 15-25 years invest at present?

Banks
Stock market
Mutual funds
Insurance
Bonds
IPO

Where would people of the age group 15-25 years invest in future?

Primary market
Secondary market
Mutual funds
Insurance
Fixed deposits
Real estate
Capital gain

Where people of the age group 25-35 years invest at present?

Banks
Post office
Stock market
Real estate
Insurance
Bonds
IPO

Future investment of the people of age group 25-35 years?

Primary market
Secondary market

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Mutual funds
Insurance
Fixed deposits
Real estate
Capital gain

Where the people invest in the age group 35-45 years at present?

Banks
Post office
Stock market
Real estate
Insurance
Bonds
Mutual funds

Future investment destination in the age group 45-above years?

Primary market
Insurance
Fixed deposits
Real estate

Distribution on the basis of Occupation

Private sector
Govt. sector
Public sector
Businessman
Retired person

Distribution on the basis of income

5000-10000
10000-15000
15000-20000
20000-25000
25000-above

Distribution on the basis of people’s preference

Banks
Post office

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Stock market
Mutual funds
Real estate
Capital gain
Insurance
Bonds
IPO

Distribution on the basis of influences on investment decision

Self
Spouse
Parents
Friends
Siblings
Children

Distribution on the basis of reasons for investment

Get more money

Distribution on the basis of source of awareness

Satisfaction level on the following parameters

ATTRIBUTES AGGREGATE OF RATINGS (10)

Service space 7

Attitude of the staff 9

Dissemination of the information 8

Promptness in query handling 8

INTERPRETATION

Almost all of the people who are associated with Karvy Stock Broking Ltd.
Termed it as “very good” on the above parameters.

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Aggregate of the rating on the following attributes with respect to quality
services

ATTRIBUTES AGGREGATE OF THE RATING

Processing time 8
Processing fee 8
Paper work involved in the operations 7
Working days 8
Value added service 9

INTERPRETATION

People think of Karvy Stock Broking Ltd. As “very Good” on the above
parameters of quality services.

LIMITATIONS

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 Financial constructions limited my options in carrying out of the project.

 Most of the people were reluctant to divulge the needed information

because they thought the questions asked were very personal.

 As the survey was restricted to only Lucknow findings might not hold

true for other cities.

 As the sample size was 50, it is possible that the information collected

do not give the generic view of the Lucknowites.

 There may be some biased responses, hence there may be some

error samples.

RESEARCH FINDINGS

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With the help of my research I have found some tips at the organization.

 People belonging to the age group 15-25 years invest mostly in banks

and in future most of their investment will go in insurance sector.

 Banks also emerged as the favorite investment option for the people of

age group 25-35 years but in future almost 31% people will invest in

insurance.

 Almost 40% people have chosen primary market for future investment.

 Almost 60% people who are above 45-55 years invest in banks and in

future they will be investing in fixed deposits.

 56% people take their own decision while making investment.

 Only 26% people take the help of consultancy firms for investment.

 Almost 45% people are aware of De-Mat account.

 Almost 30% people are Associated with Karvy.

 Almost 40% people choose “safety of money even if the return rate is

low”. 39% people have chosen “tax relief” as the reason for

investment.

 People who earn more than Rs. 25000 and are working in public sector

unit invest more in stock market.

 Almost 49% people who earn more than Rs. 25000 will invest in real

estate. Primary market also emerged as a major investment option of

this class.

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 Very few people apart from them who generally invest in capital market

are keen to invest in this sector.

 Most of the people who seeks consultancy from karvy have termed

very good on all accounts.

 Risk factor involve in the stock market deters people from investment

in this sector.

RECOMMENDATION

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 The company needs to take steps to make people aware about the

capital markets and it’s functioning.

 As people have many misconceptions about the various investments

options, the organization should go for heavy advertising. It should

advertise in print media as well in electronic media.

 The awareness camps should be held more frequently.

 Real estate is one area where the organization should step in as it is

one of the sectors which is poised to see many developments in the

coming years.

 Banks are still the most favorite investment option for the people. But

the current fall in the interest rates will have an effect on the prevailing

scenario. It is high time that company comes ahead and cash on the

situation, which is poised to change.

 The company should hold live presentation to allay the people’s fear of

risk factors involve in the stock market.

 The company should arrange periodical meeting with the sub-brokers

and de-mat account holders. This will induce them to work as catalyst

between the company and potential investors.

CONCLUSION

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Karvy consultants limited is playing a constructive, unified and defining role in

the Indian financial market. With a humble start in 1982, it initially provided

only auditing and taxation services but later on it forayed into the capital

market as well. Today it has established well in the market and enjoys number

one position.

But my survey reveals the fact that baring those who have already a de-mat

account in the organization few are aware of company’s function. Though

42% people are aware of karvy Stock broking Lt. only 26% are taking service

from it. The company needs it formulate strategy to invade the hidden but

potential investors market.

ANNEXURE

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Questionnaire

Dear Respondent,

I am Pravendra Kumar Srivastava student of Asia-Pacific Institute Of

Management, Sarita Vihar, New Delhi. I am doing this research to know that

how many people are aware about the financial institution and their services.

Are you aware about the financial institution?

Yes No

Do you want to invest your money in any financial institution?

BIBLIOGRAPHY

URL’s

www.karvy.com

www.nseindia.com

www.google.com

www.moneycontrol.com

Newspaper and Magazines

Economic times News Paper

Business World

Business India

NSE’s Certification In Financial Markets (NCFM) book

Summer kit provided by Karvy Stock Broking Ltd.

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Karvy Finapolisis

Karvy Bazaar Baatein

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