A Project Study Report On Training Undertaken at KARVY STOCK BROKING T!

"

#A Co$parati%e Study &et'een (er%ice( pro%ided to Kar%y )ranc*i(ee( and ot*er )ranc*i(ee(+ Su&$itted in Partia, )u,-i,$ent -or t*e A'ard o- !egree o.a(ter o- Bu(ine(( Ad$ini(tration

Su&$itted By/ Vijaya .i(*ra .BA 0rd Se$"

Su&$itted To/ T*e !irector 12CRC Bu(ine(( Sc*oo,

Pre-ace

In the present scenario, any study will not be completed without knowing practical concepts in marketplace. The studies with a practical view are a gold coin. The MBA curriculum has been designed to provide practical exposure to the future manager. The pro ect study is necessary for the fulfilment of MBA curriculum, it provide an opportunity to the researcher to understand industry with special emphasis on the development of skills in analysis, interpretation of practical problem through application of management. Myself as a student of MBA is very fortunate to have done my report on professionally advanced topic 3A co$parati%e (tudy &et'een (er%ice( pro%ided to Kar%y )ranc*i(ee( and ot*er )ranc*i(ee(" The main ob ective of this pro ect report is to upgrade oneself from theoretical concepts to practical environment. !o doubt every situation is uni"ue but a set of theoretical tool of knowledge, itself based on empirical foundation, can help in developing the mechanism for handling such situation. Another ob ective is to learn how business expands through franchisees and how are they served. The pro ect is an act of increasing one#s knowledge and skills so that he$she can perform his$her ob in a better manner. In my context, this pro ect work has helped us not only in preparing my pro ect but also in understanding the organisational aspect in a detailed manner. This pro ect work is indeed a life time experience to me.

Ackno',edge$ent

I express my sincere thanks to my pro ect guide4 .r Yugdeep Sing*4 .anager, %arvy &ortune for guiding me right from the inception till the successful completion of the pro ect. I sincerely acknowledge him for extending his valuable guidance, support for literature, critical reviews of pro ect and the report and above all the moral support he had provided to me with all stages of this pro ect. Besides him I would also like to express my thanks to all my faculty members who always guided me towards the completion of pro ect and made it a successful one.

'i aya Mishra

25ecuti%e Su$$ary

The main ob ective of this pro ect is to understand how business can grow by providing its franchisee. This helps organisation to save its costs which would be otherwise incurred on setting another branch. &ranchising is an arrangement whereby a franchiser grants franchisee, the right to sell products in exchange for some type of consideration. &ranchising offers several benefits to both franchiser and franchisee. It enables a franchisee to start its business with limited capital and use the business experience of others. If a business problem arises, the franchisee can obtain guidance or advice from the franchiser at a little or no cost. &ranchised outlets are generally more successful than independently owned business units. The franchiser gains fast and selective product distribution through franchise arrangements without incurring the high cost of constructing and operating its outlets. The franchiser benefits from the fact that the franchisee being the sole proprietor in most of the cases is likely to be highly motivated to succeed. (uccess of the franchisee means more sales which translate in to more royalties for franchiser. In the pro ect undertaken, proper research is done on services provided by %A)'* to its franchisees and same by other ma or players in the market and how well are they satisfied. The data for the same is ma orly primary and secondary to some extent. The research is based on various factors such as security deposit, back office cost and facilities given by the franchisers. This pro ect enabled us to carefully analyse the basis on which the franchisee is taken and provided us with an opportunity to interact with many franchisees of ma or broking firms.

+ontents

,- Introduction to the Industry

,.,,..Introduction to the &inancial Market &inancial Intermediation

.- Introduction to the /rgani0ation

..,- About %arvy (tock Broking 1imited ...- Board /f 2irectors ..3- Mission, 'ision and 4uality 5olicy of the +ompany ..6- 7ourney of %arvy ..8- 2ifferent 'erticals of /rgani0ation ..9- /rgani0ational (tructure ..:- Achievements ..;- %arvy &ortune ..<- Modes to become partner with %arvy ..<.,- &ranchisee ..<..- )emisser ..,=- /ther Ma or 5layers in Market

3- )esearch Methodology
3.,3..3.33.63.83.93.:Title of the (tudy 2uration of the 5ro ect /b ective of the (tudy Type of )esearch (ample si0e and method of selecting sample (cope of (tudy 1imitations of (tudy

6- &acts and &indings 8- Analysis and Interpretation 9- (>/T

:- +onclusion ;- )ecommendation and (uggestions <- Appendix ,=- Bibliography

Introduction to t*e Indu(try

The Indian financial services industry is in a process of rapid transformation. )eforms are continuing as part of the overall structural reforms aimed at improving the productivity and efficiency of the economy. The role of an integrated financial infrastructure is to stimulate and sustain economic growth. The Indian economy is estimated to have grown by :.6 per cent in .==<?,=. According to the latest +entral (tatistical /rganisation @+(/- data, financial services, banking, insurance and real estate sectors rose by <.: per cent in .==<?,=. /verall, the A(B.; billion Indian financial sector has grown at around ,8 percent and has displayed stability for the last several years, even when other markets in the Asian region were facing a crisis, according to Ministry of Cxternal Affairs, Dovernment of India. This stability was ensured through the resilience that has been built into the system over time. The financial sector has kept pace with the growing needs of corporate and other borrowers. Banks, capital market participants and insurers have developed a wide range of products and services to suit varied customer re"uirements. The )eserve Bank of India @)BI- has successfully introduced a regime where interest rates are more in line with market forces.

India#s financial services sector will en oy generally strong growth during coming years, driven by rising personal incomes, corporate restructuring, financial sector liberali0ation and the growth of a more consumer?oriented, credit?oriented culture. This should lead to increasing demand for financial products, including consumer loans @especially for cars and homes-, as well as for insurance and pension products.

According to data from Bloomberg, IndiaEs market cap as a percentage of world market cap was ..; per cent as on 2ecember 3,, .==<. In .==<, there were ., I5/s that raised A(B 6.,; billion as compared to 39 I5/s in .==; that raised A(B 3.9. billion. &urther, according to I+I+I (ecurities, Indian companies are likely to raise up to A(B 6..63 billion from the primary market over the next three years.

According to Madhabi 5uri?Buch, Managing 2irector and +C/, I+I+I (ecuritiesE nearly A(B .= billion will be raised from the initial public offer @I5/- market this fiscal @.=,=?,,-, of which around A(B ;.6< billion would be from the public sector and an e"ual amount from private companies. Moreover, on the back of an increase in the participation of agriculture and other commodities, the .3 commodity exchanges posted 8= per cent year?on?year growth in turnover in the April? &ebruary period of .==<?,=, to touch A(B ,.83 trillion, according to the commodity markets regulator, &orward Markets +ommission @&M+-.

The average assets under management of the mutual fund industry stood at A(B ,:=.69 billion for the month of May .=,=, as compared to A(B ,38.8; billion in May .==<, according to the data released by Association of Mutual &unds in India @AM&I-.

)INANCIA .ARK2TS A &inancial Market can be defined as the market in which financial assets are created or transferred. As against a real transaction that involves exchange of money for real goods or services, a financial transaction involves creation or transfer of a financial asset. &inancial Assets or &inancial Instruments represents a claim to the payment of a sum of money sometime in the future and $or periodic payment in the form of interest or dividend. .oney .arket? The money market ifs a wholesale debt market for low?risk, highly?li"uid, short? term instrument. &unds are available in this market for periods ranging from a single day up to a year. This market is dominated mostly by government, banks and financial institutions.

Capita, .arket ? The capital market is designed to finance the long?term investments. The transactions taking place in this market will be for periods over a year. )ore5 .arket ? The &orex market deals with the multicurrency re"uirements, which are met by the exchange of currencies. 2epending on the exchange rate that is applicable, the transfer of funds takes place in this market. This is one of the most developed and integrated market across the globe. Credit .arket? +redit market is a place where banks, &Is and !B&+s purvey short, medium and long?term loans to corporate and individuals.

Con(tituent( o- a )inancia, Sy(te$

)INANCIA INT2R.2!IATION

Faving designed the instrument, the issuer should then ensure that these financial assets reach the ultimate investor in order to garner the re"uisite amount. >hen the borrower of funds approaches the financial market to raise funds, mere issue of securities will not suffice. Ade"uate information of the issue, issuer and the security should be passed on to take place. There should be a proper channel within the financial system to ensure such transfer. To serve this purpose, )inancia, inter$ediarie( came into existence. &inancial intermediation in the organi0ed sector is conducted by a widerange of institutions functioning under the overall surveillance of the )eserve Bank of India. In the initial stages, the role of the intermediary was mostly related to ensure transfer of funds from the lender to the borrower. This service was offered by banks, &Is, brokers, and dealers. Fowever, as the financial system widened along with the developments taking place in the financial markets, the scope of its operations also

widened. (ome of the important intermediaries operating ink the financial markets includeG investment bankers, underwriters, stock exchanges, registrars, depositories, custodians, portfolio managers, mutual funds, financial advertisers financial consultants, primary dealers, satellite dealers, self regulatory organi0ations, etc. Though the markets are different, there may be a few intermediaries offering their services in move than one market e.g. underwriter. Fowever, the services offered by them vary from one market to another.

Inter$ediary (tock Cxchange

.arket +apital Market

Ro,e (econdary Market to securities

Investment Bankers

+apital Market, +redit Market

+orporate advisory services, Issue of securities

Anderwriters

+apital Market, Money Market

(ubscribe to unsubscribed portion of securities

)egistrars, 2epositories, +ustodians

+apital Market

Issue securities to the investors on behalf of the company and handle share transfer activity

5rimary 2ealers (atellite 2ealers &orex 2ealers

Money Market

Market making in government securities

&orex Market

Cnsure exchange ink currencies

Introduction to t*e Organi(ation

Kar%y Stock Broking i$ited

%A)'* is a premier integrated financial services provider and ranked among the top five in the country in all its business segments. It services over ,9 million individual investors in various capacities and provides investor services to over 3== corporate. It is a member of all threeH? I !ational (tock Cxchange @!(CI Bombay (tock Cxchange @B(CI Fyderabad (tock Cxchange @F(C%arvy utili0ed its experience and superlative expertise to capitali0e on its strengths and better its service, innovate and provide new ones. It diversified in the process and thus evolved as India#s premier integrated financial service enterprise. %arvy has been a customer centric company since its inception. It 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. %A)'* covers the entire spectrum of financial services such as (tock broking, 2epository 5articipants, 2istribution of financial products ? mutual funds,bonds, fixed deposit, e"uities, Insurance Broking, +ommodities Broking, 5ersonal &inance Advisory (ervices, Merchant Banking J +orporate &inance, placement of e"uity, I5/s, among others. %arvy has a professional management team and ranks among the best in technology, operations and research of various industrial segments.

BACKGROUN!
The flagship company, %arvy +onsultants 1imited was found with the vision and enterprise of a group of practicing +hartered Accountants on a modest scale in ,<;, in Fyderabad, where it now has ,3 branches.The name %A)'* is actually the Initials of their names.

K 6 .r" Kutu$& Rao A6 .r Ajay Ku$ar R6 .r" Ra$a('a$y V6.r" Venkat Naidu Y6.r" Yugand*ar

It initiated with ust one activity and later carved roads into fields of registry and share accounting as well. &rom then there was no stopping at all. A decade of commitment, professional integrity and vision helped %arvy achieve a leadership position in its field. It is known to handle the largest number of issues ever in the history of the Indian stock market in a particular year. Thereafter, %arvy made inroads into a host of capital market services, corporate and retail which proved to be a sound business synergy. Today %arvy has access to millions of Indian shareholders, besides companies, banks, financial institutions and regulatory agencies. /ver the past one and half decades, %arvy has involved as a veritable link between industry, finance and people. An I(/ <==. company, %arvy#s commitment to "uality and retail reach has made it an integrated financial services company. A (CBI category , registrar, so far %arvy has handled

over 9:8 issues as )egistrars to public issues, processed over 8. million applications and is servicing over ,9 million investors from various locations spread over .=8 cities .

Board of Directors

.r" C Part*a(arat*y, a leader in the financial services industry in India is responsible for building %arvy as one of IndiaEs truly integrated &inancial (ervices 5roviderG he is a fellow member of the Institute of +ompany (ecretaries of India, a &ellow Member of the Institute of +hartered Accountants of India and a graduate in law. As +hairman, he oversees the groupEs operations and renders vision and business direction. Fis passion and vision for achieving leadership in the business made %A)'* a leading financial intermediary ranking them as number one in the registrar, (hare Transfer and I5/ 2istribution businesses. Fe also holds directorship in %arvy (tock Broking 1imited, %arvy Investor (ervices 1imited, %arvy +omputershare 5rivate 1imited, %arvy +omtrade 1imited, %arvy Insurance Broking 5vt 1td "

.r" . Yugand*ar, Managing 2irector, founder member of %arvy +onsultants 1imited, has varied experience in the field of financial services spanning over .= years. Fe is a &ellow Member of the Institute of +hartered Accountants of India and was involved in the statutory and branch audit of banks for .9 years.

.r" . S Ra$akri(*na, 2irector, founder member of %arvy +onsultants 1imited is orchestrator of technology initiatives such as the call center in the service of the customer. Mr. )amakrishna is a member of the Fyderabad (tock Cxchange and is the director of %arvy (tock Broking 1imited, %arvy Investor (ervices 1imited, %arvy +omputershare 5rivate 1imited, %arvy +omtrade 1imited, %arvy Insurance Broking 5vt 1td. Fe has helped %arvy diversify into the field of medical transcription leveraging on the companyEs core competency of transaction processing. Fe has more than .= years of experience in the financial services arena.

.r" Pra(ad V Pot,uri, 2irector, is an entrepreneur of repute in the IT professional services arena. In 7une ,<<9, he founded K5roconK building the organi0ation into one of the fastest growing IT services players in the A( with ..8 employees and revenues of B..m in .: months. Fe successfully merged the company with )+M for B3.m in !ovember ,<<;. In .===, he founded E Albion /rion +ompanyE, a roll up in IT services sector in the A(.

Kar%y7( .i((ion/
/ur mission is to be a leading and preferred service provider to our customers, and we aim to achieve this leadership position by building an innovative, enterprising, and technology driven organi0ation which will set the highest standards of service and business ethics L.

Vi(ion o- Kar%y/
To achieve J sustain market leadership, %arvy shall aim for complete customer satisfaction, by combining its human and technological resources, to provide world class "uality services. In the process %arvy shall strive to meet and exceed customerEs satisfaction and set industry standards.

8UA ITY PO ICY/

To achieve and retain leadership, %arvy aims for complete customer satisfaction, by combining its human and technological resources, to provide superior "uality financial services. In the process, %arvy strives to exceed +ustomerEs expectations.

A( per t*e 8ua,ity Po,icy4 Kar%y 'i,,/

Build in?house processes that will ensure transparent and harmonious relationships with its clients and investors to provide high "uality of services. Cstablish a partner relationship with its investor service agents and vendors that will help it in keeping up to its commitments to the customers. 5rovide high "uality of work life for all its employees and e"uip them with ade"uate knowledge J skills so as to respond to customerEs needs.

+ontinue to uphold the values of honesty J integrity and strive to establish unparalleled standards in business ethics. Ase state?of?the art information technology in developing new and innovative financial products and services to meet the changing needs of investors and clients. (trive to be a reliable source of value?added financial products, services and constantly guide the individuals and institutions in making a udicious choice of same. (trive to keep all stake?holders @shareholders, clients, investors, employees, suppliers and regulatory authorities- proud and satisfied.

Ac*ie%e$ent(/
Among the top 8 stock brokers in India @6M of !(C volumesIndiaEs !o. , )egistrar J (ecurities Transfer Agents Among the top 3 2epository 5articipants 1argest !etwork of Branches J Business Associates Among top ,= Investment bankers 1argest 2istributor of &inancial 5roducts Ad udged as one of the top 8= IT uses in India by MI( Asia &ully &ledged IT driven operations

KARVY .I 2STON2S
%arvy has travelled a success route over the past .= years and positioned itself as an emerging financial service giant in which embeds the confidence and support of enviable patrons across the financial world. 5atrons are also of diversified fields which includes over ,9 million individual investors in various capacities and 3== corporate comprising the best out of the whole lot .*ears of experience of holistic financial services and expertise in this industry has helped it gain the status it en oys and cherishes today.

1ourney o- Kar%y/ Succe(( Year a-ter Year

Year
9:;:69:<=

Addition
%arvy and +ompany

9:<969:<>

%arvy +onsultants 1td

9:<?69:<@

&oray into capital markets as registrars and transfer agents. &irst branch at Mumbai

9:<;69:<<

9:<<69:<:

(tock broking

9::=

Cntry into retail stock broking

9::>

(et up investor service centers

9::0

&inancial 5roducts 2istribution

9::A

Cntry into Mutual &und (ervices

9::?

+orporate &inance and Investment banking

9::;

&irst )egistrar in the country to be awarded I(/ <==.

9:::

IT enabled service ? B5/

>===

C N Business www.karvy.com

>==9

Insurance and 1aunch of retail arm %arvy the &inapolis N *our 5ersonal &inance Advisor 1aunch of 5+D

>==>

>==0

+ommencement of (econdary 2ebt and >2M trading

>==A

7' with +omputer share 1imited , Australia 1aunch of %arvy Dlobal (ervice %arvy +omtrade %arvy Insurance Broking 5vt. 1td.

>==?

>==@

%arvy )ealty J (ervices @India- 1imited N %)(1

>==;

%arvy &ortune , &unding by I+I+I 'entures 1td., Barings Asia %arvy 5rivate >ealth

>==<

>==: %arvy 2ata Management (ervices 1td %arvy &inancial (ervices 1td

.i,e(tone( to &e ac*ie%ed in -uture/

To set up its own Asset Management +ompany

To set up its own Bank by .=,.

Kar%y Group o- Co$panie(

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

9B Kar%y Con(u,tant( i$ited/

This is the flagship company of %arvy Droup and it controls the organi0ational affairs, channels of progress, work affairs and pioneering business policies. This was the first business the %A)'* group ventured into, but now they have transferred it into a oint venture with computer share limited of Australia, the world#s largest registrar. This company services around 9 lakh customer accounts in a spread of .8= cities$towns in India.

>B Kar%y Stock Broking i$ited

It is undisputable fact that the stock market is unpredictable and volatile, but despite this %(B1 en oys a high success rate as a wealth management option. %arvy (tock Broking 1imited offers services that are much beyond serving ust as a medium for buying and selling stocks and shares. Instead it provides multi dimensional and multi focused services. It offers trading facilities for !ational (tock Cxchange, Bombay (tock Cxchange and Fyderabad (tock Cxchange and tries to make trading safe to maximum possible extent. It also offers special portfolio analysis packages that provide daily technical advice on scrips for successful portfolio management. It provides customi0ed advisory services to help the client make right financial moves which specifically suits their portfolios.

0B Kar%y Co$puter(*are i$ited

Karvy Computershare Limited

This wing of %arvy has traversed wide spaces to tie up with the world#s largest transfer agent, the leading Australian company +omputershare 1imited. This company services more than :8 million shareholders across :=== clients and makes its presence felt in over ,. countries across 8 continents. It has also entered into a 8=?8= oint venture with %arvy. After transferring completely to this new entity it has tried to enrich the financial services industry as a whole. The worldwide network of +omputershare helps it to adapt to the international standards in addition to leveraging the best technologies from all over the world.

AB Kar%y Co$trade i$ited

%arvy +ommodities focuses on taking commodities trading to new dimensions of reliability and profitability. They have made commodities trading, an essentially age?old practice, into a

sophisticated and scientific investment option. It helps in enabling trade in all goods and products of agricultural and mineral origin that include lucrative commodities like gold and silver and popular items like oil, pulses and cotton through a well?systemati0ed trading platform.

?B Kar%y In(urance Broking i$ited/

%arvy Insurance Broking 5vt. 1td., provides both life and non?life insurance products to retail individuals, high net?worth clients and corporates. >ith the opening up of the insurance sector and entry of a large number of private players in the business, it is in a position to provide tailor made policies for different segments of customers.

@B Kar%y In%e(tor Ser%ice( i$ited/

This wing of %arvy is registered with (CBI as a category , merchant banker and is also recogni0ed as a leading merchant banker of the country. It has built its reputation by capitali0ing the opportunities as and when it comes, be it in corporate consolidations, mergers and ac"uisitions or corporate restructuring. Involvement in raising resources for corporate or government undertaking successfully over the past two decades has given it a tremendous confidence boost.

;B Kar%y !ata .anage$ent Ser%ice( i$ited/

(tarted in .==;,%arvy 2ata Management (ervices is the domestic B5/ arm of the %arvy Droup and services corporate across various industry verticals and business hori0ons. %2M(1 is emerging as a leading service provider in the areas of C?governance processing, insurance back office processing, record keeping, back office for B&(I clientele and is in pursuit to establish credentials in the areas of Telecom processing, 2ata management re"uirements of large corporate.

<B Kar%y G,o&a, Ser%ice(/

%arvy Dlobal (ervices is a knowledge services company. It provides specialist resources to extend in house analyst teams in driving clear business results. It serves investment banks, insurance providers, brokerages, hedge funds, research agencies, and life settlement providers across the Anited (tates, Middle Cast, and Curope. Their areas of focus include e"uity and industry research, commodity research, credit analytics, technology?based workflow solutions, insurance policy and portfolio valuation, and other speciali0ed services.Incorporated in .==6, The +ompany is backed by over .8 years of experience through India#s largest financial services company, the %arvy Droup. It is located in !ew *ork and have primary global delivery centre in Fyderabad, India.

:B Kar%y )inance/

%arvy &inancial (ervices 1td. is a wholly owned subsidiary of %arvy (tock Broking 1td .It was established in the year .==<.%A)'* Droup, a pioneer in financial services in India, has forayed into retail finance space with its !on Banking &inancial +orporation @!B&+- N %arvy &inancial (ervices 1td or %arvy &inance. %arvy &inance has a vision to be the O+ategory +hampionL for )etail &inance in India. %arvy &inance aims to offer a complete bou"uet of financial services products to its customers with secured and unsecured lending products @such as loans against securities, loans against property and personal$business loans-.

9=BKar%y Rea,ty India i$ited/

%arvy )ealty @India- 1imited @%)I1- is promoted by the %arvy Droup, India#s largest financial services group. The group carries forward its legacy of trust and excellence in investor and customer services delivered with passion and the highest level of "uality that align with global standards. %arvy )ealty @India- 1imited is engaged in the business of real estate and property services offeringH

Buying$ selling$ renting of properties Identifying valuable investments opportunities in the real estate sector &acilitating financial support for real estate and investments in properties )eal estate portfolio advisory services.

99BKar%y )ortune/

&rom the year .==:.%arvy (tock Broking 1imited started offering its franchisee through %arvy &ortune, a separate vertical which would handle all the matters related to franchisees. It provided opportunities for the franchisees to oin hands with the company that is ranked among top five in the country in all its business segments. %arvy &ranchisees are provided with support of highly "ualified and dedicated professionals. %arvy provides the complete backing of its research. Armed with these invaluable inputs, customers can take right investment decisions. %arvy (tock Broking 1imited has over ,=== franchisees all over India and around ,= in )a asthan.

Organi(ationa, Structure

Kar%y )ortune

%arvy (tock Broking is expanding it#s business in all over India to reach corner customers of India, %arvy has deputed Kar%y )ortune in .==:, It is carved to reach like?minded people who wish to serve the customers with utmost reliability and fervor. A Business Associate of %arvy will actively promote and market %arvy#s services and products and keeps customers updated of the forthcoming new products and schemes. %arvy is a pioneer financial services provider in India and has operations in segments such as stock, commodities and insurance broking, investment banking, mutual funds distribution and depository services. Any Individual from India can oin %arvy &amilyL as &ranchisee, )emisser or as an Independent &inancial Advisor.

C*y Kar%yD
%arvy (tock Broking 1td ranks among top 8 stock brokers in India, it ranks among top 8 2epositary 5articipants in India, with the huge net work of over 8== branches in 3:8 locations

across India and overseas at 2ubai, executes ,8=,===P trades in !(C$B(C. %arvy has a top notch research team, advisory team, cutting edge technology support team to serve it#s customers in .6$: manner. Also there are few facts as below/

Cvery 8=th Indian is serviced by %A)'* Cvery .=th trade in stock market is done through %A)'* Cvery 9th Investor in India invests through %A)'* India#s !o., )egistrar and Transfer AgentH%A)'* Cvery ,=th 2emat Account is held at %A)'*

Cay( to &eco$e Bu(ine(( Partner( 'it* Kar%y

/ne who is interested to associate with %arvy can do it in two ways. Cither he can become a -ranc*i(ee or a re$i((er. %arvy offers excellent services to its business associates in form of sharing and other facilities. In addition to it, there are various add?on services that help business associates to generate more revenue. &irstly we will discuss about associating with %arvy as a )ranc*i(ee"

)ranc*i(ee/

C*at i( -ranc*i(ingD
&ranchising is an arrangement whereby a franchiser grants franchisee, the right to sell products in exchange for some type of consideration. Their are two parties to it namely -ranc*i(ee @An individual who purchases and runs a franchise- and -ranc*i(or @from whom the franchise is purchased-

C*o can take -ranc*i(eD

Fas the capacity to invest in infrastructure. Fave ready clientele base. Fave start?up capital to invest. >ants to invest full time to business. >ants tool to service and support clients.

A((ociating 'it* Kar%y a( a -ranc*i(ee/

This concept essentially talks about appointing PARTNERS for KARVY across the nation to conduct the broking @stock and commodities- and distribution business. These franchisees would have to maintain the corporate standard infrastructure, look and feel, service delivery and other aspects and function ust like %A)'* branches

Bene-it( o- A((ociating 'it* Kar%y/

1eading (tock Broker 1eading I5/ 2istributor 1eading Mutual &unds 2istributor 1eading 2epository 5articipant (trong Brand )ecognition 2iversified 5roduct /fferings 4uality )esearch (trong (ervice (upport (trong Branch !etwork

2,igi&i,ity Criteria to &eco$e a -ranc*i(ee/

9. An individual$ company$ partnership firm with good track record J reputation in financial

services$other business$social circles with a good client base. >. (ub?broker registration in (CBI$Cxchanges through %(B1 is compulsory without which the remittance of accrued brokerage to franchisee will be kept on hold till registration is complete. 0. +apacity to invest in setting up J maintaining the infrastructure J manpower re"uired for carrying on the business as specified below at their own expense. a" /wn or leased premises with re"uisite power supply and support facilities Including 1A! duly approved by %(B1 in writingG &" Interior work, furniture and !ame Board conforming to the design, colours and (tandards approved by %(B1 c. +onnectivity and communication facilities including leased line, I(2! line, Telephone line etc duly approved by %(B1.

d" 1egally licensed operating system, database and other software including back? office software re"uired for the operations at franchisee#s premisesG e" Any other e"uipment or installations necessary for carrying on the business without interruption. A" The sub?broker$ employees of corporate$firm should hold valid !+&M certificates for +ash, &J/ and ensure that !+&M certificate holder in person has to sit on trading terminals in whose name the terminal I2 has been generated.

Bu(ine(( Partner Package o--ered &y Kar%y/

9" Product Support/ Broking through B(C @+ash J &J/-, !(C @+ash J &J/-, 25 services through !(21, +2(1.

>" Sa,e( Support/ A )elationship Manager will be assigned to you for regular )esearch advice J Market Apdates through +hat$5hone$Cmails$5ersonal meetings.

0" Bu(ine(( !e%e,op$ent/ 5roduct research, marketing J business development support on a regular basis to encourage knowledge based selling.

A" Back O--ice Support/ +entrali0ed >eb based back office support through a dedicated +ustomer (ervice Cxecutive assigned to you for routine "ueries through +hat?5hone? Cmails. All stationary items bills, letter heads will be provided by %(B1 and digital contract notes will be delivered to the remisser id as per charges applicable.

?" Setup Support/ Initial Dlow sign flex material J Initial 'isiting +ards will be provided by %(B1.

Co$$ercia, Ter$( E Condition(

)or )ranc*i(ee(/

9" Re-unda&,e !epo(it(/ Tota, INR >?=4===F6

a. I!) ,8=,===$? with %(B1 @C"uitiesb. I!) ,=====$?for commodities @additional-

>" Regi(tration C*arge(/

I!) .:8==$?

0" Re%enue S*aring/

BROK2RAG2 SGARING RATIO H28UITYB %(B1H 6=M BA(I!C(( 5A)T!C)H 9=M

A" .ini$u$ Brokerage to &e c*arged to end c,ient(/

Seg$ent Type Brokerage Rate App,ica&,e +ash (egment @B(C J !(C- Trading =.=6M on Turnover 2erivative (egment @&J/ J +ommodities- Trading =.=6M on Turnover +ash (egment @B(C J !(C- 2elivery =.6=M

?" Back O--ice Co(t/

I!) ,8== per month

)aci,itie( o--ered in t*e package/

>K$ Area/ In order to reduce competition between the franchisees of the same company, %arvy has come out with the policy that it would not give any franchisees within .km area once it has given there.

C,ient !ata&a(e/ The +ompany would provide database of those clients who are somehow dealing with %arvy but are not trading through it. This database helps franchisees to tap those clients and grow their business.

C*eIue Punc*ing )aci,ity/ The +ompany authorises its franchisees to punch the client#s che"ue and increase their trading limit hand to hand rather than going to branch office for the same.

Ser%ice( pro%ided to )ranc*i(ee(/

On,ine .utua, -und/ /ne can invest easily through the facility of online mutual fund. It is convenient way to invest in different funds with the same che"ue which is otherwise not available in offline mode. The commission structure is as followsH

Up-rontHon ,oginB Trai,H ,oya,ty Inco$eB Brokerage

/ / /

8=M 8=M 8= paisa per transactionG of this :8M will be taken by franchisee and rest by company.

On,ine IPO )aci,ity/ &ranchisees provide their clients with facility of online I5/ and the commission structure is made on the same which is earned by the franchisee. The commission is provided in two waysH

Per app,ication $oney On t*e &a(i( o- a,,ot$ent

oan again(t Securitie(/ The shares can be pledged by clients against whom they can obtain loan and can use it for any purpose besides purchasing additional shares. The franchisee gets =.8M of the loan taken.

oan again(t .utua, )und(/ Besides the above, clients can also take loan against mutual funds held in their demat account.

.argina, )unding/ This is somewhat similar to loan against securities, the only difference being that the loan taken can only be used for purchasing additional units of shares Intere(t c*arged -or t*e (a$e6 ,9M?,;M

i-e In(uranceFGenera, In(urance/ %arvy has tie?up with almost all 1I$DI companies and franchisees can sell those insurance products.

TINFPAN )C/ This is an optional facility which franchisee can avail. Thereafter franchisee is authorised to accept applications for 5A! number and TI! number which he can directly send to main office of +ompany after punching those applications. Besides he can collect T2( amount and send it to Fyderabad /ffice.

S*are o- )ranc*i(ee in TIN )C/ Pan Card6)s 8 per application 26T!S/ Upto R( 9==6 )s :.8 R( 9=969===6)s 68 A&o%e R( 9===6 )s ,98

Besides franchisee their is another way to partner with %arvy and that is by becoming its re$i((er(. (o, now we will discuss another way to associate with company.

R2.ISS2RS/ C*o i( re$i((er D

)emissers are the individuals, not on the payroll of organi0ation, but stationed organisation#s premises to trade for their own clients.

C*o can &e a Re$i((erD

2on#t want to invest in infrastructure 2on#t want to invest in startup capital >ant to invest spare time in Business Fave good existing relations

A((ociating 'it* Kar%y a( a Re$i((er/

%A)'* has started appointing )emissers at its own branches. )emissers would be individuals, not on the payroll of organi0ation, but stationed at %A)'*#s premises to trade for their own clients. The idea here is to leverage on the client base of the remisser and sharing revenue generated with him. The remisser#s benefit is that he doesn#t have to incur any additional infrastructure setup or maintenance cost.

2,igi&i,ity Criteria to enter into a Re,ation(*ip a( a Bu(ine(( A((ociate HRe$i((erB/

9. An individual$ company$ partnership firm with good track record J reputation in financial services$other business$social circles with a good client base.

>" (ub?broker registration in (CBI$Cxchanges through %(B1 is compulsory without which the remittance of accrued brokerage to remisser will be kept on hold till registration is complete.

0" The sub?broker$ employees of corporate$firm should hold valid !+&M certificates for +ash, &J/ and +ommodity segments and ensure that !+&M certificate holder in person has to sit on trading terminals in whose name the terminal I2 has been generated.

Bu(ine(( Partner Package O--ered &y KARVY

,. Product SupportH Broking through B(C @+ash J &J/-, !(C @+ash J &J/-, 25 services through !(21, +2(1.

.. Sa,e( SupportH A )elationship Manager will be assigned to you for regular )esearch advice J Market Apdates through +hat$5hone$Cmails$5ersonal meetings.

3. Bu(ine(( !e%e,op$ent/ 5roduct research, marketing J business development support on a regular basis to encourage knowledge based selling.

6. Back O--ice Support/ +entrali0ed >eb based back office support through a dedicated +ustomer (ervice Cxecutive assigned to you for routine "ueries through +hat?5hone? Cmails. All stationary items bills, letter heads will be provided by %(B1 and digital contract notes will be delivered to the remisser id as per charges applicable.

Co$$ercia, Ter$( E Condition(

Re$i((er(/

9" Re-unda&,e !epo(it(/ Tota, INR ?=4===F6 a. I!) 8=,===$? with %(B1 @C"uities-

>" Regi(tration C*arge(/ )s .:8==

0" Re%enue S*aring/

BROK2RAG2 SGARING RATIO H28UITYB %(B1H 9=M BA(I!C(( 5A)T!C)H 6=M

A" .ini$u$ Brokerage to &e c*arged to end c,ient(/

Seg$ent Type Brokerage Rate App,ica&,e +ash (egment @B(C J !(C- Trading =.=3M /n Turnover 2erivative (egment @ &J/ J +ommodities- Trading =.=3M /n Turnover +ash (egment @B(C J !(C- 2elivery =.3=M

Ser%ice( pro%ided to Re$i((er(/

On,ine .utua, -und/ /ne can invest easily through the facility of online mutual fund. It is convenient way to invest in different funds with the same che"ue which is otherwise not available in offline mode. The commission structure is as followsH

Up-rontHon ,oginB Trai,H ,oya,ty Inco$eB Brokerage

/ / /

8=M 8=M 8= paisa per transactionG of this :8M will be taken by remisser and rest by company.

On,ine IPO )aci,ity/ )emissers provide their clients with facility of online I5/ and the commission structure is made on the same which is earned by the remissers. The commission is provided in two waysH

 Per app,ication $oney On t*e &a(i( o- a,,ot$ent

oan again(t Securitie(/ The shares can be pledged by clients against whom they can obtain loan and can use it for any purpose besides purchasing additional shares. The remissers gets =.8M of the loan taken.

oan again(t .utua, )und(/ Besides the above, clients can also take loan against mutual funds held in their demat account.

.argina, )unding/ This is somewhat similar to loan against securities, the only difference being that the loan taken can only be used for purchasing additional units of shares Intere(t c*arged -or t*e (a$e6 ,9M?,;M

i-e In(uranceFGenera, In(urance/ %arvy has tie?up with almost all 1I$DI companies and remissers can sell those insurance products.

Ot*er Ter$( E Condition( -or Bu(ine(( A((ociate(/

9" Ta5e(/ (ecurities Transaction Tax and other exchange charges J taxes as applicable will be leived. >" Pay$ent Ter$(/ a. 5ayment delayed by 3 days will be charged Q ,;M for both cash J &J/ segment. Fowever any further delay, the amount will be debited to (ABB)/%C) b. The Brokerage accrued will be returned to the (ABB)/%C) on a monthly basis sub ect to receipt of audit report.

c. There will be no sharing of brokerage in proprietor$partner$directors trading account with %arvy. 0" 25c,u(i%ity/ As a Business Associate of %(B1 you are re"uired to sell all the products promoted by the company which includes I5/, M&, 5M(, etc. exclusively for %(B1. A" C*ange in (u& &rokerage/ The above rates of sub?brokerage payable to the sub broker re sub ect to modification from time to time to be mutually agreed between %(B1 and the )emissers. ?" Certi-ication(/ (ub broker and his$her employees have to clear !+&M examination +ash J 2erivatives

TINFPAN J )C

2,igi&i,ity Criteria to enter into a Re,ation(*ip a( TINFPAN )aci,itation Centre 'it* Kar%y !ata .anage$ent Ser%ice( i$ited"

,. An individual$ company$ partnership firm with good track record J reputation in financial services$other business$social circles. .. +apacity to invest in setting up J maintaining the infrastructure J manpower re"uired for carrying on the business as specified below at their own expense. a" /wn or leased premises with re"uisite power supply and support facilities including 1A! duly approved by %2M(1 in writing.

&" Interior work, furniture and !ame Board conforming to the design, colours and standards approved by %2M(1 c" +onnectivity and communication facilities including leased line, I(2! line, telephone line etc duly approved by %2M(1 d" 1egally licensed operating system, database and other software re"uired for the operations at second party#s premises. -" Any other e"uipment or installations necessary for carrying on the business without interruption.

Support gi%en &y Kar%y )ortune to (etup TINFPAN )aci,itation Centre

9. Product Support >. Back O--ice Support 0. Setup Support/ Initial Dlow sign flex material J Initial 'isiting +ards will be provided by %2M(1 as per charges applicable.

>" C*arge( !etai,(/6

A- (ecurity 2epositH )s ,=====

B- /ne time registration cost I!) .,===$? @Indian )upees Two thousand only+- Monthly )ecurring +harges for Back office and BandwidthH ? )s. 8==$? 5.M. 2- &or additional Aser I2 @/ptional- )s.8==$? per Id $per month

Re%enue o- )ranc*i(ee( t*roug* TIN )C

TI! &+ is an optional service provided to franchisees at a minimal cost and is a good source to generate constant income.TI!$5A! &+ provides the franchisee to make 5A! cards, give TI! number and the facility to collect T2( amount and punch it at their own premises@e?T2(- and send it to !(21 later. The franchisee revenue structure is as followsH Pan Card6)s 8 per application 26T!S/ Upto R( 9==6 )s :.8 R( 9=969===6)s 68 A&o%e R( 9===6 )s ,98

Ot*er .ajor P,ayer( in t*e .arket

9B BonanKa Port-o,io

Cstablished in the year ,<<6, Bonan0a developed into one of the largest financial services and broking house in India within a short span of time. Today, Bonan0a is the fastest growing financial service with 8 mega group companies under it. Bonan0a has spread its trustworthy tentacles all over the country with pan?India presence across more than ,6== outlets spread across 69= cities.

Bene-it( o- a((ociating 'it* BonanKa/

It is the most trusted retail centric broking house ranked among the top 8 broking houses in the country. It is awarded by B(C as RMa or 'olume 2river# in #=6 N R=8 , #=9 N #=: , #=: N #=; and nominated among the Top 3 for the KBest &inancial Advisor Awards E=;K in the category of !ational 2istributors ? )etail instituted by +!B+?T',;. It cover services such as C"uity and 2erivatives, +ommodities, currency derivatives, insurance, I5/ and depository services.

2)

Kotak Securitie(

%otak (ecurities is ,==M subsidiary of %otak Mahindra Bank and one of the oldest and largest stock broking firms in the Industry. It is present in 6== cities with ,,,3 offices all over the country. It has developed its own proprietary trading platform which is robust and among the best in the industry. It has more than ,8= technology professionals constantly working on upgrading and speeding up all its systems.

Bene-it( o- a((ociating 'it* Kotak (ecuritie(/

Brand, 1eadership Cdge, (trong financial background, Investment solutions and Marketing.

3)

Anand Rat*i

Anand Rat*i is a leading full service investment bank founded in ,<<6 offering a wide range of financial services and wealth management solutions to institutions, corporations, highNnet worth individuals and families. The firm has rapidly expanded its footprint to over 38= locations across

India with international presence in Fong %ong J !ew *ork. &ounded by Mr. Anand )athi and Mr. 5radeep Dupta, the group today employs over .,8== professionals throughout India and its international offices.

Bene-it( o- a((ociating 'it* Anand Rat*i/

It is a reputed brand with years of experience J trust and has ready business model withSero infrastructure cost module. It has attractive )evenue sharing..It provides with excellent Marketing J (ales (upport

4)

India In-o,ine/

The India Infoline group, comprising the holding company, India Infoline limited and its wholly? owned subsidiaries, straddle the entire financial services space with offerings ranging from e"uity research, e"uities and derivatives trading, commodities trading, portfolio management services, mutual funds, life insurance, fixed deposits, and other small savings instruments to loan products and investment banking. It was founded in ,<<8 and the company has a network of over .,== business locations @branches and sub?brokers- spread across more than 68= cities and towns

5)

Ange, Broking

Angel BrokingEs tryst with excellence in customer relations began in ,<;:. Today, Angel has emerged as one of the most respected (tock?Broking and >ealth Management +ompanies in India. >ith its uni"ue retail?focused stock trading business model, Angel is committed to providing R)eal 'alue for Money# to all its clients.

Bene-it( o- a((ociating 'it* Ange, Broking/

It has a specially designed training program to develop the necessary business knowledge. It provides with dedicated )elationship Manager for C"uity as well as >ealth Management 5roducts to guide the business and its development in the long run. It also gives branding support in terms of regular )esearch J Advisory workshops.

6) Nir$a, Bang

Incorporated by Mr.!irmal Bang, it started its e"uity broking business operations in ,<;: as a sub broker. +urrently group is engaged with various capital market operations like e"uity broking, commodity broking, arbitrage trading, investment activities, margin funding and distribution of financial products. All the group companies are held ,==M, directly or indirectly by the promoters.Today it serves over , lakh customers spread across 39= cities. It has ,;= sub brokers in )a asthan and over ,8== sub brokers all over India.

7) S*arek*an

(harekhan, the retail broking arm of ((%I group and one of the largest stock broking houses in the country has won the prestigious awaa0 consumer vote awards .==8 for the most preferred stock broking brand in India, in the investment advisors category (harekhan Bag round network includes over .8= centres across ,.3 cities in India and having around ,.==== customers and e"ual number of demat customers. The reason behind the preferences for brands were unveiled by examines the followingH Tangible features of product $service (ofter, intangible features like imagery, e"uity driving preference Tactical measures such as promotional $pricing schemes

8) Re,iance .oney

)eliance (ecurities 1imited is a )eliance +apital company and part of the )eliance Anil 2hirubhai Ambani Droup. )eliance (ecurities is a permitted user of the brand K)eliance MoneyK for promoting its various products and services.)eliance Money through its pan India presence with 9,.33 outlets, has more than 3.8 million customers.

Bene-it( o- a((ociating 'it* Re,iance .oney/

As a sub?broker or franchisee one benefits from the goodwill, recognition, business name and reputation.*ou get access to number of new products as well as change charge structure, which will help you to retain clients and thereby providing an opportunity to make more money. After association with )eliance Money as a sub broker or a franchisee we provide timely co branding and marketing collaterals on basis of performance.

:B Re,igare

)eligare Cnterprises 1imited @)C1-, is one of the leading integrated financial services groups of India.)C1#s businesses are broadly clubbed across three key verticals, the )etail, Institutional and >ealth spectrums, catering to a diverse and wide base of clients. )C1 offers a multitude of investment options and a diverse bou"uet of financial services and has a pan India reach in more than ,88= locations across more than 69= cities and towns.

9=B

Unicon In%e(t$ent(

A!I+/! is a financial services company which has emerged as a one?stop investment solutions provider. It was founded in .==6 by two visionary and hard working entrepreneurs, Mr. Da endra !agpal and Mr. )am M. Dupta, who possess expertise in the field of &inance. The company is head"uartered in !ew 2elhi, and has its corporate office in Mumbai with regional offices in %olkata, +hennai, Fyderabad and !oida. A!I+/! is a professionally managed company led by a team with outstanding managerial acumen and cumulative experience of more than 6== man years in the financial markets The +ompany is supported by more than 68== Aniconians and has a team of over <== business offices in .38 cities across India.

Re(earc* .et*odo,ogy

)esearch is a common language refers to a search of knowledge. )esearch is scientific J systematic search for pertinent information on a specific topic, in fact research is an art of scientific investigation. )esearch Methodology is a scientific way to solve research problem. It may be understood as a science of studying how research is don#t scientifically. In it we study various steps that are generally adopted by researchers in studying their research problem. It is necessary for researchers to know not only know research method techni"ues but also technology. The scope of )esearch Methodology is wider than that of research methods. The research problem consists of series of closely related activities. At times, the first step determines the native of the last step to be undertaken. >hy a research has been defined, what data has been collected and what a particular methods have been adopted and a host of similar other "uestions are usually answered when we talk of research methodology concerning a research problem or study.

R2S2ARCG !2SIGN A research design is defined, as the specification of methods and procedures for ac"uiring the Information needed. It is a plant or organi0ing framework for doing the study and collecting the data. 2esigning a research plan re"uires decisions all the data sources, research approaches, )esearch instruments, sampling plan and contact methods.

Tit,e o- t*e Study/

A comparative study between services provided to %arvy &ranchisees and other &ranchisees.

!uration o- t*e Project/

The duration of the pro ect was 68 days from ,: th 7une .=,= to ,st August..=,=

O&jecti%e o- t*e Study/

To learn the basis on which the franchisee is given To learn how company saves its fixed costs by offering franchisees. To explore franchisees of different companies in the +ity. To know franchisee plans of different companies. To learn about various financial products To interact with number of franchisees and know what problems they face in services provided to them. To know the strengths of other company#s franchisee plans To suggest possible suggestions to %arvy

Type o- Re(earc*/
This research is descriptive and "ualitative type of research which was used to collect useful data .

Sa$p,e SiKe and .et*od o- Se,ecting Sa$p,e/

The sample si0e used for collecting data is ,==.The samples have been collected purely on udgemental basis .The name of the franchisees were collected from the website of !ational (tock Cxchange@!(C- and thereafter "uestionnaires were used to collect data. (tatistical tools are carefully used wherever re"uired .Cfforts has been put to properly analyse the data and come to proper conclusion.

Scope o- Study/
The study was carried in entire 7aipur +ity. It includes franchisees of almost all reputed companies. This report can be used further in similar research work as secondary data.

i$itation o- Study/
>hile carrying research work, lot of problems were faced by usH

It was difficult to obtain correct data and thus we had to visit both companies and their franchisees separately to verify the data.

>e were faced with lack of cooperation by companies and they wanted to keep their data confidential.

In few cases, the company had differentiating plan for their franchisees. The franchisee plan was different according to franchisees.

)act( and )inding(/

This study is a comparative one to find out the difference between the services provided by %arvy to its franchisees and by other companies to its franchisees. The basis on which the data was collected was the basic one on the basis of which a person is interested to take the franchisee of a company. A person taking franchisee always looks to the amount he needs to invest, and whether facility provided to him is worth his investment. The basis of difference on which comparison is made are as followsH !umber of &ranchisees (ecurity 2eposit )egistration +harges Back /ffice +ost Brokerage (haring +lient 2atabase +he"ue 5unching &acility /nline I5/ and Mutual &und facility 1oan against shares and mutual funds Trading limit (upport 1evel Marginal funding /thers

The findings after market comparison has been put into the tabular form as given below H

Ba(i( O!i--erence No" O)ranc*i(ee(

KARVY ,= in )a asthan /ver ,=== in India

SGAR2KGAN ,= in 7aipur

KOTAK S2CURITI2S

Security !epo(it

)s ,8==== @C"uity-P )s ,===== @+ommodity)s .:8== )s .=== per month 35H3=5 9=H6= *es *es *es )s .;=== !o +ost 35H3=5 8=H8= !o !o /nly /nline I5/

)s 3=====

Regi(tration C*arge( Back O--ice Co(t Brokerage S*aring C,ient !ata&a(e C*eIue Punc*ing )aci,ity On,ine IPO and .utua, )und( )aci,ity oan again(t Securitie( and .utua, )und( Trading ,i$it

)s.:8== )s ,=== .5H.=5 8=H8= !o !o *es

*es

/nly loan against (ecurities

/nly 1oan against securities

Intraday?;?,= times 2elivery?3?6 times Fead /ffice

Intraday?8 times 2elivery?3 times Branch /ffice

2epends on customer profile Branch /ffice

Support e%e,

.argina, )unding !e$at opening C*arge( Ot*er(

*es )s 98= AM+?)s 66= .%m &acility TI!$5A! &+

!o &ree opening

*es &ree /pening

Continued"""""
Ba(i( O!i--erence No" O)ranc*i(ee( Security !epo(it Regi(tration C*arge( Back O--ice Co(t Brokerage S*aring C,ient !ata&a(e C*eIue Punc*ing )aci,ity On,ine IPO and .utua, )und( )aci,ity oan again(t Securitie( and .utua, )und( Trading ,i$it ANAN! RATGI ,38 in )a asthan )s ,===== per segment )s 3==== )s .8== per month .5H.=5 8=H8=?sharing ,5H,=5?&ixed !o *es /nline I5/ 1oan against securities Intraday?3 times 2elivery?, time Both Fead /ffice and Branch /ffice *es &ree A(5H Brand !ame )s 8==== 5er segment )s .8=== !o +ost )s ,=== per +rore According to client profile !o !o *es /nly loan against (ecurities Intraday? .? 3times 2elivery? . times Branch /ffice )s .===== )s.;3== !o +ost .5H.=5 8=H8= !o !o *es /nly 1oan against securities 2epends on +lients profile Both Fead /ffice and Branch /ffice !o &ree /pening Initial1evel support, &ree (oftware BONANLA PORT)O IO IN!IA IN)O IN2

Support e%e,

.argina, )unding !e$at opening C*arge( Ot*er(

!o &ree opening Technical +alls, (M( alert

Continued""""
Ba(i( O!i--erence No" O)ranc*i(ee( Security !epo(it NIR.A BANG ,;= in )a asthan Around ,8== all over India )s .===== ANG2 BROKING <=== sub brokers all over India )s ,===== UNICON INV2ST.2NTS

)s ,=====

Regi(tration C*arge( Back O--ice Co(t Brokerage S*aring C,ient !ata&a(e C*eIue Punc*ing )aci,ity On,ine IPO and .utua, )und( )aci,ity oan again(t Securitie( and .utua, )und( Trading ,i$it

)s .;=== )s ;8= per month .5H.=5 9=H6= !o !o *es

)s.:=== !o +ost ,5H,=5 :8H.8 !o !o /nly online I5/

)s .:8== )s 38== per month 2epends on clients profile &ixed ,5H,=5 !o !o !o

/nly 1oan against securities

/nly 1oan against securities

/nly 1oan against securities

Intraday?,= times 2elivery?3 times Both Fead /ffice and Branch /ffice *es &ree opening AM+?)s ..8 &ree insurance with margin che"ue of )s 8=====

Intraday?8 times 2elivery?3 times Branch /ffice

Support e%e,

Intraday? ,= times 2elivery? 3?6 times Branch /ffice

.argina, )unding !e$at opening C*arge( Ot*er(

!o )s 88=

!o

Materials provided for 5romotion and marketing

Ana,y(i( and Interpretation/

!umber of &ranchisees of different Broking Fouse used as samples for data collection

The study was conducted randomly on almost all the franchisees of reputed companies. /ut of ,== franchisees that were selected as samples consisted of Na$e o- Co$panie( BonanKa Anand Rat*i Kotak Securitie( India In-o,ine S*arek*an Nir$a, Bang Ange, Broking Re,iance .oney Re,igare )igure( Hin MB ,8 ,8 ; ,8 ,. 8 ,8 ,= 8

,- Fow long have you been associated with the current companyT a- =?, years c- .?3years b-,?. years d- More than 3 years

It was found in the study that .3M were doing business for less than , year. /ut of these 9;M were those who had switched from some another company due to some problems or had taken new franchisee of different company besides the existing one. /nly ,9M of the franchisees were running for more than 3 years. .8M carried their business for more than . years. Besides this, we noticed that the owner had different franchisees for e"uities and commodities as per the services suitable to them.

.- Fave you heard of %arvyT a- *es b- !o

In the study, <.Mof the franchisees knew well about %arvy. But their their were around ;M of franchisee who did not knew about %arvy. Among these, 68M were those who knew %arvy as )egistrar and transfer agent but were not aware about their e"uity business. This was probably due to reason that %arvy doesn#t go for marketing itself and so few of them were unaware..=M were not even aware of its name.This was due to the reason of less knowledge on part of franchisees about the market competitors.

3- >ould you like to know more about %arvy, especially, %arvy &ortuneT a- *es b-!o

Maximum franchisees showed interest in learning about %arvy &ortune and its plan offered to the franchisees. This data was around <8M who keenly wanted to know about its plan and even raised many "ueries related to it. But 8M of total did not even want to know more about it. This was probably due to reason that they did not had enough time to hear about it, were satisfied with the current organisation or had already interacted with the company and knew its plan completely. But this formed a minimal part of survey.

6- 2o you think that their should be appropriate distance between two franchisees of the same companyT a- *es b- !o

b- 2oesn#t matter

Around 88M of the franchisees agreed to the fact that their should be appropriate distance between two franchisees of the same company as it reduces competition, whereas ,:M disagreed to the fact. According to .;M of franchisees, this facility didn#t matter to them as they will always have competition with other companies, if not %arvy. Those with ma ority agreed to the fact that their should be appropriate distance between franchisees of same organisation because of the fact that we saw many organisations who had their franchisee in the same location and they had to face problems. &ew, who had disagreed to the fact, were right to some point that competition is huge in market and there would definitely be competition with some other organisation and so this facility would prove to be of no use.

8- 2o you work on fixed basis or sharing basisT a- &ixed b- (haring

Their were 38M of the franchisees who worked on fixed basis of ,5H,=5.They did not like to work on sharing basis. They came with a point that by this way they could generate more revenue. )est 98Mworked on sharing basis. /ut of those who worked on sharing basis, 63M worked on :8H.8.This was the most profitable sharing offered to franchisees by some companies when they generated good volume of business.36M worked on sharing of 9=H6= and the rest were working on 8=H8=. It was noticed in the study that no matter how high their sharing was, they were not satisfied with it, and they wanted more than what they were getting.

9- If, on sharing basis than what is your sharing ratioT a- 8=H8= b- :8H.8 b- 9=H6=

/ut of those who worked on sharing basis, 63M worked on :8H.8.This was the most profitable sharing offered to franchisees by some companies when they generated good volume of business.36M worked on sharing of 9=H6= and the rest were working on 8=H8=.The most unsatisfied were those who were working on 8=H8= or 9=H6=.They complained that this was reducing their income and hampering their growth. It was also noticed in the study that no matter how high their sharing was, they were not satisfied with it, and they wanted more than what they were getting.

:- >hat brokerage do you charge from the clientsT a- ,5H,=5 c- 35H3=5 b- .5H.=5 d- /ther

In the study, it was seen that maximum competition was in the brokerage rates only. !ow the clients work with those companies who charges less brokerage.9=M of the franchisees were charging brokerage as low as ,5H,=5.Also .=M were charging brokerage of .5H.=5./nly ,.M of them were taking brokerage of 35H3=5. )est ;M were those who were working on fixed brokerage as )s ;== per crores.

;- >here do you get support level fromT a- Fead /ffice b- Both b-Branch /ffice

It was found that ,;M of the support level to the franchisees was given by Fead /ffice whereas 66M were served by Branch /ffice. )est 3;M were served by both head office and branch office. Those who were served by both of them complained that the problems were not solved immediately.3=M of franchisees claimed that their problems were not solved immediately and it took little time as their was a chain from Branch office to head office.

<- Are they able to solve your problems on immediate basisT a- *es b- !o

:=M of the franchisees claimed that their problems were immediately solved or took a minimal time if the problem is big. )est 3=M denied to the fact that the problem was solved at immediate basis. They complained that their was no specific person who could listen to their problems. They had to sometime call the local branch office initially and if they could not solve their problem, only then they will be entertained at head office.

,=-2o you feel the re"uirement of che"ue punching facilityT a- *es b- !o

In case of provision of che"ue punching facility,9;M liked this facility as it made their work easy and saved time which would otherwise be wasted to send those che"ues to branch office at first. This also enabled them to open trade limit of their clients in mere ,= minutes. Also this facility is not provided by every company. )est 3.M didn#t feel the re"uirement of the same.

,,->hat is your Back?/ffice costT a- !o +ost b- 1ess than )s ,===

c- )s ,===?.===

d- More than )s .===

In the study, it was found, that 96M of the franchisees didn#t incur any back?office cost.,8M of franchisees incurred cost less than )s ,===./nly .,M of franchisee were paying back office cost of more than )s ,=== out of which 9M were paying more than )s .===.

,.-2o you think it is reliableT

a- *es

b- !o

Those who were paying these costs found it to be unreliable.:.M people said that these costs were unreliable..;M still found it reliable if some add?on facility is given to them.

,3-2o you think client database would help you to grow businessT a- *es b- !o

b- 2oesn#t matter

In the study, it was found that only 6=M of the franchisees agreed to the fact that client database can help them grow business..8M completely disagreed to this thing. According to the rest 38M of the franchisees, client database would only help those people who are new to business and do not have good client base. Those who are well established in this business do not re"uire client database.

,6->ould you like to avail TI!$5A! &+T

a- *es

b- !o

93M of the franchisees showed interest in having TI!$5A! &+. )est 3:M felt that TI!$5A! &+ would be an additional investment, would re"uire more manpower and generates less income as compared to investment. They even felt that the security deposit of )s ,===== was very high as compared to income derived from it.

,8-2o you think TI!$5A! &+ will help you in getting more clientsT a- *es b-!o

2espite of not interested to have TI!$5A! &+, they agreed to the fact that it can help in getting more clients to trade with them. Those clients who come for getting their 5an +ard can easily be tapped to open their 2emat Account. C?T2( facility along with it is a good option for them.

,9-After knowing services provided by %arvy, would you like to be associated with itT

a- *es b- >ill tell later

b- !o

It was noticed while carrying out the study that few franchisees were interested in the plan given by %arvy because of its Brand name and good facility. They were ready to open a franchisee of %arvy at different location other than they were working presently but their were few things which stopped them such as high security deposit, high back office cost, high brokerage and less sharing.98M of franchisees refused as they found the plan costly.,;M showed interest in associating with %arvy. )est ,:M said that they would contact the company later.>hile carrying this research work, their was one suggestion which was given to us by the franchisees which needed to be amended in the plan seriously to make it a good plan enough to attract franchisees. This one thing was to reduce the cost and increase the sharing. This is highly re"uired in the competitive market otherwise it would be difficult for %arvy to sustain in the market.

S'ot Ana,y(i(

Cvery company has certain strengths and weaknesses, no company can be perfect, if it is giving good services then it has to be little costly otherwise it would run into loss. (imilarly there is opportunity and threats for every organisation. 2uring our study covering whole aspect of market and competitors, we did (>/T analysis for the company with respect to various factors in market.

STR2NGTG
Brand !ame All financial needs under one roof. &ull fledge research units comprising of both fundamental and technical research. 4uality service provided to clients.

Ceakne((
1ow advertisements Figh +ost structure

Opportunity
5otential Market for investors Tapping those people who are not satisfied with their existing business. More aware people intending to invest in markets with right companies

T*reat
Drowing competition in this sector 2ecreasing Brokerage )ates

CONC USION/

After conducting the research work, and analy0ing it carefully, it was seen that there are many other broking firms besides %arvy which are giving good competition to the company. It was also noticed that franchisees intend to switch easily provided they are offered with a profitable plan. !o franchisee was completely satisfied by its company and wanted certain additional facilities. >e came to certain conclusion after the study which is as followsH ,- There is tough competition in the market and hence the company needs to make flexible plan rather than a fixed policy to sustain in the market and retain the existing clients. .- It is easy to takeover franchisees who are not satisfied with their existing companies by giving them a better option. 3- The brokerage rates charged by %arvy are high and it should be reduced if it wants more clients to deal with it. 6- It was also noticed that few people still know %arvy as registrar and transfer agent and not aware of its C"uity business. The company needs to create awareness in the market for the same. 8- The plan of %arvy is good provided the cost is reduced according to what is prevailing in the market. &ew services like che"ue punching facility, loan against Mutual funds, Marginal funding is not provided by everyone in the market. 9- The provision of client database is a good option for those franchisees only who are new to the business, rest all did not found this facility useful as they already had good network, though it can be used to grow the business. :- TI!$5A! &+ is a good option and an additional business to earn income. !ot all companies can offer the same as authority lies with 6 companies only i.e. ATI, (hell, Alankrit and %arvy. This can be add?on facility can be used to attract franchisees toward %arvy provided C"uity &ranchisee P TI!$5A! &+ is offered at a reasonable security deposit. ;- In the research work, it was found that company had different franchisee plans depending on the business generated by their franchisees. Those who generated high volume were given good facilities than the rest. %arvy#s policy is same for all type of franchisees.

Reco$$endation and Sugge(tion(/

The company had a very good plan and intended to serve its franchisee in the best possible manner but it had few shortcomings due to which the brokers didn#t showed interest in having the %arvy franchisee despite of liking it. Also due to these few shortcomings %arvy failed to achieve its target of activating new &ranchisee in the 7aipur region. If these pitfalls are removed,then the plan would work better and attract more franchisees as %arvy is a big brand. ,- The Brokerage charges, 3 paisa and 3= paisa for intraday and delivery respectively, are "uiet high. In the competitive market where brokerage is as less than ,5H,=5,it is difficult to attract investors to trade at 35H3=5.It should be reduced.

.- The security deposit of )s ,8====@C"uity- and )s,===== @commodity- was high as compared to other plans in the market. It should be reduced to at least )s ,===== for both C"uity and +ommodity.

3- The percentage of sharing of brokerage which currently isH (ub broker shipH 9=H6=@sub?brokerH karvy)emissers H 6=H9=@remissersH karvy-

It should also be changed. 2uring the market study, it was felt that the sharing of franchisees was very low and lot of sub?brokers "uestioned on it and so it is suggested to increase their sharing and make it to :=H3= for franchisees and 8=H8= for remissers. 6- The back?office cost of )s .=== per month is not reliable and it should be completely finished off.

APP2N!IN

8ue(tionnaire

Su& Broker Addre((

Contact No

26 $ai,

,- >hich company are you currently associated withT UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU .- Fow long have you been associated with the current companyT b- =?, years c- .?3years 3Fave you heard of %arvyT b- *es b- !o b-,?. years d- More than 3 years

6- >ould you like to know more about %arvy, especially, %arvy &ortuneT b- *es b-!o

8- 2o you think that their should be appropriate distance between two franchisees of the same companyT c- *es d- 2oesn#t matter b- !o

9- 2o you work on fixed basis or sharing basisT b- &ixed b- (haring

:- If, on sharing basis than what is your sharing ratioT c- 8=H8= d- :8H.8 ;- >hat brokerage do you charge from the clientsT b- ,5H,=5 c- 35H3=5 <- >here do you get support level fromT c- Fead /ffice d- Both ,=-Are they able to solve your problems on immediate basisT b- *es b- !o b-Branch /ffice b- .5H.=5 d- /ther b- 9=H6=

,,-2o you feel the re"uirement of che"ue punching facilityT b- *es ,.->hat is your Back?/ffice costT b- !o +ost c- )s ,===?.=== ,3-2o you think it is reliableT b- *es b- !o b- 1ess than )s ,=== d- More than )s .=== b- !o

,6-2o you think client database would help you to grow businessT c- *es d- 2oesn#t matter b- !o

,8->ould you like to avail TI!$5A! &+T b- *es b- !o

,9-2o you think TI!$5A! &+ will help you in getting more clientsT b- *es b-!o

,:-After knowing services provided by %arvy, would you like to be associated with itT c- *es c- >ill tell later b- !o

)ecommendationsH UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU UUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU

BIB IOGRAPGY

Ce&(ite(/

www.karvy.com www.indiacorporateadvisor.com www.themanagementor.com www.nsdl.co.in www.wikipedia.com www.sharekhan.com www.bonan0aonline.com www.kotaksecurities.com www.rathionline.com www.indiainfoline.com www.angelbroking.com www.nirmalbang.com www.reliancemoney.com www.religare.in www.uniconindia.in www.nseindia.com www.amfiindia.com www.researchandmarkets.com www.indiamba.com www.ibef.org www.entrepreneur.com www.franchisemoneymaker.com www.franchi0e.info

Book( and $agaKine(/

The franchising >orld %arvy? The &inapolis %arvy?Ba0aar Baatein Times of India Cconomic times