,

CHAPTER I INTRODUCTION
1.1 COMMODITY MARKET Commodity Market, is an organized traders' exchange in which standardized, graded products are bought and sold. Worldwide, there are 48 major commodity exchanges that trade over 9 commodities, ranging !rom wheat and cotton to silver and oil. "ost trading is done in !utures contracts, that is, agreements to deliver goods at a set time in the !uture !or a price established at the time o! the agreement. #utures trading allows both hedging to protect against serious losses in a declining mar$et and speculation !or gain in a rising mar$et. #or example, a seller may sign a contract agreeing to deliver grain in two months at a set price. %! the grain mar$et declines at the end o! two months, the seller will still get the higher price &uoted in the !utures contract. %! the mar$et rises, however, speculators buying grain stand to pro!it by paying the lower contract price !or the grain and reselling it at the higher mar$et price. 'pot contracts, a less widely used !orm o! trading, call !or immediate delivery o! a speci!ied commodity and are o!ten used to obtain the goods necessary to !ul!ill a !utures contract. (n independent ).'. regulatory agency, the *ommodity #utures +rading *ommission was established in ,9-4 to regulate commodity mar$ets. %n ,98., the *hicago "ercantile /xchange introduced a !utures contract !or 'tandard 0 1oor's 233 ).'. companies that allows investors to speculate on the !uture prices o! those stoc$s. +rading o! '01 233 and other !inancial !utures has bro$en down some o! the barriers that once separated stoc$, bond, and commodity mar$ets and made it easier !or investors to hedge their stoc$ investments. *ritics charge that the !utures trading at the commodity mar$ets in *hicago has made stoc$ prices more volatile.

. +he *hicago 4oard o! +rade is the largest !utures and options exchange in the )nited 'tates, the largest in the world is /urex, an electronic /uropean exchange. Overview o !ommoditie" e#!$a%&e" i% I%dia #orward "ar$ets *ommission 5#"*6 head&uartered at "umbai is a regulatory authority, which is overseen by the "inistry o! *onsumer (!!airs and 1ublic 7istribution, 8ovt. o! %ndia. %t is a statutory body set up in ,929 under the #orward *ontracts 5:egulation6 (ct, ,92.. ;+he (ct 1rovides that the *ommission shall consist o! not less then two but not exceeding !our members appointed by the *entral 8overnment out o! them being nominated by the *entral 8overnment to be the *hairman thereo!. *urrently *ommission comprises three members among whom 7r. <ewal :am, %/', is acting as *hairman and 'mt. 1adma 'waminathan, and 7r. 5'mt.6 =ayashree 8upta, are the "embers o! the *ommission.; T$e '%!tio%" o t$e (orward Market" Commi""io% are a" o))ow"* +a, +o advise the *entral 8overnment in respect o! the recognition or the withdrawal o! recognition !rom any association or in respect o! any other matter arising out o! the administration o! the #orward *ontracts 5:egulation6 (ct ,92.. +-, +o $eep !orward mar$ets under observation and to ta$e such action in relation to them, as it may consider necessary, in exercise o! the powers assigned to it by or under the (ct. +!, +o collect and whenever the *ommission thin$s it necessary, to publish in!ormation regarding the trading conditions in respect o! goods to which any o! the provisions o! the act is made applicable, including in!ormation regarding supply, demand and prices, and to submit to the *entral 8overnment, periodical reports on the wor$ing o! !orward mar$ets relating to such goods>

+d, +o ma$e recommendations generally with a view to improving the organization and wor$ing o! !orward mar$ets> +e, +o underta$e the inspection o! the accounts and other documents o! any recognized association or registered association or any member o! such association whenever it considerers it necessary. T$e )i"t o e#!$a%&e" t$at $a" -ee% a))owed to trade i% !ommoditie" are ,. 4hatinda ?m 0 ?il /xchange @td., 4atinda. .. +he 4ombay *ommodity /xchange @td."umbai 9. +he :aj$ot 'eeds oil 0 4ullion "erchantsA (ssociation @td 4. +he <anpur *ommodity /xchange @td., <anpur 2. +he "eerut (gro *ommodities /xchange *o. @td., "eerut . +he 'pices and ?ilseeds /xchange @td. -. (hmedabad *ommodity /xchange @td. 8. Bijay 4eopar *hamber @td.,"uza!!arnagar 9. %ndia 1epper 0 'pice +rade (ssociation. <ochi ,3. :ajdhani ?ils and ?ilseeds /xchange @td. , 7elhi ,,. Cational 4oard o! +rade. %ndore. ,.. +he *hamber ?! *ommerce, Dapur ,9. +he /ast %ndia *otton (ssociation "umbai. ,4. +he *entral %ndia *ommercial /xchange @td, 8waliar ,2. +he /ast %ndia =ute 0 Dessian /xchange @td, , . #irst *ommodity /xchange o! %ndia @td, <ochi ,-. 4i$aner *ommodity /xchange @td., 4i$aner ,8. +he *o!!ee #utures /xchange %ndia @td, 4angalore. ,9. /sugarindia @imited. .3. Cational "ulti *ommodity /xchange o! %ndia @imited. 5C"*/6 .,. 'urendranagar *otton oil 0 ?ilseeds (ssociation @td, ... "ulti *ommodity /xchange o! %ndia @td. 5"*E6

4 .9. Cational *ommodity 0 7erivatives /xchange @td. 5C*7/E6 .4. Daryana *ommodities @td., Dissar .2. eF*ommodities @td. ?ut o! these .2 commodities the "*E, C*7/E and C"*/ are large exchanges and "*E is the biggest among them. Natio%a) Commodity . Derivative" E#!$a%&e /imited +NCDE0, is a pro!essionally managed online multi commodity exchange promoted by %*%*% 4an$ @imited 5%*%*% 4an$6, @i!e %nsurance *orporation o! %ndia 5@%*6, Cational 4an$ !or (griculture and :ural 7evelopment 5C(4(:76 and Cational 'toc$ /xchange o! %ndia @imited 5C'/6. 1unjab Cational 4an$ 51C46, *:%'%@ @imited 5!ormerly the *redit :ating %n!ormation 'ervices o! %ndia @imited6, %ndian #armers #ertiliser *ooperative @imited 5%##*?6 and *anara 4an$ by subscribing to the e&uity shares have joined the initial promoters as shareholders o! the /xchange. C*7/E is the only commodity exchange in the country promoted by national level institutions. +his uni&ue parentage enables it to o!!er a bou&uet o! bene!its, which are currently in short supply in the commodity mar$ets. +he institutional promoters o! C*7/E are prominent players in their respective !ields and bring with them institutional building experience, trust, nationwide reach, technology and ris$ management s$ills. C*7/E is a public limited company incorporated on (pril .9, .339 under the *ompanies (ct, ,92 . %t obtained its *erti!icate !or *ommencement o! 4usiness on "ay 9, .339. %t has commenced its operations on 7ecember ,2, .339. C*7/E is a nationFlevel, technology driven deFmutualized onFline commodity exchange with an independent 4oard o! 7irectors and pro!essionals not having any vested interest in commodity mar$ets. %t is committed to provide a worldF class commodity exchange plat!orm !or mar$et participants to trade in a wide spectrum o! commodity derivatives driven by best global practices, pro!essionalism and transparency.

2 C*7/E is regulated by #orward "ar$et *ommission in respect o! !utures trading in commodities. 4esides, C*7/E is subjected to various laws o! the land li$e the *ompanies (ct, 'tamp (ct, *ontracts (ct, #orward *ommission 5:egulation6 (ct and various other legislations, which impinge on its wor$ing. C*7/E is located in "umbai and o!!ers !acilities to its members in more than 223 centres throughout %ndia. +he reach will gradually be expanded to more centres. C*7/E currently !acilitates trading in 42 commodities F *ashew, *astor 'eed, *hanna, *hilli, *o!!ee F (rabica, *o!!ee F :obusta, *ommon 1arboiled :ice, *ommon :aw :ice, *otton 'eed ?ilca$e, *rude 1alm ?il, /xpeller "ustard ?il, 8roundnut 5with shell6, 8roundnut /xpeller ?il, 8rade ( 1arboiled :ice, 8rade ( :aw :ice, 8uar gum, 8uar 'eeds, 8ur, =eera, =ute sac$ing bags, %ndian .8 mm *otton , %ndian 9, mm *otton, @emon +ur, "aharashtra @al +ur, "asoor 8rain 4old, "edium 'taple *otton, "entha ?il , "ulberry 8reen *ocoons , "ulberry :aw 'il$ , :apeseed F "ustard 'eed, 1epper, :aw =ute, :47 1almolein, :e!ined 'oy ?il , :ubber, 'esame 'eeds, 'oy 4ean, 'ponge %ron, 'ugar, +urmeric, )rad 54lac$ "atpe6, BF-9- <apas, Wheat, Gellow 1eas, Gellow :ed "aize, Gellow 'oybean "eal, /lectrolytic *opper *athode, "ild 'teel %ngots, 'ponge %ron, 8old, 'ilver, 4rent *rude ?il, #urnace ?il. (t subse&uent phases trading in more commodities would be !acilitated. MC0 an independent and deFmutulised M')ti Commodity E#!$a%&e has permanent recognition !rom 8overnment o! %ndia !or !acilitating online trading, clearing and settlement operations !or commodity !utures mar$ets across the country. <ey shareholders o! "*E include #inancial +echnologies 5%6 @td., 'tate 4an$ o! %ndia 5%ndiaHs largest commercial ban$6 0 associates, #idelity %nternational, Cational 'toc$ /xchange o! %ndia @td. 5C'/6, Cational 4an$ !or (griculture and :ural 7evelopment 5C(4(:76, D7#* 4an$, '4% @i!e %nsurance *o. @td., )nion 4an$ o! %ndia, *anara 4an$, 4an$ o! %ndia, 4an$ o! 4aroda and *orporation 4an$.

Dead&uartered in "umbai, "*E is led by an expert management team with deep domain $nowledge o! the commodity !utures mar$ets. +hrough the integration o! dedicated resources, robust technology and scalable in!rastructure, since inception "*E has recorded many !irst to its credit. %naugurated in Covember .339 by 'hri "u$esh (mbani, *hairman 0 "anaging 7irector, :eliance %ndustries @td, "*E o!!ers !utures trading in the !ollowing commodity categoriesI (gri *ommodities, 4ullion, "etalsF #errous 0 ConF!errous, 1ulses, ?ils 0 ?ilseeds, /nergy, 1lantations, 'pices and other so!t commodities. "*E has built strategic alliances with some o! the largest players in commodities ecoFsystem, namely, 4ombay 4ullion (ssociation, 4ombay "etal /xchange, 'olvent /xtractors' (ssociation o! %ndia, 1ulses %mporters (ssociation, 'het$ari 'anghatana, )nited 1lanters (ssociation o! %ndia and %ndia 1epper and 'pice +rade (ssociation. +oday "*E is o!!ering spectacular growth opportunities and advantages to a large cross section o! the participants including 1roducers J 1rocessors, +raders, *orporate, :egional +rading *enters, %mporters, /xporters, *ooperatives, %ndustry (ssociations, amongst others "*E being nationFwide commodity exchange, o!!ering multiple commodities !or trading with wide reach and penetration and robust in!rastructure, is well placed to tap this vast potential. 1$eat ('t're" Wheat is a cereal grain grown and consumed worldwide. :ecent projections by the %nternational #ood 1olicy :esearch %nstitute 5%#1:%6 indicate that, by .3.3, twoFthirds o! the worldHs wheat consumption will occur in developing countries, where wheat imports are estimated to double by .3.3.Wheat demand worldwide is calculated to rise by 43K !rom ,999 to .3.3 to reach --2 million tons. +he expected increase in demand is partly motivated by population growth but also

results !rom substitution out o! rice and coarse grain cereals as incomes rise and populations become increasingly based in urban areas. I%dia% 2!e%ario %ndia produces about -3 million tonnes o! wheat per year or about ,. per cent o! world production. %t is now the second largest producer o! wheat in the world. 4eing the second largest in population, it is also the second largest in wheat consumption a!ter *hina, with a huge and growing wheat demand. #ood grain production occupies the most dominant position in %ndiaHs agriculture, covering over 2 per cent o! the gross cropped area. 1$eat Trade -y I%dia I%dia3" Trade i% 1$eat +444 to%%e", Year ,993J9, ,99,J9. ,99.J99 ,999J94 ,994J92 ,992J9 ,99 J9,99-J98 ('t're" i% 1$eat* Wheat spot mar$et is well developed in %ndia that is a precondition !or any commodity to be success!ul in #uture trading. "ar$et has well developed breadth and depth with the presence o! general consumer to wheat based industries that includes Wheat !lourmills, 4iscuits manu!acturers etc. Im5ort" 4 F ,9 4 .4. , 9 , ,942 4 9. ,39. ,848 . E#5ort" ,43 3 98

Ri!e ('t're" ('t're" tradi%& i% Ri!e :ecent development in the government policy is well set to provide ideal plat!orm !or !uture trading in the rice to happen. #irst is that in last years i.e. in the year .339F34 government did not increase the "'1 "inimum 'upport 1rice which had been distorting the mar$et. 'econd is that 8overnment has allow private party to purchase !rom the !armers directly. +his would bring transparency and e!!iciency in the mar$et place. (ll the pre re&uisite condition !or success!ul !uture trading is inherent with rice. WellFdeveloped physical mar$et coupled with presence o! large number o! mar$et participants ranging !rom export house, corporate bodies, and traders to !armers already exists. %ndia has been a traditional exporter o! high &uality rice 54asmati or 'uper #ine 1armal6 but since .33,, it released about ,9 million tonnes o! common riceJparboiled rice !or exports. /xports contribution was about 8 million tonnes during .33.F39. +here are over ,33 varieties o! aromatic rice, o! which 4asmati is the costliest. +here are ,, varieties grown in %ndia, o! which 4F2 is exported all over the world. Mai6e ('t're" I%dia Im5ort a%d E#5ort o Mai6e %ndia negligibly imports maize however in recent years there is sign o! export. +his is due to the !act o! increase in production coupled with meeting domestic re&uirement.

Corn Export from India

600 Thousands tons 500 400 300 200 100 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Year

('t're i% Mai6e

'pot "ar$et o! "aize is well developed "ar$et depth is there with the presence o! industry such as 'tarch, 1oultry !eed sector 1rice volatility is present which impress upon the !act o! need o! hedging

Red C$i))y ('t're" %ndia is the worldHs largest producer, consumer and exporter o! chillies in the world. %ndia also has the largest area under chillies in the world. *hillies are the most common spice cultivated in %ndia. %t is grown nearly in all parts o! the country, hills and plains ('t're" Tradi%& +he commodity has well established spot mar$ets. +he trade channel involves several members viz., a village level trader, commission agent, wholesaler, retailer, agents !or exporters and exporters. +he commodity changes hands several times, exposing all these members to price ris$.

,3 +he commodity displays high volatility, with the prices heavily dependent on season, production in di!!erent producing tracts spread across the country, demand !rom exporters and the stoc$ available at the cold storages. +here are several grades and varieties o! chillies grown across %ndia. %! this single variety is o!!ered !or !utures trading, it will be possible to o!!er a relatively homogenous product !or !utures trading. +he prices o! the major chilly varieties sold in the country are correlated with each other. (s a result, the players in other varieties can also hedge their ris$s through this single variety. 7o)d ('t're" %ndia is the world's largest consumer o! gold. (ccording to 8old #ield "inerals 'ervice, in .33, it absorbed around -33 tons !rom the world mar$et, compared to just 9.3 tons in ,994. 7evelopment o! gold !utures would help in e!!icient price discovery and emergence o! healthy and transparent practices in the mar$et. +he basic !ramewor$ !or such an exchange already exists with ,9 ban$s active in import o! precious metals. #ive o! them have launched the 8old 7eposit 'cheme also. +hey can also enter into !orward contracts in a limited way. +o begin with the ban$s can start trading among themselves and also with big traders according to the demandJsupply dynamics. #utures in gold apart !rom o!!ering jewellery manu!acturers and exporters the chance o! hedging their inventories would provide many other investors or speculators with a cheap and highly e!!icient way o! getting into gold.

,, 2i)ver ('t're" 'uitability o! 'ilver #uturesI )ncertain 'upply 0 7emand #actors World mine production is more a !unction o! the prices o! other metals. ?!ten a !aster growth in demand against supply leads to drop in stoc$s with government and investors. /conomically viable primary silver mine is a !unction o! the world silver price level. 'ilver demand stands on three pillers L jewellery 0 silverware, industrial and photography, which are in turn !actors o! monsoon 0 agricultural output, overall industrial growth and per!ormance o! the tourism 0 services industry at large, respectively. %n %ndia the real industrial demand occupies a small share in the total industrial demand o! silver in sharp contrast to most developed economyHs li$e =apan and )'. %n %ndia li$e 8old the 'ilver demand is also determined to a large extent by its price level and volatility. %n recent years %ndia has seen increased imports !rom *hina both in the legal and illegal route via Dong <ong. %n %ndia the real industrial demand occupies a small share in the total industrial demand o! silver in sharp contrast to most developed economyHs li$e =apan and )'. %n %ndia li$e 8old the 'ilver demand is also determined to a large extent by its price level and volatility. 25o%&e Iro% 'ponge iron is a metallic product produced through direct reduction o! iron and iron ore pellets in the solid state. %t is a substitute !or scrap and is mainly used in ma$ing steel

,. Need or 25o%&e Iro% ('t're" (lthough the sponge iron prices have appreciated by ,33K !rom the previous yearsH level, on bac$ o! !avorable business dynamics, a !irm trend in realization per unit can be expected. "ounting cost o! basic inputs and high price volatility in the raw material prices increases the need !or price ris$ management. Dowever, going !orward helps to decrease the cost. +hus steel production is li$ely to grow at KF-K, the demand !or sponge iron is li$ely to grow at more than ,3 percent till the year .33- and then expected to stabilize at 8 percent a!ter than. 7omestic industry is shows improved per!ormance on bac$ o! higher volume, increased operating e!!iciency and !inancial restructuring. Cr'de oi) 't're" +he %ndian government has now permitted oil companies in %ndia to hedge against commodity price ris$s while importing crude and petroleum products. +his initiative has been ta$en by the %ndian government in a bid to protect the economy !rom the volatility o! international crude prices. (ll oil companies having underlying exposures in crude and petroleum products will now be allowed to import and hedge !uture prices against the drastic volatility o! the prices in the hydrocarbon sector. +his has almost become a necessity !or a country li$e %ndia, which imports -3 percent o! its petroleum re&uirement and needs to be protected against such price movements in the %nternational oil mar$ets. ?il companies such as the %ndian ?il *orporation 5%?*6, :eliance 1etroleum and ":1@ are expected to be the bene!iciaries o! this move !rom the government. +he hedging !acility is to be subjected to detailed guidelines to be issued by the :4% and is expected to ma$e %ndian producers more e!!icient and enable them to compete in the %nternational mar$ets.

,9 +he hedging mechanism is based on a benchmar$ crude !or which price &uotes are available. /ach o! the above exchanges that trade in oil !utures has their own crude benchmar$s. %n the oil !utures mar$et, the &uotes are usually !or a period o! about six months and the buyer o! the !uture needs to ta$e a position !or a particular &uantity to be physically delivered at a particular point o! time. +he advantage !or the buyer would be that i! prices moved up by the time that the physical delivery o! the product ta$es place, the buyer is compensated with an adjustment and a settlement with the di!!erence being paid bac$. +he buyer thus is able to hedge against an increase in the prices o! crude and petroleum products. %n the case wherein there is a !all in the prices o! crude and petroleum products then the sellers interest is protected as the delivery is made on the agreed price by the buyer. R'--er ('t're" Worldwide, the automobile industry is the single largest consumer o! natural rubber in the !orm o! auto tyres and tubes and certain other parts and accessories. /conomic recession anywhere !irst hits this industry be!ore any other industry. +here!ore, the world price o! rubber goes through a cycle o! !ew years o! boom !ollowed by a !ew years o! busts with the state o! world economy. %n .33,, %ndia was the third largest producer and !ourth largest consumer o! natural rubber in the world. %ndia produces about la$h tons o! rubber 5worth around :s. 9333 crore6 annually and over 93 percent o! the production is in the southern state o! <erala. E!o%omi! rea"o%" or 't're" tradi%& ,. Bolatile prices .. 8lobal impacts on prices are signi!icant because cost o! production o! natural rubber in %ndia is on the higher side compared with other major producers. 9. 7i!!used consumption> concentrated production 4. Cumerous growers and growers cooperatives 2. *onsumption majors are tyre manu!actures who are !ew in numberI !utures may provide a price level playing !ield !or growers

,4 . Bolatile global production and consumption tendencies -. 'torability is on the higher side Pe55er ('t're" 1epper is $nown !or its price volatility and is among the highest in agricultural commodities. #rom the levels o! :s. 8333 per &uintal in late ,99 , the prices have touched :s. ..333 in early ,998, :s, .2333 in late ,999 and currently bac$ at :s. 8333 levels. +he period (pril ,998 L (pril .339 have seen more price decreases on a monthly basis than price increases. 8enerally around -2K o! production o! pepper is exported. %ndia has !airly success!ul story in blac$ pepper !utures and is the only country to have an exchange !or pepper !utures. (ttempts !or internationalising pepper !utures mar$ets have not succeeded. (a!tor" t$at avor 't're" tradi%& 'igni!icant price volatility Digh degree o! storability #airly standardized &uality "ore o! an internationalized commodity Cumerous sta$eholders in the supply chain including small growers, traders 5exporters and importers6 and processors ('t're" i% 2'&ar 'ince 'ugar industry is being slowly decontrolled by the government, mar$et !orce would be putting its impact on the price behavior o! the commodity. %ndia is the only country in the world where sugar price goes against the sugarcane price. %t indicates too much inter!erence o! the government in the industry. #or the industry to become competitive allowing !uture trading would lead to revivals o! real mar$et !orces which will be !or good health o! the industry in the long term. (ll the !actors !or success o! !uture trading such as organized and developed spot mar$et,

,2 large number o! participants, and active traders are very much present in the %ndian sugar industry. 4yproducts o! sugar cane industry is getting a lot o! attention and it would add depth in the mar$et. 'ugar based new industry such as ethanol and its use as !uel that has been mooted by government would constantly strengthen the scope o! sugar !uture trading. 1.8 A9OUT THE OR7ANI:ATION KAR;Y 2TOCK 9ROKIN7 /TD %n ,98., a group o! Dyderabad L based practicing *hartered (ccountants started <arvy *onsultants @imited with a capital o! :s.,23333 o!!ering auditing and taxation services initially. @ater, it !orayed into the :egistrar and 'hare +rans!er activities and subse&uently into !inancial services. ( decade o! commitment, pro!essional integrity and vision helped <arvy achieve a leadership position in its !ield. %t handled the largest number o! issues ever handled in the history o! the %ndian stoc$ mar$et in a year. +herea!ter, <arvy made inroads into a host o! capital mar$et services, corporate and retail L that proved to be a sound business synergy. +oday, <arvy has access to millions o! %ndian shareholders, besides companies, ban$s, !inancial institutions and regulatory agencies. ?ver the past one and hal! decades, <arvy has evolved as a veritable lin$ between industry, !inance and people. %n =anuary ,998, <arvy became the !irst depository participant in (ndhra 1radesh. (n %'? 933. company, <arvyHs *ommitment to &uality and retail reach has made it an integrated !inancial services company. (EATURE2 O( KAR;Y

, 'trategic alliance with (merican /xpress 4an$ !or mar$eting (mex personal ban$ing products. +he !irst !inancial intermediary to get %'? 933. certi!ication in the country. (rrangers o! !unds to the corporate li$e %74%, %*%*%, (1 'tate 8ovt. )nderta$ings, 5'4%"#, @%*"#, )+%, +empleton "#, 1rudential %*%*%, (lliance, <othari, 1ioneer, 4irla etc6. Wide Cetwor$ L - branches across the country. +he Co., registrar to the issues in the country since 9,F9.. +he Co., !und mobilizes !rom primary mar$et !or the year 9-F98. 7epository participant with C'7@. 1ro!essional investment (dvisory services.

Karvy<A% i%te&rated i%a%!ia) i%termediary o er" t$e o))owi%& "ervi!e" 7epository (ccounts 5/ L 'a!e 0 / L 1rivilege6 'econdary trading o! shares J 7ebentures "utual !und schemes #ixed deposits 1ublic issues o! 4onds, 7ebentures and /&uity shares. :4% 8K relie! bonds :4% .2K tax !ree relie! bonds 8?% 8K savings bonds )+% 'chemes 'avings ban$ accounts o! (merican /xpress 4an$ #ixed deposit o! (merican /xpress 4an$ *ar loans J 1ersonal loans !rom (merican /xpress 4an$ 'mall savings schemes *orporate advisory services :egistrar to the public issues

, "erchant ban$ing and underwriting (sset !inancial including short term debt syndication. 4onds 51rivate 1lacement6 "anaged to the issues o! 4onds o! %*%*%, %74%, 1ower !inance corporation ltd.

,8 2ER;ICE HAND/ED 9Y KAR;Y <arvy handles personalized !inancial advisory services to the organizations as well as to individuals. DEPO2ITORY 2ER;ICE :egistered as 71 both with C'7@ 0 *7'@ 'ervicing over lac investors

?nline connectivity at Dyderabad, @uc$now 0 4angalore :an$ed among the top 2 71s in the country Digh synergy with registry and bro$ing activities !or higher service levels to the customer Web based customer in!ormation 1rovision o! service in over -2 locations.

PRINCIPA/ 1IN72 ,. .. 9. 4. 2. . -. <arvy *onsultants @imited %ssue 'ervicing *orporate share holder servicing 7epository participant services "utual #und investor services <arvy *omputer 'hare 1vt @imited 7istribution o! !inancial products <arvy %nvestor 'ervice @imited %nvestment ban$ing 0 corporate advisory services <arvy stoc$ bro$ing limited <arvy 8lobal 'ervice @td, <arvy *ommodities 4ro$ing @td <arvy %nsurance 4ro$ing 1vt @td

,9 ADOPTION O( TECHNO/O7Y /xpertise in integrating technology 0 !inance 1ool o! trained so!tware pro!essionals +op o! the line technology partners 1roactive adaptation o! changes in technology

(INANCIA/ 2ER;ICE2 'trong advisory 0 syndication strengths Wide geographical reach 0 all %ndia service networ$ :etail distribution networ$ !or investment products (ccounting, secretarial 0 compliance strengths (utomated retail response management Douse hold brands %+ enabled service delivery *ontrolled 0 low cost structure

MA=OR ACHIE;EMENT2 world6 1ublic issue !und mobiliser L (mong top 2 *ategory % merchant 4an$ing L Co.9 5(pr L =une 336 'toc$ 4ro$ing L (mong top ,3 "edical +ranscription L (mong top 2 7epository participant 5:an$ed by C7'@6 Co. o! investors serviced L (mong top 2. :an$ed among the top 23 599th6 %+ users in %ndia by "%' 'outh (sia 57ecH 98 and 7ecH 996 #irst %'? 933. certi!ied registrar in %ndia 5?ver 233 issues6 :egistrar to public issues L :an$ed Co., :egistrar 0 +rans!er (gentL:an$ed Co., 5(mongst the largest in the

.3 Dandled largest ever public issue L %74%. 1layed the role o! major !acilitator o! issues as arrangers, as coF managers, as registrars to issues.