A Study On "Market Potential in Indian Stock Markets" With Special Reference To (Karvy Stock Broking Ltd. Visakhapatnam)

A STUDY ON
“MARKET POTENTIAL IN INDIAN STOCK MARKETS”

WITH SPECIAL REFERENCE TO
(KARVY STOCK BROKING LTD. VISAKHAPATNAM)
A project report submitted in the partial fulfillment of the requirements for the
Award of the degree of
MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY
BANDILA PRADEEP
Roll No.115200202048
Under the esteemed guidance of
Prof. M.Madhusudhana Rao (PhD)
Head of the Department
ANDHRA UNIVERSITY
A STUDY ON
MARKET POTENTIAL ON INDIAN STOCK MARKET

WITH REFERENCE TO KARVY
A project report submitted to AU Visakhapatnam, in partial fulfillment
for the award of the degree of

Submitted by
B.KISHORE
Regd. No: 116232602072
Under the guidance of
Y. UMA NOOKARATNAM, MBA

Assistant Professor
Department of Management Studies
SRINIVASA INSTITUTE OF MANAGEMENT STUDIES

(Affiliated to ANDHRA UNIVERSITY ,Approved by AICTE, Government of INDIA)
P.M PALEM, MADHURWADA, VISAKHAPATNAM – 530041
2016 – 2018
A STUDY ON
MARKET POTENTIAL ON INDIAN STOCK MARKET

WITH REFERENCE TO KARVY
A project report submitted to AU Visakhapatnam, in partial fulfillment
for the award of the degree of

Submitted by
B.KISHORE
Regd. No: 116232602072
Under the guidance of
Y. UMA NOOKARATNAM, MBA

Assistant Professor
Department of Management Studies

(Affiliated to ANDHRA UNIVERSITY, and approved by AICTE, Government of
INDIA)
P.M PALEM, MADHURAWADA, VISAKHAPATNAM – 530041
2016 – 2018
HOD SIGNATURE INTERNAL SIGNATURE EXTERANAL SIGNATURE

DEPARTMENT OF MANAGEMENT STUDIES
Instilling Knowledge
Initiating Wisdom
CERTIFICATE
This is to certify that the project report entitled “A STUDY ON MARKET
POTENTIAL ON INDIAN STOCK MARKET WITH REFERENCE TO KARVY ”,
submitted by B.KISHORE, Regd. No. 116232602072, Department of
Management Studies, SRINIVASA INSTITUTE OF MANAGEMENT STUDIES,
VISAKHAPATNAM, is a record of bonafide work carried out by him under my
guidance during the period 1st May, 2016 – 1st July, 2016.
Ms RAJYALAKSHMI, MBA., Ms Y UMA NOOKRATNAM, MBA

Head Assistant Professor
Dept. of Management Studies Dept. of Management Studies
Srinivasa Institute Of Management Studies, Srinivasa Institute Of Management
Madhurawada, Visakhapatnam Studies, Madhurawada,Visakhapatnam
Place: Visakhapatnam
Date :
DECLARATION
I hereby declare that the project work entitled “A STUDY ON MARKET
POTENTIAL ON INDIAN STOCK MARKET WITH REFERENCE TO KARVY”,
submitted in the Department of Management Studies, SRINIVASA
INSTITUTE OF MANAGEMENT STUDIES, VISAKHAPATNAM, for the award
of Master of Business Administration is an original work carried out by me
under the supervision of Y. UMA NOOKARATNAM, Assistant Professor,
Department of Management studies. This work has not been submitted
previously to any other University or Institution for the award of any
degree/diploma.
Place: Visakhapatnam B.KISHORE

Date : (Regd. No: 116232602072 )
ACKNOWLEGEMENT
Every successful task would be incomplete without mentioning people who are behind the
success. At the outset, I thank God almighty for enabling me to complete my project.
I hereby express my sincere thanks to Dr.S.MADHAVI LATHA, Director, Srinivasa Institute Of

Management Studies, Madhurawada, Visakhapatnam, whose understanding and cooperation
made it possible for me to complete my project.
With my immense pleasure and deep sense of gratitude, I wish to express indebtness and
grateful thanks to, Ms RAJYALAKSHMI Head, Department of Management Studies,
Srinivasa Institute Of Management Studies, Madhurawada, Visakhapatnam, my project guide
for her valuable comments and criticisms which highly helped me to understand the project.
With great pleasure I acknowledge my deep sense of gratitude to my project guide Y. UMA
NOOKARATNAM, Assistant professor, SRINIVASA INSTITUTE OF
MANAGEMENT STUDIES, VISAKHAPATNAM , Visakhapatnam, for his support.
I am extremely thankful to Mr.P.NAGIREDDY, for giving me permission to do the project

work in their organization, and for their guidance and support extended by him for successful
completion of my project.
Above all, I feel highly grateful to my family for their help, encouragement, patience and
tolerance throughout my project work.
Finally, I thank all my friends who directly indirectly helped me a lot during the course and my
project.
B.KISHORE
(Regd. No: 116232602072 )
CONTENTS
Pages No:
CHAPTER-1
 INTRODUCTION
 NEED FOR THE STUDY
 OBJECTIVES OF THE STUDY
 RESEARCH METHODOLOGY
 LIMITATIONS
CHAPTER-2
 INDUSTRY PROFILE
 COMPANY PROFILE
CHAPTER-3
 THEORITICAL FRAMEWORK OF THE STUDY
CHAPTER-4
 DATA ANALYSIS AND INTERPRETATION
CHAPTER-5
 SUMMARY AND FINDINGS

 SUGGESTIONS
 CONCLUSION
BIBLIOGRAPHY
QUESTIONNAIRE
DECLARATION
I hereby declare that the project work entitled

“A STUDY ON MARKET POTENTIAL IN INDIAN STOCK
MARKETS” with special reference to (“Karvy Stock Broking ltd”) is
being submitted by me to the Department of Commerce and
Management Studies. ANDHRA UNIVERSITY, Visakhapatnam in
Partial fulfillment for the Award of the Degree of Master of Business
Administration is entirely based on my own study and efforts.
It has not been submitted to any other University for the Award of any
Degree or Diploma.
Place: VISAKHAPATNAM (B.KISHORE)
Date:
ACKNOWLEDGEMENT
I wish to express my deep gratitude to the management of

“Karvy Stock Broking ltd” for giving me the opportunity to do the
project on “A STUDY ON MARKET POTENTIAL IN INDIAN
STOCK MARKETS” for the partial fulfillment of Master of Business
Administration.
I express my deep gratitude to my guide
Prof. M.MADHUSUDHANA RAO, (PhD) Head of the Department,

Department of Commerce and Management Studies, ANDHRA
UNIVERSITY. For rendering us guidance and valuable advice always.
He has been a perennial source of inspiration and motivation right from
the inception to the completion of project.
I sincerely thank all the staff members of the department for

giving us their heartfelt support in all stages of the project work and
completion of this project.
And finally I would like to thank my parents and friends whose

unremarkable encouragement had helped me throughout my educational
endeavor and this project work.
(B.PRADEEP)
TABLE OF CONTENTS
CHAPTER TOPIC
1 RESEARCH PROFILE
INTRODUCTION TO STOCK MARKET
NEED,SCOPE AND OBJECTIVES OF THE STUDY
SIGNIFICANCE OF THE STUDY
RESEARCH METHODOLOGY
2 INDUSTRY AND COMPANY PROFILE
INDUSTRY PROFILE
COMPANY PROFILE
a. INTRODUCTION TO KARVY FINANCIAL SERVICES
b. AWARDS & ACCOLADES
c. ABOUT KARVY STOCK BROKING LTD
d. SERVICES OFFERED BY KARVY GROUP
3 THEORETICAL BACKGROUND
MARKET POTENTIAL
TOTAL MARKET POTENTIAL
MAJOR STOCK EXCHANGES IN INDIA
OVERVIEW OF THE REGULATORY FRAMEWORK OF THE

CAPITAL MARKET IN INDIA
TRADING WITH STOCK MARKET
PARAMETERS OF INVESTMENT
4 DATA ANALYSIS AND INTREPRETATION

5 FINDINGS OF THE STUDY
6 SUGGESTIONS AND RECOMMENDATIONS

1. SUGGESTIONS
2 RECOMMENDATIONS
7 CONCLUSION
8 BIBLIOGRAPHY
QUESTIONNAIRE
CHAPTER: 1
RESEARCH PROFILE
CHAPTER 1
1. INTRODUCTION TO INDIAN STOCK MARKETS

India can boast of being one of the oldest stock markets in Asia. Its history dates back
to nearly 200 years ago. The earliest records of security dealings in India are meager and
obscure. The East India Company was the dominant institution in those days and business in its
loan securities used to be transacted towards the close of the eighteenth century.
By 1830’s business on corporate stocks and shares in Bank and cotton presses took
place in Bombay. Though the trading list was broader in 1839 there were only half a dozen
brokers recognized by banks and merchants during 1840 and 1850. The 1850’s witnessed a rapid
development of commercial enterprise and brokerage business attracted many men into field and
by 1860 the number of brokers increased into 60. In 1860-61 the American Civil War broke out
and cotton supply from United States to Europe was stopped thus the ‘Share Mania’ in India
began. The number of brokers increased to about 200 to 250.
At the end of the American Civil War, the brokers who thrived out of civil War in
1874, found a place in a street (now appropriately called as Dalal Street) where they would
conveniently assemble and transact business . In 1887, they formally established in Bombay, the
Native Share and Stock Brokers Association, which is alternatively known as “The Stock
Exchange”. In 1895, the Stock Exchange acquired a premise in the same street and it was
Inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated.
The Indian stock market has been assigned an important place in financing the Indian
corporate sector. The principal functions of the stock markets are
 Enabling mobilizing resources for investment and monitoring
 Providing liquidity for the investors and monitoring
 Disciplining company management.
2. NEED FOR THE STUDY
The need of the study was to fill the gap that was identified in the previous researchers. The
researchers conducted earlier lay emphasis on the working of Indian Stock Market. Considering
the ample importance of this aspect, the present study was conducted to know the Indian Stock
Market & various options available in the stock market to invest & study the behavior of
investors and determine their awareness level regarding various investment avenues in stock
market and thereby to study the market potential in Indian Stock Markets.
Stock market is an important part of the economy of a country. To issue shares for the investors
to invest in the stock a company need to get a listed. To a stock exchange and though the primary
market of the stock exchange they can issue the shares and get the funds business requirement .
OBJECTIVES OF THE STUDY
The study has been undertaken in order to achieve the following objectives.
 To take an overview of the Indian Stock Market and encapsulate the various investments
avenues available.
 To know various options available in the Capital Market to invest.
 To know investor’s perception regarding investment in stock market.
 To study the investment behavior of investors and the factors that affects their investment
decision.
 To study the problems of investors and the reasons for not investing in financing
instruments.
 To know the satisfaction level of investors regarding return of different investment
avenues.
 To study the market in the Indian Stock markets.

4. RESEARCH METHODOLOGY OF THE STUDY
The study was under taken in the trading floor of Karvy. To make the report more authentic and
valid, the collections of the data should be through reliable sources and the approach is very
important. The Information regarding the market potential is collected from both primary as
well as secondary sources of data.
SAMPLING DESIGN:
Universe: The Universe is most commonly defined as everything that physically exists: the
entirety of space and time, all forms of matter, energy and momentum and the physical laws and
constants that govern them.
Theoretical universe: It included investors make investment in all over world.
Accessible Universe: It included investors make investment in Indian Stock market.
Sampling Unit: The target population must be defined that has to be sampled. The sampling
unit of research included investors investing at Karvy residing in Visakhapatnam city.
Sample size: This refers to number of respondents to be selected from the universe to
constitute a sample. The sample size of 100 investors was taken.
Sampling Technique: Convenience Sampling was used to select the sample convenient
sampling is a non probability sampling technique that attempts to obtain a sample of convenient
elements. In case of convenience sampling the selection of sample depends upon the discretion
of the interviewer. In this project Questionnaire method was used for the collecting the data.
With the help of this method of collecting data, a sample survey was conducted.
DATA COLLECTION AND ANALYSIS
Data Collection
Information has been collected from both primary and secondary data.
Primary data
 Watching the online trading live.

 Collecting information from the head of each department and from the staff working in
those departments.
 Data collection through direct personal interviews.
Secondary data
 Collecting the data from the website of NSE.

 Referring the topics in textbooks and journals relating to stock exchange operations.
 Collecting information through internet and also from Karvy Stock Broking Limited.
Tools of presentation & analysis:

To analyze the data obtained with the help of questionnaire, following tools were used
1. Likert scale: these consist of a number of statements which express either a favorable or
unfavorable attitude towards the given object to which the respondents are asked to react.
The respondent responds to in terms of several degrees of satisfaction or dissatisfaction.
2. Percentage and Pie Charts: These tools were used for analysis of data
LIMITATION OF THE STUDY
As the subject chosen comparatively new one, the study suffers from certain limitations.
1. Stock Exchange is an ocean and study is an attempt to understand which a drop in the ocean.
The activities in stock exchange and derivatives market are vast and to understand all the
activities is a difficult task, as there are only few persons who can provide information.
2. To know the entire activities of stock exchange is very difficult as it takes

a long period to understand.
3. Though the system, people and time were there, some information regarding certain topics in
stock trading was not collected due to non availability of time to the key persons from their busy
schedule.
4. Because of the comprehensive nature of some information is not disclosed though sources of
information are available
CHAPTER 2
INDUSTRY &
COMPANY PROFILE
CHAPTER 2
INDUSTRY PROFILE
STOCK EXCHANGES IN INDIA
At the end of the June 1989, there were 18 recognized stock exchanges in India.
Among the 18 stock exchanges, the first organized stock exchange set up at Bombay in 1857 is
distinguished not only by its size but also it has been recognized permanently, while the
recognition for other markets is renewed every 5 years. Stock markets are organized either as
voluntary, non-profit making associations (Bombay, Ahmadabad, Indore) or public limited
companies (Calcutta, Delhi, Bangalore) or company limited by guarantee (Madras, Hyderabad).
In India, the growth of stock exchanges has been linked to the growth of corporate
sector. Though a number of stock exchanges were set up before independence but, there was no
All India legislation to regulate they’re working. Every stock exchange followed its own
methods of working .To rectify this situation; the SECURITY CONTRACTS (REGULATIONS)
ACT was passed in 1956.
In 1965, 22 separate provincial stock exchanges were merged into 3 regional stock
exchanges and in 1973 these, in turn, were combined to form the National Stock Exchange
(NSE) under the title of the stock exchange that has trading floors in many former provincial
center. At present, there are 26 stock exchanges in our country. The over-the counter exchange
of India began its operations in 1992. Since 1995, trading in securities is screen based (on-line)
BOMBAY STOCK EXCHANGE (BSE):
Bombay stock exchange is the first organized stock exchange set up at Bombay in 1857.
It is the premier or apex stock exchange in India as it is distinguished not only by its size but also
it has been recognized permanently while recognition of other stock exchanges is renewed every
5 years. It is the oldest stock market.
Bombay Stock Exchange raised the threshold limit for listing to Rs.10 crores,
moved on to weekly settlement and quicker actions for each settlement. Settlement is through
the clearinghouse. 12 days carry forward is allowed on BSE. Index in BSE is ‘SENSEX’. BSE
membership fee in 1857 was just Rs1lakh and now it in about Rs 2crores.
NATIONAL STOCK EXCHANGE (NSE)
National Stock Exchange of India Ltd was started in 1992 with a paid-up equity
of Rs.25 crores. The government recognized it in the same year and NSE started its operations
in wholesale in Nov 1994.
NSE MISSION
NSE mission is setting the agenda for change in the securities markets in India.
The NSE was set-up with the main objectives of:
 establishing a nation-wide trading facility for equities, debt instruments and hybrids
 ensuring equal access to investors all over the country through an appropriate
communication network,
 providing a fair, efficient and transparent securities market to investors using electronic
trading systems,
 enabling shorter settlement cycles and book entry settlements systems, and
 Meeting the current international standards of securities markets.
NSE LOGO
The logo of the NSE symbolizes a single nationwide securities trading facility ensuring equal
and fair access to investors, trading members and issuers all over the country. The initials of the
Exchange viz., N, S and E have been etched on the logo and are distinctly visible. The logo
symbolizes use of state of the art information technology and satellite connectivity to bring about
the change within the securities industry. The logo symbolizes vibrancy and unleashing of
creative energy to constantly bring about change through innovation.
NSE MILESTONE
November 1992 Incorporation
April 1993 Recognition as a stock exchange
May 1993 Formulation of business plan
June 1994 Wholesale Debt Market segment goes live
November1994 Capital Market (Equities) segment goes live
March 1995 Establishment of Investor Grievance Cell
April 1995 Establishment of NSCCL, the first Clearing Corporation
June 1995 Introduction of centralized insurance cover for all trading members
July 1995 Establishment of Investor Protection Fund
October 1995 Became largest stock exchange in the country
April 1996 Commencement of clearing and settlement by NSCCL

April 1996 Launch of S&P CNX Nifty
June 1996 Establishment of Settlement Guarantee Fund
Setting up of National Securities Depository Limited, first depository in

November 1996
India, co-promoted by NSE
November 1996 Best IT Usage award by Computer Society of India
December 1996 Commencement of trading/settlement in dematerialized securities
December 1996 Dataquest award for Top IT User
December 1996 Launch of CNX Nifty Junior
February 1997 Regional clearing facility goes live
November 1997 Best IT Usage award by Computer Society of India
Promotion of joint venture, India Index Services & Products Limited

May 1998
(IISL)
May 1998 Launch of NSE Web-site: www.nse.co.in
July 1998 Launch of NSE Certification Programmer in Financial Market
August 1998 CYBER CORPORATE OF THE YEAR 1998 award
February 1999 Launch of Automated Lending and Borrowing Mechanism
April 1999 CHIP Web Award by CHIP magazine
October 1999 Setting up of NSE.IT
January 2000 Launch of NSE Research Initiative
February 2000 Commencement of Internet Trading
June 2000 Commencement of Derivatives Trading (Index Futures)

September2000 Launch of 'Zero Coupon Yield Curve'
Launch of Broker Plaza by Dotex International, a joint venture between

November 2000
NSE.IT Ltd. and I-flex Solutions Ltd.
December 2000 Commencement of WAP trading
June 2001 Commencement of trading in Index Options
July 2001 Commencement of trading in Options on Individual Securities
November 2001 Commencement of trading in Futures on Individual Securities
December 2001 Launch of NSE VaR for Government Securities
January 2002 Launch of Exchange Traded Funds (ETFs)
NSE wins the Wharton-Infosys Business Transformation Award in the

May 2002
Organization-wide Transformation category
October 2002 Launch of NSE Government Securities Index
January 2003 Commencement of trading in Retail Debt Market
June 2003 Launch of Interest Rate Futures
August 2003 Launch of Futures & options in CNXIT Index
June 2004 Launch of STP Interoperability
August 2004 Launch of NSE electronic interface for listed companies
March 2005 ‘India Innovation Award’ by EMPI Business School, New Delhi
June 2005 Launch of Futures & options in BANK Nifty Index
December 2006 'Derivative Exchange of the Year', by Asia Risk magazine

January 2007 Launch of NSE – CNBC TV 18 media center
March 2007 NSE, CRISIL announce launch of IndiaBondWatch.com
June 2007 NSE launches derivatives on Nifty Junior & CNX 100
October 2007 NSE launches derivatives on Nifty Midcap 50
January 2008 Introduction of Mini Nifty derivative contracts on 1st January 2008
March 2008 Introduction of long term option contracts on S&P CNX Nifty Index
Launch of NCFM - Derivatives Market (Dealers) Module Test in Hindi

June2008
language
September2008 Launch of FEDAI-NSE Currency Futures (Basic) Module
Jan2009 Launch of Mutual Funds : A Beginners Module
Launch of NCFM - Capital Market (Dealers) Module Test in Gujarati

Feb2009
and Hindi languages
Feb2009 Launch of Shariah BeEs on Feb 4, 2009
Mar2009 Launch of "Options Trading Strategies Module"
February 2010 Launch of Currency Futures on additional currency pairs
March 2010 NSE- CME Group & NSE - SGX product cross listing agreement
April 2010 Financial Derivative Exchange of the Year Award' by Asian Banker
July 2010 Commencement of trading of S&P CNX Nifty Futures on CME
October 2010 Introduction of Call auction in Pre-open session
November 2010 Launch of mobile trading for all investors
December 2010 NSCCL Rated “CCR AAA” for third consecutive year
NSE Technology
Across the globe, developments in information, communication and network

technologies have created paradigm shifts in the securities market operations. Technology has
enabled organizations to build new sources of competitive advantage, bring about innovations in
products and services, and to provide for new business opportunities. Stock exchanges all over
the world have realized the potential of IT and have moved over to electronic trading systems,
which are cheaper, have wider reach and provide a better mechanism for trade and post trade
execution.
NSE believes that technology will continue to provide the necessary impetus for the
organization to retain its competitive edge and ensure timeliness and satisfaction in customer
service. In recognition of the fact that technology will continue to redefine the shape of the
securities industry, NSE stresses on innovation and sustained investment in technology to remain
ahead of competition. NSE IT set-up is the largest by any company in India. It uses satellite
communication technology to energies participation from around 400 cities spread all over the
country. In the recent past, capacity enhancement measures were taken up in regard to the
trading systems so as to effectively meet the requirements of increased users and associated
trading loads. With up gradation of trading hardware, NSE can handle up to 1 million trades per
day.
CIRCUIT BREAKERS
The Exchange has implemented index-based market-wide circuit breakers in compulsory rolling
settlement with effect from July 02, 2001
INDEX-BASED MARKET-WIDE CIRCUIT BREAKERS

The S & P CNX The index-based market-wide circuit breaker system applies at 3 stages
of the index movement, either way viz. at 10%, 15% and 20%. These circuit breakers when
triggered bring about a coordinated trading halt in all equity and equity derivative markets
nationwide. The market-wide circuit breakers are triggered by movement of either the BSE
Senses or the NSE S&P CNX Nifty, whichever is breached earlier.
 In case of a 10% movement of either of these indices, there would be a one-hour market
halt if the movement takes place before 1:00 p.m. In case the movement takes place at or
after 1:00 p.m. but before 2:30 p.m. there would be trading halt for ½ hour. In case
movement takes place at or after 2:30 p.m. there will be no trading halt at the 10% level
and market shall continue trading.
 In case of a 15% movement of either index, there shall be a two-hour halt if the
movement takes place before 1 p.m. If the 15% trigger is reached on or after 1:00p.m.
But before 2:00 p.m., there shall be a one-hour halt. If the 15% trigger is reached on or
after 2:00 p.m. the trading shall halt for remainder of the day.
 In case of a 20% movement of the index, trading shall be halted for the remainder of the
day.
S&PCNX NIFTY:
NIFTY is based upon solid economic research it the new world of financial product on
the index like index futures, index options and index funds. A trillion calculations were expanded
to evolve the rules inside the S&P CNX Nifty index.
The result of this work is remarkably simple:
 The correct size is to use is 50.

 Stocks considered for the S&P CNX Nifty must be liquid by the 'Impact cost criterion.
 The largest 50 stocks that meet the criterion go into the index.
The nifty is uniquely equipped as an index for the index market owing
 Low market impact cost

 High edging effectiveness
COMPANY PROFILE
ABOUT KARVY
One fateful evening in the summer of 1982, 5 young men who worked for a renowned chartered
accountancy firm decided that it was time they struck out on their own to create an enterprise
that would someday become an iconic name in the financial services space.
They came from ordinary middle class backgrounds. They had two assets; one was their
education and the other an unquenchable desire to succeed. They had a lot stacked against them:
the environment was not conducive to entrepreneurship; technology was not fully supportive,
financial markets were largely unregulated; they were based out of Hyderabad while most key
players in the financial world were in Mumbai or other metros and the wolf was at the door. The
odds seemed insurmountable.
These remarkable young men’s “Never say die” approach held them in good stead over the
years. They stuck to their dreams, burnt the midnight oil, embraced technology and made it work
for them and through sheer dint of determination, eventually overcame all obstacles.
First came the registry business, followed by broking, and the rest became a lesson for every
young individual to emulate.
PROMOTERS & MANAGEMENT TEAM
Mr. C. Parthasarathy
Chairman & Managing Director
Mr. C. Parthasarathy is the Chairman and Managing Director of the diversified financial services
Karvy group. C Parthasarathy (CP as he is better known in the Industry), has the uncanny knack
of staying ahead of the curve and the foresight to spot opportunities that seem invisible on the
horizon for the others. Karvy’s entire history is a case study of turning adversity into
opportunity. CP is a chartered accountant by qualification, whose entrepreneurial energy drove
him to co-found Karvy in 1983 with a less-than-modest capital of Rs 150,000.
Over the years CP’s vision and leadership skills have helped the group navigate through the
turbulent times with a strong sense of purpose and clarity of thought.
CP is one of the pioneers of financial inclusion. Under his leadership Karvy has won numerous
industry awards and accolades. He also is an independent Director in many listed companies.
Mr. M. Yugandhar
Managing Director
Mr. M Yugandhar, Managing Director is a founder member of the KARVY Group. He is a

Fellow Member of the Institute of Chartered Accountants of India and has varied experience in
the field of financial services spanning over 30 odd years.
Yugandhar has helped position and build a strong brand for the group in the registry and other
financial services businesses. The registry business of Karvy is one of its flagship businesses and
with the collaboration with Computershare has grown to become the largest registrar in India for
over two decades. Yugandhar has played a key role in building strong relationships with public
sector banks and other PSUs which have helped Karvy win some important mandates from some
of India’s renowned companies.
Karvy under his guidance has helped create the equity cult and substantially built retail investor
wealth. He is an Independent Director on the board of several reputed companies.
Mr. M. S. Ramakrishna
Director
Mr. M S Ramakrishna, Director, founder member of KARVY GROUP, he is the orchestrator of

technology initiatives such as the call center in the service of the customer.
Mr. Ramakrishna was a member of the Hyderabad Stock Exchange and has more than 30 years
of experience in the financial services arena. He has helped KARVY diversify into the field of
medical transcription leveraging on the company's core competency of transaction processing.
He is an Independent Director on the board of several reputed companies.
MANAGEMENT TEAM
Mr. V.Mahesh
Managing Director – Karvy Data Management
Mr. V Mahesh, is the Managing Director of Karvy Data Management and has work experience
spanning over 2 decades with in depth exposure to operations on most financial services
businesses. Commencing his professional stint with the Registry business where he has to his
credit managing over 300 IPOs and other forms of offerings, he was amongst the first few to
work closely on the Book Building process initiated by SEBI in 1995. After initially working
with MCS as an Assistant Vice President, he moved to Karvy. He was also responsible to
initiate the process of setting up the Depository participant business in Karvy and was
responsible for both the operations and the marketing of the business. He has been nominated by
the NSDL to various committees which addressed key changes to the overall processes and
policies for the Demat business.
Nurturing the passion for understanding and interpreting technology and processes, he was
responsible to create and set up the centralized broking platform, centralized back office
operations for all financial products and creating a network of over 500 branches covering over
300 locations for Karvy. He is also instrumental in creating and launching the online platform of
Karvy Stock Broking Limited.
He is a Post Graduate in Commerce from University of Madras (M.Com). And also completed
Post Graduate Diploma in Computer Applications.
Mr. V. Ganesh
CEO – Karvy Computershare
Mr. V Ganesh is a Chartered and Cost Accountant by profession and has over 2.5 decades of
experience in the financial services space and is part of Karvy Group’s leadership team. Before
joining KARVY, he was associated with ITC’s risk management and financial audit services
department. Earlier he was associated with Proctor and Gamble and was responsible for product
pricing and financial support functions for P&G’s soaps and health care businesses.
He was instrumental in setting up the Mutual Fund registry business for Karvy. At KARVY, for
over 2 decades, Ganesh has been instrumental in building a strong techno-commercial base with
emphasis on establishing a pan India branch network, back office processing, call center, web
initiatives, online trading, B2B interfaces etc., in the transfer agency and BPO businesses.
Mr. Amit Saxena
CEO & Whole time Director - Karvy Finance
Amit Saxena is the CEO & Whole time Director, Karvy Financial Services Ltd. He started Karvy
Finance, a NBFC in the challenging times of 2009 and has successfully built the company in a
short period as a leader in Micro & Small Business Loan Segment with a multi product suite, a
differentiated and direct neighborhood business loan lending model and a pan India branch
network.
Prior to establishing Karvy Finance, Amit Saxena worked with Citigroup Consumer Finance
across leadership roles in Auto Finance, Mortgages and Consumer Finance. Amit Saxena with
his keen knowledge of MSME & Consumer Finance industry since its inception in mid-nineties
in India has been instrumental in establishing new geographies, new products & start up ventures
across India throughout his career. Conceptualization, innovation and execution being the key
elements defining his success in every venture.
Mr. Amit Saxena is an alumnus of Harvard Business School, IIM Lucknow and BITS-Pilani. He
is an avid speaker at various forums like Wharton India Economic Forum, Harvard India
Conference & ASSOCHAM MSME Mudra Bank Summit championing the cause and
highlighting the vast potential of MSME segment and Indian entrepreneurs.
Mr. Sushil Sinha
Whole time Director - Karvy Comtrade
Mr. Sushil Sinha, the Country Head of Karvy Comtrade Ltd, has successfully made Karvy
Comtrade a force to reckon with in the marketplace. With over 10 years of expertise in the
broking sector, he is a well-known face today in the electronic and print media. Under his aegis,
the company has won numerous honours and awards nationwide, including the UTV Bloomberg
Leadership Award 2011 and India’s Best Market Analyst Award—for two consecutive years—
by Zee Business.
Having joined Karvy Comtrade in December 2005 as Senior Manager (Business Development),
he has steadily climbed up the organizational ladder to head the business now. Before joining
KCTL, he worked in Geojit Financial Securities for two years. Prior to that, he had worked with
the Agriculture department in the Government of Jharkhand under various capacities for four
years.
A science graduate, Mr. Sinha has completed two MBAs, one majoring in Personnel
Management & Industrial Relations from Patna University and the other in Agri Business
Management from IIPM, Bangalore, a Ministry of Commerce, Government of India institution.
Mr. P. B. Ramapriyan
Vice President & Head - Financial Product Distribution
Mr. Ramapriyan is working with Karvy for over 2 decades; He has strength of sorts in the
distribution of financial products including Equity, Bonds, Fixed Deposits and Auto Finance. He
has successfully marketed several financial products for large number of corporate of various
sizes. He is also responsible for managing the Pan India Network of brokers and sub-brokers. He
has been instrumental in Karvy’s success in distribution of debt products.
Mr. Rajiv R. Singh
Vice President & Business Head - Karvy Stock Broking Limited
Mr. Rajiv R. Singh is the Vice President & Business Head of the Equity Broking business. He
has been associated with Karvy for more than a decade. He joined Karvy in 2001 and moved up
the corporate ladder with his sheer dedication, commitment and hard work.
Rajiv, with an enormous experience in finance industry leads the responsibility of all aspects of
Karvy’s equity broking business which includes strategy, revenue generation, business
development and overall customer satisfaction. Rajiv is widely regarded as a results-driven
leader who plays a key role in building the stock broking business of KSBL and make it one of
the largest stock broking houses in the country. Rajiv also plays a key role in identifying skills
and motivating staff in providing outstanding client service.
Rajiv is a Certified Management Accountant–CMA.

Mr. J. Ramaswamy
Group Head - Corporate Affairs
Mr. Ramaswamy, the Group Head for Corporate Affairs, is the official spokesperson for the
Karvy Group. Mr. Ramaswamy has more than 25 years of experience in various spheres of the
financial services industry, of which 10 years has been in the Legal and Secretarial division of
Reliance, handling various public issues, mergers, monitoring performance of various
departments, liaising with regulatory bodies and outside agencies (viz., the stock exchange,
SEBI, DCA and others), and coordinating all the board meetings.
The Corporate Affairs Division is involved in integration and strategic planning of all the
business divisions of Karvy. Mr. Ramaswamy’s job responsibility encompasses monitoring the
performance of all divisions through regular reviews, initiating and implementing new business
initiatives, corporate communication and media relations, acting as official spokesperson for the
entire Group, conceptualizing various policies and procedures to improve the internal work
environment, and working on a parallel platform with the HR department to develop models for
raising productivity and cost-effectiveness. He oversees the international business of Karvy
Global Services.
Mr. Deepak Gupta
Group Head - HR
Mr. Deepak Gupta brings with him over 20 years of experience in HR, spanning financial
services, ITes and manufacturing. Prior to joining Karvy, he was Chief People Officer, Human
Resources, with Bajaj Finance Limited, a Rahul Bajaj Group Company, based at Pune. He has
also had a successful career with a few prominent corporate, including SREI, Enam, CRISIL,
CEAT Financial Services and Reliance Industries.
Deepak holds a Master’s degree in Human Resources Development from Jamnalal Bajaj Institute
of Management and a diploma in Business Management and Industrial Relations.
Mr. G. Krishna Hari
Group Head - Finance
Mr. G. Krishna Hari holds a Bachelors degree in Commerce and is associate member of the
Institute of Chartered Accountants of India (ICAI). He has over 27 years of experience in the
areas of finance and accounts functions encompassing fund raising, financial reporting,
management accounting, working capital management, taxation, budgeting and forecasting and
financial due diligence reviews for mergers & acquisitions and investment proposals.
He has been associated with the Karvy Group for the past 15 years and is currently designated as
the Vice President- Finance & Accounts at Karvy Stock Broking Limited. Prior to joining Karvy,
he was the head of finance & accounts division in Asia Pacific Investment Trust Limited,
Hyderabad (Formerly Nagarjuna Investment Trust Limited) an NBFC Company.
.
WHO WE ARE
The Karvy Group is today a well diversified conglomerate. Its businesses straddle the entire
financial services spectrum as well as data processing and managing segments. Since most of its
financial services were retail focused, the need to build scale and skill in the transaction
processing domain became imperative. Also during stressed environment in the financial
services segment, the non financial businesses bring in a lot of stability to the group’s businesses
Karvy’s financial services business is ranked among the top-5 in the country across its business
segments. The Group services over 70 million individual investors in various capacities, and
provides investor services to over 600 corporate houses, comprising the best of Corporate India.
The Group offers stock broking, depository participant, distribution of financial products
(including mutual funds, bonds and fixed deposits), commodities broking, personal finance
advisory services, merchant banking & corporate finance, wealth management, NBFC (loans to
individuals, micro and small businesses), Data management, Forex & currencies, Registrar &
Transfer agents, Data Analytics, Market Research among others.
Karvy prides itself on remaining customer centric as all times through a combination of leading
edge technology, Professional management and a wide network of offices across India.
Karvy is committed to its quest as an Equal Opportunity Employer and believes in the rights for
differently-abled persons. We have over 12% employees who are challenged in some form in
one of our prominent businesses.
WHY KARVY
Karvy’s business entities address a heterogeneous swathe of population from the super rich, to
the nouveau riche, the ubiquitous middle class, the lower classes (the SEC E3 according to the
new Social Economic Classification), urban and the rural folks. All of whom either make a living
through large business (corporate world), SMEs, professional services, traders, farmers, labour,
blue and white collar jobs and the government.
Another key feature of Karvy has been its ability to offer leading edge advice based on incisive
ideas that are strongly rooted in high quality research on every conceivable aspect of investment
be it equities, forex, commodities, bonds, fixed returns, debt instruments or any other investment
grade asset class.
The customer has always been at the centre of every Karvy initiative.
KARVY GROUP
The Karvy Group is a premier integrated financial services provider, ranked among the top-5 in
the country across its business segments. The Group services over 70 million individual investors
in various capacities, and provides investor services to over 600 corporate houses. Karvy Group
established its presence through a wide network of over 450 branches, (or 900 offices) covering
in excess of 400 cities and towns.
Karvy covers the entire spectrum of financial services, viz stock broking, depository participant,
distribution of financial products (including mutual funds, bonds and fixed deposits),
commodities broking, personal finance advisory services, merchant banking & corporate finance,
wealth management, NBFC, among others.
The Group is professionally managed and ranks among the best in technology, operations and
research across the financial industry. The Karvy Group has evolved over the last three decades
and today it assumes many avatars. Broadly the group pursues two lines of businesses and can be
graphically represented as follows:
OUR COMPANIES
Karvy Stock Broking LTD
Equity Broking, Depository Participant, Distribution of Financial Products (Mutual Funds, FD
and Bonds), Wealth Management Services, Currency Derivatives, Portfolio Management
Services
Karvy Comtrade LTD
Commodities Broking
Karvy Capital LTD (Formerly Karvy Capital Private LTD)
NBFC & Portfolio Manager
Karvy Investment Advisory Services LTD (Formerly known as Karvy Insurance Broking
LTD)
Investment Advisory Services
Karvy Holdings LTD
Core Investment Company
Karvy Middle East LLC
Wealth Management Products for NRI's
Karvy Realty (India) LTD
Realty Services
Karvy Financial Services LTD
Non Banking Financial Services
Karvy Insurance Repository LTD
Insurance Repository services
Karvy Forex & Currencies Private LTD
Currency and forex services
Karvy Consultants LTD
Consultancy and Advisory Services, Publications
Karvy Computershare Private LTD
Registrar and Share Transfer agent
Karvy Computershare W.L.L (Formerly known as Fakhro Karvy Computershare W.L.L)
Agent for Custody & Registration of Securities, Registered Administrator
Karvy Data Management Services LTD
Data Management Services
Karvy Investor Services LTD
Merchant Banking and Corporate Finance
Karvy Insights LTD
Market Research
Karvy Analytics LTD
Analytics
Karvy Solar Power LTD
Power Generation
Karvy Global Services LTD
Business Process Outsourcing
Karvy Global Services Inc, USA
Business Process Outsourcing
AWARDS & ACCOLADES
Mr. Rajat Parthasarathy, Director, Karvy Group and Mr. Rajiv Ranjan Singh, Vice-President &
Business Head - Stock Broking receiving awards from India’s premier stock exchange BSE - the
SKOCH – BSE Order of Merit award and the SKOCH – BSE Aspiring Nation award - in
recognition of its efforts to educate, empower and help create an enlightened corps of financial
market investors.
Mr. Sudhendoo Gandhi, GM, KSBL, receiving the "NSDL Star Performer Award 2014” for
Highest Asset Value
Mr. Sushil Sinha, Business Head, KCTL & Mr. Suresh Raval, General Manager, KCTL
receiving the ‘Broker with Best Corporate Desk for Commodity Broking’ award from Hon’ble
Finance Minister then - Sri Pranab Mukerjee at the Bloomberg UTV Financial Leadership
Awards 2011
Mr. C Parthasarathy, Chairman, Karvy Group, receiving the ‘Largest E-Broking House in
India’ award at the Dun & Bradstreet – BSE Equity Broking Awards 2010
Karvy Stock Broking Limited
2014
Won the prestigious "NSDL Star Performer Award 2014 for Highest Asset Value".
Organized by the National Securities Depository, the NSDL Star Performers Awards recognize
the best performers in the securities and depositories space. The award ceremony was organized
on Saturday, December 20, 2014, at Taj Coromadel, Chennai. Karvy has won this award
consecutively for last two years.
2010
"Largest E-Broking House in India" at BSE Equity Broking Awards 2010 by Dun &
Bradstreet held in ITC Grand Maratha, Mumbai. This award is based on the study carried out by
the world’s leading provider of business information, knowledge and insight, Dun &
Bradstreet in association with the oldest stock exchange in India, the Bombay Stock
Exchange.
The BSE-D&B Equity Broking Awards recognizes the brokerage firms based on the number of
online accounts, volume of online trade, and service delivery of their online trading platform.
Karvy Stock Broking Limited has won this prestigious award for its state of the art, in-house
developed KarvyOnline, a comprehensive online investment platform that enables investors to
invest, anytime from anywhere.
2007
Bagged ace award by receiving the coveted Annual Award for 2006 for "Best CEO, Initiating
HR Practices”, by, the Uttar Pradesh Chapter of National Institute of Personnel Management
(NIPM). The Award has been conferred to Mr. C Parthasarathy, CMD, Karvy Group, for his
contribution to HR practices in Lucknow, organized by UP chapter of NIPM.
2007
"Amity Corporate Excellence" award at the 9th International Business Summit and Research
Conference-INBUSH (International Business Horizon) which was held at a glittering function in
Noida. This award was conferred by Amity International Business School, Noida.
2006
ISTD – "Vivekananda National Award" for Excellence in HRD & Training
2004
"Best Depository Participant in the country" award
Karvy Comtrade Limited
2014
Won the prestigious ZEE Business Award for the "Best Agri. Analyst" 2014 in the fifth
edition of India’s Best Market Analyst Awards on Saturday, 13th Dec. 2014 at The LaLit in
Mumbai.
2011
Awarded the "Broker with Best Corporate Desk for Commodity Broking" at the
prestigious Bloomberg UTV Financial Leadership Awards 2011 held in Hotel Taj Landsend,
Mumbai. Hon’ble Finance Minister of India then, Shri. Pranab Mukerjee was the Chief Guest.
The awards have been decided by eminent jury consisting of reputed economists, management &
financial consultants.
Bloomberg UTV Financial Leadership Awards have been instituted to acknowledge the
contribution of the country’s financial champions for extraordinary work done in financial
sector. This award is a reflection of Karvy Comtrade - Corporate Desk’s unparalleled strengths
in providing unique risk management strategies and hedging calculators for Corporates. Karvy
Comtrade’s ability to handle large volumes of trade. efficiently with prompt, accurate and tailor-
made services by a talented pool of professionals ensures that Karvy remains relevant to client at
all times.
2011
Adjudged as the "Best Analyst in Base Metal Category" at the prestigious "Best Market
Analysts Awards 2011" by Zee Business in association withNCDEX (National Commodity &
Derivatives Exchange Limited). The award ceremony was graced with the presence of eminent
dignitaries.
Zee Business Best Market Analyst Awards have been instituted to honour the contributions of
India’s leading financial experts in empowering the retail investors. The Nominations for the
Awards were invited from Commodities & Stock Broking companies and Fund houses and were
being judged on overall returns achieved for the Stocks, Commodities, Sectors and Companies,
the analysts tracked from April 2010 to December 2010.
ABOUT KARVY STOCK BROCKING LTD
Karvy Stock Broking Limited (KSBL) which is the broking arm of Karvy Group, a well
diversified conglomerate whose business encompasses the entire financial services spectrum
along with data processing and managing segments.
Karvy’s financial services business is ranked among the top-five in the country across its
business segments. The Group services over 70 million individual investors in various capacities
and provides investor services to more than 600 corporate houses, comprising the best of
Corporate India.
Karvy prides itself on being extremely customer centric at all times providing leading edge
technology combined with professional management and servicing through a wide network of
offices across India.
Karvy Stock Broking Limited (KSBL) is among the country’s leading financial services
organizations renowned for its quality of investment and advice. KSBL through its wide network
of offices across India offers customized investment solutions to corporate, institutions and
individual investors.
KSBL helps investors construct a portfolio by factoring in their risk profile and future financial
needs so that their investments achieve an optimal balance between risk and returns.
Our comprehensive trading account helps clients approach various investment avenues in an
integrated fashion, providing them the facility to transact with ease. We have a combined
account facility that caters to all investment opportunities such as trade in Equities, Derivatives,
Currency and also investing in IPOs, Mutual funds and NCDs.
KSBL was awarded BSE Order of Merit award and the SKOCH – BSE Aspiring Nation award in
recognition to its efforts to educate, empower and help create financial markets literacy among
investors. It has received the NSDL Star Performer Award 2014 for highest asset value
generated.
OUR ACCOLADES
 Winners of SKOCH-BSE Order of Merit award 2015

 Winners of SKOCH-BSE Aspiring Nation award 2015
 Won ‘NSDL Star Performer Award 2014 for Highest Asset Value’
 Won ‘Largest E-Broking House in India by Dun & Bradstreet 2010
 Won ‘Broker with Best corporate desk for commodity broking 2011’
 India’s no I registrar and securities transfer agent
 ISO 9002 Certified Operations by DNV
 Largest Independent Distributor
 Most of India’s 500 fortune companies are serviced by Karvy
 Every 20th trade in stock market is done on the Karvy platform
 Every 6th investor in India invests through Karvy
 Amongst top 10 stock brokers in India
 Amongst top 3 depository participants
 Amongst top 10 investment bankers
SERVICES OFFERED BY KARVY GROUP
The Karvy Group is a premier integrated financial services provider, ranked among the top-5 in
the country across its business segments. The Group services over 70 million individual investors
in various capacities, and provides investor services to over 600 corporate houses. Karvy Group
established its presence through a wide network of over 450 branches, (or 900 offices) covering
in excess of 400 cities and towns.
Karvy covers the entire spectrum of financial services, viz stock broking, depository participant,
distribution of financial products (including mutual funds, bonds and fixed deposits),
commodities broking, personal finance advisory services, merchant banking & corporate finance,
wealth management, NBFC, among others.
The Group is professionally managed and ranks among the best in technology, operations and
research across the financial industry. The Karvy Group has evolved over the last three decades
and today it assumes many avatars. Broadly the group pursues two lines of businesses and can be
graphically represented as follows:
Financial Services
 Equity Broking
 Depository Participant
 Wealth Management
 Commodities Broking
 Currency Derivatives
 Non-banking Financial Services
 Distribution of Financial Products
 Realty
 Registry services for Corporate
and Mutual funds
 Investment Banking
 Insurance Repository
 The Finapolis
 Forex & Currencies
Non-Financial Services
 Data Management Services
 International BPO
 Alternate Energy
 Data Analytics
 Market Research
FINANCIAL SERVICES
EQUITY BROKING SERVICES

Stock markets are considered unpredictable, but they reflect the mood of the economy. Over the
years, investment in equities is considered to be the best long-term wealth maximization option.
The gap between unpredictability and a safety anchor in the market is bridged by the in-depth
knowledge of market functioning and changing trends, planning with foresight and choosing
one’s options with care. From that perspective, our equity broking and advisory services are
beyond just a medium for buying and selling stocks and shares. Instead, we provide services
which are multi-dimensional and multi-focused in its scope.
Karvy can boast of the largest-owned network among financial-services companies in India. This
has ensured that wherever a potential customer is located, it is never too far from a Karvy office.
Given the wide network, there are a number of trading terminals that provide retail stock-broking
facilities. Our services have increasingly offered customer-oriented convenience which we
provide to a spectrum of investors—high net-worth or otherwise—with equal dedication and
competence.
We offer online trading on both key platforms—National Stock Exchange and Bombay Stock
Exchange. More importantly, we make trading safe to the maximum possible extent by
accounting for several risk factors and planning accordingly. We have created a very robust
trading platform that facilitates customers to trade online not only in equities, but also buy fixed
deposits, mutual funds, commodities, currencies and also participate in a public issue. Our online
platform enables customers to view their portfolio online and also access our various research
reports and views on stocks. It also provides them with a facility to communicate with our
research/advisory teams online.
We are assisted by our in-depth research, constant feedback and sound advisory capabilities..
Our highly skilled research team—comprising technical analysts and fundamental specialists—
secure result-oriented information on market trends, market analysis and market predictions.
This crucial information is provided as a constant feedback to our customers, through daily
reports delivered twice —the Morning moves, which predicts the market scenario for the day;
the Daily Wrap up, the final report for the day, where the market and the report itself is
reviewed.
To add to this repository of information, we publish a monthly magazine, The Finapolis, which
analyzes personal finance and offers share market tips and takes a close look at various
investment options and products available in the market. Moreover, our weekly e-
newsletter, Karvy Bazaar Baatein, keeps you informed on key trends in personal finance and
stock market trends. We cover a wide range of sectors and companies which are categorized as
large cap, mid cap and small cap. We also provide periodic macroeconomic reports. Above all,
we also offer special portfolio analysis packages and provide customized advisory services to
help you make the right financial moves to specifically suit your portfolio
DEPOSITORY PARTICIPANT SERVICES

The onset of the technology revolution in the financial-services industry saw the emergence of
KSBL as an electronic custodian registered with the National Securities Depository Ltd (NSDL)
and Central Securities Depository Ltd (CSDL) in 1998. We set standards enabling further
comfort to the investor by promoting paperless trading across the country, emerging as the top-3
depository participant in India, in terms of customer serviced.
Offering a wide trading platform with dual membership of NSDL and CDSL, KSBL is a
powerful medium for trading and settlement of dematerialized shares. We have established live
DPMs, internet access to Demat accounts, and an easier transaction process in order to offer
greater convenience to individuals and corporate investors. A professionally managed team and
the latest technological expertise have been allocated exclusively to our Demat division,
including technological enhancements like SPEED-e. This makes our response time quick and
our delivery impeccable. Moreover, a wide national network makes our efficiencies accessible to
all.
DISTRIBUTION OF FINANCIAL PRODUCTS

The paradigm shift from pure selling to knowledge-based selling drives the business today. With
our wide portfolio offerings, we occupy all segments in the retail financial services industry. A
highly qualified and dedicated team of professionals, drawn from the best of academic and
professional backgrounds, are committed to maintaining high levels of client service delivery.
This has propelled us to become one of the top distribution houses for equity and debt issues,
with an estimated market share of 15% in terms of applications and amount mobilized.
To further tap the immense growth potential in the capital markets, we enhanced the scope of our
retail arm, now providing planning and advisory services to the mass affluent. Here, we
understand customer needs and lifestyle in the context of current earnings and provide adequate
advisory services that will facilitate wealth creation in the long run. Both market-savvy and the
less knowledgeable investors find this service quite satisfactory. The edge that we have over our
competitors is the sheer depth of our portfolio of offerings and our professional expertise. The
investment planning for each customer is done with an unbiased attitude so that the service is
truly customized..
CURRENCY DERIVATIVES
Karvy Currency Derivatives Segment, a specialized group vertical within Karvy stock broking
limited, has been established in 2008 to cater to the growing needs of corporate houses to
manage currency exchange rate risk. With the changing dynamics and increasing volatility of
exchange rates across the globe, companies exposed to currency risk face the challenge of
maintaining continued profit margins. Currency Derivatives would be one of the best options to
manage any related exchange rate risk and be free from the worries of market uncertainties.
At Karvy Currency derivatives segment (CDS), we provide customized hedging strategies for
importers, exporters and companies with foreign exchange exposure. We offer forex advisory
and brokerage service for the Indian currency derivative market, and provide a robust and
reliable online trading platform. Currency Derivatives Segment - Karvy Stock Broking Limited
is an active member of the National Stock Exchange (NSE), MCX Stock Exchange (MCX-SX)
and Bombay Stock Exchange (BSE)..
WEALTH MANAGEMENT SERVICES

Karvy, with over 25 years’ expertise in the financial markets, is offering comprehensive wealth
management solutions for its customers through Karvy Private Wealth (KPW). Our wealth
managers provide direction to a client’s financial decisions, enabling him achieve his financial
and life goals. As a wealth manager, we collate the relevant financial information and life goals
of the client, assess his risk tolerance level, examine his current financial status, and identify a
strategy to fulfill his goals.
Wealth management is an all-encompassing service, providing comprehensive research-based
advisory along with convenient and personalized investment execution. KPW offers an
unmatched product basket, ranging from debt, equity, mutual funds, insurance, derivatives,
commodities, structured products, international funds, art funds and real estate. It is a unique
service aimed at transforming clients’ dreams into reality.
KPW was set up to cater to HNIs, keeping in mind that they require a different kind of financial
planning and management. Our services include planning and protection of finances, planning of
business and retirement needs, and a host of other services, which will help augment their
existing as well as future finances and lifestyle. We combine a hard-nosed business approach
with a soft touch of personalized attention and dedicated customer care.
Our research reports have been widely appreciated by the HNI segment. The delivery and
support modules have been fine-tuned by giving our clients access to online portfolio
information, constant updates on their portfolios as well as value-added advice on portfolio
churning, sector switches, etc. Moreover, the investment recommendations given by our research
team in the cash market have enjoyed a high success rate.
To tap NRIs, we commenced operations in the Middle East, Dubai to cater to a significant Indian
population that resides there and is keen on participating in India’s growth story. We have a
strong team that specializes in offering not only Indian investment products but also local
investment products to these customers
PORTFOLIO MANAGEMENT SERVICES
Portfolio management services are meant for high net worth individuals or institutions who want
a personalized management of their finances. A team of expert professionals conduct extensive
research on markets to provide a customized solution to achieve unique investment objectives.
This ensures best selection of investment opportunity within an asset class and active monitoring
for optimized results. Investors are provided with an all time access to track their portfolios. Our
PMS offerings range across two asset classes – Equity and Debt, with multiple options for each
asset class...
KARVY FORTUNE
Karvy Fortune helps individuals and small organizations forge a partnership with Karvy which is
one of the largest financial services group serving over 60 million investors and provides
investor services to over 400 corporate houses in the country. Karvy Fortune already has a huge
network of franchisees, with presence in 330 cities, and a total of 787 business associates all over
India.
Karvy Fortune is constantly on the lookout for hard working, ambitious individuals who would
like to build a robust business without the usual hassles associated with starting an enterprise. As
a business partner of Karvy Fortune you get to be a part of an established broking house, which
is hugely successful in providing financial services to millions of customers. The risk reward
ratio for the individual/ enterprise becoming a franchisee is also very low considering this is an
already established business model and a brand name that has great value in the financial
markets in India.
In addition, as a franchisee owner one can focus on your core skills in running a business,
without the need to assemble a team of specialists from scratch, as the company provides them
with the technical and fundamental support and training.
The burgeoning stock market is offering a never before opportunity for the broking business and
a franchisee could use this opportunity to establish a profitable business.
INVESTMENT BANKING
Recognized as a leading merchant banker in the country, we are registered with SEBI as a
Category I merchant banker. We have built up a reputation as an able merchant banker over the
years by capitalizing on opportunities in corporate consolidation, mergers & acquisitions,
corporate restructuring and capital raising (including raising resources for Corporates or the
government). Our success over the past two decades has given us the confidence to focus in this
sector with renewed vigor.
The high-quality professional team and our work-oriented dedication have propelled us to offer
value-added corporate financial services and serve as a professional navigator for the long-term
growth of our clients which include leading Corporates, state governments, foreign institutional
investors, and public and private sector companies and banks in Indian and global markets.
Our advisory and consultancy roles in restructuring, divestitures, acquisitions, de-mergers, spin-
offs, joint ventures, privatization and takeover defense mechanisms have elevated our
relationship with the client to one based on unshakable trust and confidence.
COMMODITIES BROKING
An ISO 9001:2008 certified company, Karvy Comtrade Limited (KCTL) is India’s leading
commodities brokerage house. We have membership of Multi Commodity Exchange of India
(MCX), National Commodity and Derivatives Exchange (NCDEX), National Multi-Commodity
Exchange of India (NMCE), National Spot Exchange (NSEL), NCDEX Spot Exchange
(NSPOT), Ace Commodity Exchange (ACE) and Indian Commodity Exchange (ICEX). We are
one of the early players in this business and have built a very strong research which is widely
acknowledged across our customer base be it the Corporates or the traders who comprise our
prime customer segment. We are by far the only commodity trading entity that has a presence in
the wholesale markets where the commodities are auctioned purely to get a very strong sense on
the demand supply for most of the agricultural products...
NON - BANKING FINANCIAL SERVICE

Karvy Finance, an NBFC established in 2009, is primarily focused on Micro & Small Enterprise
Secured Business Loans with Loan against Property, Loan against Gold & Loan for Small
Commercial Vehicles. Karvy Finance believes in serving the underserved business customers in
India’s market for all their loan needs with a network of 75 neighborhood lending branches in 35
locations. Karvy Finance aims to provide Fast, Friendly & Flexible loan services to its target
audience
Keeping in line with Karvy credo to be a leading and preferred financial services provider, our
focus at Karvy Finance is to provide the complete spectrum of financial services products to our
customers and build a strong nationwide distribution footprint to emerge as the leader in Micro,
Small & Medium Enterprise segments in India. At Karvy Finance, we recognize your self-worth
and help in growing your net worth and achieving your dreams on your own terms..
REALTY SERVICES
Karvy’s Realty services are engaged in the business of value-added real estate and property
services. We offer individuals and Corporates myriad options across investments, financing and
advisory services in the realty sector. Building on the Karvy brand as a leading industry
benchmark for world-class customer servicing and quality standards, we bring forth a reputation
for reliability, dependability and honesty.
We have a deep understanding of the sector, and, therefore, the needs and preferences of our
clients. Our team of qualified realty professionals facilitates long-term relationships with buyers
and sellers of properties alike across the country, thus enabling clients to put their money in
genuine properties for a decent value appreciation at the right place and at the right price..
REGISTRY SERVICES
Karvy Computershare is a 50:50 joint venture between Karvy and Australia-based
Computershare – the world’s largest transfer agent. Karvy Computershare is the largest registrar
in India, servicing over 70 million investor accounts spread over 1,300 issuers including banks,
PSUs and mutual funds. Karvy Computershare has a workforce of around 4,000 experienced
professionals drawn from various disciplines. The worldwide network of Computershare will
hold us in good stead by keeping us abreast of the international standards, in addition to letting
us leverage the best technologies from around the world.
Issue registry
Karvy Computershare (KCPL) has emerged as the largest transaction-processing house in the
Indian corporate sector, mobilizing funds for numerous companies. Our ability to execute
voluminous transactions and our hardcore expertise in technology applications has gained us the
No.1 slot in our field of business. We are India’s first registry to receive ISO 9002 certification
and have now migrated to the ISO 9001:2008 standard for quality management systems, certified
by Norwegian company DNV . We have also been awarded ISO 27001:2013 certification by
DNV, for high standards with respect to information security and management systems, which
stands testimony to our insistence on customer service excellence. In addition to our unique
investor servicing presence across all phases of a public issue, we at KCPL are actively
coordinating with both depositories (NSDL and CDSL) to develop special models that enable
customers to access depository services during an IPO.
Corporate Shareholder Services
KCPL has been a customer-centric company since inception. We offer a single platform to
service multiple financial instruments, in our bid to satisfy the varying needs of both
Corporates and their retail investors. In that regard, our volume-management capability is
legendary. Today, we are recognized as a company that exceeds customer expectations,
which is a prime reason for the strong customer loyalty we generate. An opinion poll
commissioned by The Merchant Banker Update and conducted by the reputed market
research agency MARG found KCPL the “Most Admired” registrar among financial-
services companies.
Mutual Fund Services
KCPL has attained a position of immense strength as a provider of across-the-board transfer

agency services to asset management companies (AMCs), distributors and investors. Nearly
40% of India’s AMCs leverage our range of high-quality services. Besides providing the
entire back-office processing, we are an interface between the AMC and the investor.
Carrying our ‘limitless’ ideology forward, we have explored new dimensions in every aspect
of mutual fund servicing, from volume management, cost-effective pricing, delivery in the
least turnaround time and efficient back-office and front-office operations, to strong
customized service. KCPL has been with AMCs every step of the way, helping them to serve
investors better by offering a diverse range of customized services. Our ‘first-to-market’
approach has earned us the reputation of an innovative service provider with a visionary bent
of mind
FOREX & CURRENCIES

Forex and currencies is another business vertical of the Karvy group to venture into Trade and
Corporate Finance Segment, Forex Corporate Advisory Services. The company has been
registered with FEDAI. We offer syndication services to the Indian clients in the area of Buyers
and Suppliers Credit Services. External Commercial Borrowings, Working capital arrangement,
Bill Discounting & Short Term Investment options etc. Intermediary services in Forex interbank
broking and help companies/ Corporates/individuals to explore extra-ordinary opportunities,
manage and sustain growth, and maximize their revenue by minimizing the risks in Forex
transactions.
INSURANCE REPOSITORY
Karvy Insurance Repository (Kinrep) is a licensed Insurance Repository in India. Kinrep has
been offering various life and general insurance companies since 2008. Kinrep has completely
home grown mature business applications to cater to the in house team as well as clients.
Karvy Insurance Repository is a leader in transforming and managing business processes using a
blend of cutting edge technology and refined practices. Kinrep has wide network of 500 branches
across the length and breadth of the country. Kinrep is the first insurance repository to offer full
suite of services to insurers, policy holders and agents of life insurance on a variety of mobile /
tablet platforms including the conventional ones. Kinrep brings over 2000 man-years of pooled
BPO experience with over 100 man-years in the Insurance industry. Kinrep offers the best in
class security to insurers with ISO 27001 certified processes, fully owned branch network and
fortified IT and operational controls..
NON FINANCIAL SERVICES
DATA MANAGEMENT SERVICES

Data Management Services offers services in the areas of E-governance processing, insurance
back office processing, record keeping, and back office for BFSI clientele and telecom, data
management requirements of large corporations.
E- Governance
In today’s world where governments are gearing up to the ever growing needs of the citizens and
scaling to reach their mission, we offer a unique value proposition and present our bouquet of
services…
Telecom
At a time when telecom companies are looking to grow beyond the boundaries with minimum
input costs, with our pedigree and footprint in the country we are offering solutions to help them
grow. The service offerings spectrum has been designed in such a way so that an end to end
model is offered...
Banking
Banks and financial services companies are looking to penetrate into deeper untapped markets.
We are helping these companies to reach the potential markets with our wide array of services.
Here we have designed our service spectrum in such a way that it is focused for for each product
category in order to help you ascertaining the services you need...
KYC Registrations
With a view to bring uniformity and remove duplication efforts in the KYC requirements for the
securities markets, SEBI has introduced the SEBI KYC Registration Agency (KRA)
Regulations, 2011...
INTERNATIONAL BUSINESS
Karvy Global is a leading Business Process and Knowledge Services Company, focuses on
delivering knowledge based business solutions for its clients and provides an innovative
framework of solutions that are directly tied to improving bottom line results.
We serve investment banks, insurance providers, brokerages, hedge funds, research agencies,
and life settlement providers across the United States, Middle East, and Europe. Our clients have
found their cost advantage, ability to scale efforts, and specialist knowledge regarding emerging
markets to be a strong advantage in the new, fast, and unpredictable world.
Our areas of focus include equity research, investment banking support, commodity research,
business research and specialized transaction processing services in BFSI & Healthcare verticals.
MARKET RESEARCH
Karvy Insights (KI, pronounced ‘key’), is the market research arm of the Karvy Group. It is a
full-service market research and insights organization, offering both Qualitative and Quantitative
research solutions across sectors like CPG, Automotive, Finance, Retail/e-comm, Telecom,
Infrastructure, Social research to name a few. KI is all about discovering different facets of life in
all its nuances, detail and complexities. Its vision is to offer 'operative' intelligence to facilitate
growth in every sphere, person and business. So whether it is about shopping behavior/ touch
point audits, education choices, healthcare practices, high value spends on luxury items or about
regular day-to-day choices of products, KI can support you.
ANALYTICS
Karvy Analytics is building world-class solutions for the global analytics universe. Its solutions
bring immediate business benefits to global customers interested in leveraging big data,
statistical and mathematical modeling techniques, social analytics, and mobile descriptive
analytics for new business insights. Karvy Analytics is focused on multi-industry use cases for
companies that need technology and professional services for their functional and operational
analytics projects. It has partnerships with the world’s leading brands to ensure a strong and
supportive ecosystem
CHAPTER 3
THEORETICAL
BACKGROUND
CHAPTER 3
Marketing:
Marketing is a social process by which individuals and groups obtain what they need and want
through creating, offering and freely exchanging products and services of value with others.
Marketing Management:
Marketing management is the process of planning and the executing the conception, pricing,
promotion and distribution of ideas, goods and services to create exchanges that satisfy.
Individual and Organizational Goals:

Marketing management takes place hen at least one party to a potential exchange thinks about
means of an achieving desired response from the parties. We see marketing management as the
art and science of choosing target markets and getting, keeping and growing customers through
creating, delivering and communicating superior customer value.
Demand Forecasting:
One of the company’s major reasons for undertaking a marketing research is to identify market
opportunities. Once research I complete the company must carefully evaluate opportunity before
choosing its target market specifically, the company needs to measure and forecast size, growth
and profit of each opportunity. Sales forecasts are used by finance to raise the needed cash for
investment and operation, by the manufacturing department to establish capacity and output
levels b purchasing to acquire the right amount of supplies and by human resource to hire and
needed number of workers. Marketing is responsible for preparing the sales forecasts. If its
forecast is far-off the mark, the company either will be saddled with excess capacity and
inventory or will lose money because of inadequate inventories.
Measures of Market Demand:

As part of their ongoing, companies prepare many estimates of market size.
Demand can be measured for six different products levels, five different space levels and five
different time levels.
Each demand measure serves a specific purpose. A company might forecast short-run demand
for a particular product for the purpose of ordering raw-materials, planning, production and
borrowing cash.
Potential market:
The potential market is a set of consumers who profess a sufficient level of interest in a demand
market offer.
Consumer interest is not enough to define a market, however potential consumers must have
income for the product and they must have access to the product offer. If the product is not
distributed in certain areas, potential consumers in those areas are not available to marketers.
Market Potential:
The market forecast shows expected market demand not maximum market demand. For the later
we have to visualize the level of market demand for a very high level of industry marketing
expenditure, where further increases in marketing effort would have little in stimulating further
demand. Market potential is the limit approached by market demand as industry marketing
expenditures approach infinity for a given environment.
Total market Potential:

Total market potential is the maximum amount of sales that might be valuable to all firms in an
industry during a given period, under given level of industry marketing effort and given
environmental conditions. The common way to estimate total market potential is as follows.
Q=NOP
Where,
Q= total market potential
N= number of buyers by an average buyer
O=Quantity purchased by an average buyer
P=price of an average unit
MAJOR STOCK EXCHANGES IN INDIA
The two major stock exchanges in India are:-

National Stock Exchange (NSE)
Bombay Stock Exchange (BSE)
NATIONAL STOCK EXCHANGE
The NSE was incorporated in Nov 1992 with an equity capital of Rs. 25 crs. The
International securities consultancy (ISC) of Hong Kong has helped in setting up NSE. ISC has
prepared the detailed business plans and installation of hardware and software systems. The
promotions for NSE were financial institutions, insurances companies, banks and SEBI capital
market ltd, Infrastructure leasing and financial services ltd and stock holding corporation ltd.
It has been set up to strengthen the move towards professionalization of the capital market
as well as provide nationwide securities trading facilities to investors.
NSE is not an exchange in the traditional sense where brokers own and manage the
exchange. A two tier administrative set up involving a company board and a governing aboard
of the exchange is envisaged.
NSE is a national market for shares PSU bonds, debentures and government securities since
infrastructure and trading facilities are provided.
NSE - NIFTY:
The NSE on April 22, 1996 launched a new equity Index. The NSE-50. The new Index which
replaces the existing NSE-100 Index is expected to serve as an appropriate Index for the new
segment of futures and options.
“Nifty " means National Index for Fifty Stocks.
The NSE-50 comprises 50 companies that represent 20 broad Industry groups with an
aggregate market capitalization of around Rs. 1,70,000 crs. All companies included in the Index
have a market capitalization in excess of Rs 500 crs each and should have traded for 85% of
trading days at an impact cost of less than 1.5%.
The base period for the index is the close of prices on Nov 3, 1995, which makes one year of
completion of operation of NSE’s capital market segment. The base value of the Index has been
set at 1000.
BOMBAY STOCK EXCHANGE
This stock exchange, Mumbai, popularly known as "BSE" was established in 1875 as “The
Native share and stock brokers association", as a voluntary non-profit making association. It has
an evolved over the years into its present status as the premiere stock exchange in the country. It
may be noted that the stock exchanges the oldest one in Asia, even older than the Tokyo Stock
exchange which was founded in 1878.
The exchange, while providing an efficient and transparent market for trading in
securities, upholds the interests of the investors and ensures redressed of their grievances,
whether against the companies or its own member brokers. It also strives to educate and
enlighten the investors by making available necessary informative inputs and conducting
investor education programmers.
A governing board comprising of 9 elected directors, 2 SEBI nominees, 7 public representatives

and an executive director is the apex body, which decides the policies and regulates the affairs of
the exchange. The Executive director as the chief executive officer is responsible for the day
today administration of the exchange. The average daily turnover of the exchange during the
year 2000-01(April-March) was Rs 3984.19 crs and average number of daily trades 5.69 laces.
However the average daily turnover of the exchange during the year 2001-02 has declined to Rs.
1244.10 crs and number of average daily trades during the period to 5.17 laces. The average
daily turnover of the exchange during the year 2002-03 has declined and number of average
daily trades during the period is also decreased.
The Ban on all deferral products like BLESS AND ALBM in the Indian capital markets by
SEBI i.e. July 2, 2001, abolition of account Period settlements, introduction of compulsory
rolling settlements in all scrip’s traded on the exchanges i.e. Dec 31, 2001, etc., have adversely
impacted the liquidity and consequently there is a considerable decline in the daily turnover at
the exchange. The average daily turnover of the exchange present scenario is 110363 (Laces) and
number of average daily trades 1057(Laces)
BSE INDICES:
In order to enable the market participants, analysts etc., to track the various ups
and downs in the Indian stock market, the Exchange has introduced in 1986 an equity stock
index called BSE-SENSEX that subsequently became the barometer of the moments of the share
prices in the Indian stock market. It is a "Market capitalization-weighted" index of 30
component stocks representing a sample of large, well-established and leading companies. The
base year of Sensex is 1978-79. The Sensex is widely reported in both domestic and
international markets through print as well as electronic media.
Sensex is calculated using a market capitalization weighted method. As per this

methodology, the level of the index reflects the total market value of all 30-component stocks
from different industries related to particular base period. The total market value of a company
is determined by multiplying the price of its stock by the number of shares outstanding.
Statisticians call an index of a set of combined variables (such as price and number of shares) a
composite Index. An Indexed number is used to represent the results of this calculation in order
to make the value easier to work with and track over a time. It is much easier to graph a chart
based on Indexed values than one based on actual values world over majority of the well-known
Indices are constructed using “Market capitalization weighted method ".
In practice, the daily calculation of SENSEX is done by dividing the aggregate market
value of the 30 companies in the Index by a number called the Index Divisor. The Divisor is the
only link to the original base period value of the SENSEX. The Divisor keeps the Index
comparable over a period of time and if the reference point for the entire Index maintenance
adjustments. SENSEX is widely used to describe the mood in the Indian Stock markets. Base
year average is changed as per the formula
New base year average = Old base year average*(New market Value/old market value)
OVERVIEW OF THE REGULATORY FRAMEWORK OF THE
CAPITAL MARKET IN INDIA
India has a financial system that is regulated by independent regulators in the sectors of banking,
insurance, capital markets and various service sectors. The Indian Financial system is regulated by
two governing agencies under the Ministry of Finance. They are:
1. Reserve Bank of India

The RBI was set up in 1935 and is the central bank of India. It regulates the financial and banking
system. It formulates monetary policies and prescribes exchange control norms
2. Securities and Exchange Board of India (SEBI):

SEBI was set up as an autonomous regulatory authority by the Government of India in 1988 " to
protect the interests of investors in securities and to promote the development of, and to regulate
the securities market and for matters connected therewith or incidental thereto." It is empowered
by two acts namely the SEBI Act, 1992 and the securities contract (regulation) Act, 1956 to
perform the function of protecting investor's rights and regulating the capital markets
Department of Economic Affairs

The capital markets division of the Department of Economic Affairs regulates capital market and
securities transactions.
The capital markets division has been entrusted with the responsibility of assisting the
Government in framing suitable policies for the orderly growth and development of the securities
markets with SEBI, RBI and other agencies. It is also responsible for the functioning of the Unit
Trust of India (UTI) and Securities and Exchange Board of India (SEBI)
The principal aspects that are dealt with the capital market division are:
 Policy matters relating to the securities market
 Policy matters relating to the regulation and development and investor protection of the
securities market and the debt market.
 Organizational and operational matters relating to SEBI.
The Capital Market is governed by:
Securities contract (Regulation) Act, 1956
Securities contract (Regulation) Rules, 1957
SEBI Act, 1992
Companies Act, 1956
SEBI (Stock Brokers and Sub Brokers) Rules, 1992
Exchange Bye-Laws Rules & Regulations.
Self-Regulating role of the Exchange

The exchange functions as a Self-Regulatory Organization with the parameters laid down by the
SCRA, SEBI Act, SEBI Guidelines and Rules, Bye-laws and Regulations of the Exchange. The
Governing Board discharges these functions. The Executive Director has all the powers of the
governing board except discharging a member indefinitely or declaring him a defaulter or
expelling him. The Executive Director Takes decision in the areas like surveillance, inspection,
investigation, etc. in an objective manner as per the parameters laid down by the governing board
or the statuary committees like the Disciplinary Action committee
TRADING WITH STOCK MARKET
This section will introduce us about the process and the instruments used to help a customer or a
client to trade with arcadia securities. This process is almost similar to any other trading firm but
will be some difference in the cost of brokerage commission.
Trading: It is a process by which a customer is given facility to buy and sell share. This buying
and selling can only be done through same broker and this is where Arcadia helps its customer.
A customer willing to trade with any brokerage house need o have a demat account, trading
account and saving account with a brokerage firm. Anyone having following document can open
all the above mentioned account and can start trading.
Document Required
3 photographs (signed across)
Photo Identification Proof- any of the following-Voter ID/Driving License/Passport, A
Address Proof any of the following-Voter ID/Driving License/Passport/Bank statement or pass
book sealed and attestation by bank official/ BSNL landline bill.
A crossed cheque favoring “Karvy Stock Broking” of the required amount. The amount for
demat as well as trading will be Rs900/-(free demat+900 Trading Account) the minimum amount
being Rs 900 a cheque can be given for a larger amount.
Copy of PAN card is mandatory.
Registration Kit
CDSL demat Kit
Bank and address proof declaration.
PAN name discrepancy form.
These documents may not be consumer friendly but is to avoid illegal transaction and to prevent
black money. This ensures that money invested is accounted.
Techniques and Instruments for Trading
The various techniques that are available in the hands of a client are:-
1. Delivery
2. Intraday
3. Future
4. Forwards
5. Options
6. Swaps
Basic Requirement for doing Trading

Trading requires opening a Demat account, Demat refers to a dematerialized account. You need
to open a Demat account if you want to buy or sell stocks. So it is just like a bank account where
actual money is replaced by shares. We need to approach the Depository participants (DP, they
are like bank branches) to open Demat account.
A depository is a place where the stocks of investors are held in electronic form. The depository
has agents who are called depository participants (DPs).
Think of it like a bank. The head office where all the technology rests and details of all accounts
held is like the depository. And the DPs are the branches that cater to individuals.
There are only two depositories in India-
 The National Securities Depository Ltd (NSDL) and the
 Central Depository Services Ltd (CDSL)
Capital Market Participants

 Banks
 Exchanges
 Clearing Corporations
 Brokers
 Custodians
 Investors
PARAMETERS OF INVESTMENT
The nature of investment differs from individual to individual and is unique to each one because
it depends on various parameters like future financial goals, the present & the future income
model, capacity to bear the risk, the present requirements and the lot more. As an investor
progresses on his/her life stage and as his/her financial goals change, so does the unique investor
profile. Economic development of a country depends upon its investment. The emerging
economic environment of competitive markets signifying customer’s sovereignty has profound
implications for their savings and investment. Investment means person’s commitments b
towards his future.
INVESTMENT
The word “investment” can be defined in many ways according to different theories and
principles. It is a term that can be used in a number of contexts. However, the different meanings
of “investment” are more alike than dissimilar.
Generally, investment is the application of money for earning more money. Investment also
means savings or savings made through delayed consumption.
According to economies, investment is the utilization of resources in order to increase income or
production output in the future.
An amount deposited into a bank or machinery that is purchased in anticipation of earning
income in the long run is both examples of investments. Although there is a general broad
definition to the term investment, it carries slightly different meanings to different industrial
sectors.
According to economists, investment refers to any physical or tangible asset, for example a
building or machinery and equipment.
On the other hand, finance professionals define an investment as money utilized for buying
financial assets, for example stocks, bonds, bullion, real properties, and precious items.
According to finance, the practice of investment refers to the buying of a financial product or any
valued item with anticipation that positive returns will be received in the future. The most
important feature of financial investments is that they carry high market liquidity. The method
used for evaluating the value of a financial investment is known as valuation. According to
business theories, investment is that activity in which a manufacturer buys a physical asset, for
example stock or production equipment in expectation that this will help the business to prosper
in the long run.
Characteristics of an investment decision

1. It involves the commitment of funds available with you or that you would be getting in the
future.
2. The investment leads to acquisition of a plot, house, or shares and debentures.
3. The physical or financial assets you have acquired are expected to give certain benefits in the
future periods. The benefits may be in the form of regular revenue over a period of time like
interest or dividend or shares or appreciation after some point of time as normally happens in the
case of investment in land or precious metals.
Essentials of Investment
Essentials of investment refer to why investment, or the need for investment, is required. The
investment strategy is a plan, which is created to guide an investor to choose the most
appropriate investment portfolio that will help him achieve his financial goals within a particular
period of time.
An investment strategy usually involves a set of methods, rules and regulations and is designed
according to the exchange or compromise of the investor’s risks and returns.
A number of investors like to increase their earnings through high-risk investments, while others
prefer investing in assets with minimum risk involved. However, the majority of investors
choose an investment strategy that lies in the middle.
Investment strategies can be broadly categorized into the following types:
Active strategies: One of the principal active strategies is market timing (an investor is able to
move into the market when it is on the low and sell the stocks when the market is on the high)
which is applied for maximizing yields.
Passive strategies: Frequently implemented for reducing transaction costs.
One of the most popular strategies is the buy and hold, which is basically a long term investment
plan. The idea behind this is that stock markets yield a commendable rate of return in spite of
stages of fluctuation or downfall. Indexing is a strictly passive variable of the buy and hold
strategy and in this case an investor purchase a limited number of every share existing in the
stock market index, for example the Standard and Poor 500 Index, or more probably in an index
fund, which is a form of a mutual fund.
Additionally, as the market timing strategy is not applicable for small-scale investors, it is
advisable to apply the buy and hold strategy. In case of real estate investment the retail and
small-scale investors apply the buy and hold strategy, because the holding period is normally
equal to the total span of the mortgage loan.
PRINCIPLES OF INVESTMENT
Five basic principles serve as the foundation for r the investment approach. They are as follows:
Focus on the long term.
There is substantive empirical evidence to suggest that equities provide the maximum risk
adjusted returns over the long term. In an attempt to take full advantage of this phenomenon,
investments would be made with a long term perspective.
Investments confer proportionate ownership
The approach to valuing a company is similar to making an investment in a business. Therefore,
there is a need to have a comprehensive understanding of how the business operates.
Maintain a margin of safety
The investment portfolio could be regularly monitored to understand the impact of changes in
business and economic trend as well as investor sentiment. While short-term market volatility
would affect valuations of the portfolio, this is not expected to influence the decision to own
fundamentally strong companies.
Disciplined approach to selling
The decision to sell a holding would be based on either the anticipated price appreciation being
achieved or being no longer possible due to change in fundamental factors affecting the company
or the market in which it competes, or due to the availability of an alternative that, in view of the
investment Manager, offers superior returns.
INVESTMENT PROCESS
 Framing of investment policy
 Investment Analysis
 Valuation
 Portfolio construction
 Portfolio evaluation
INVESTMENT TYPES
A particular investor normally determines the investment types after having formulated the
invested decision, which is termed as capital budgeting in financial lexicon. With the
proliferation of financial markets there are more options for investing types.
According to the financial terminology investment means the following:
1. Purchasing securities in money or capital market
2. Buying monetary or paper financial assets in money or capital markets.
3. investing in liquid assets like gold, real estate and collectibles.
Investors assume that these forms of investment would furnish them with some revenue by way
of positive cash flow.
These assets can also affect the particular investor positively or negatively depending on the
alterations in their respective values.
Investments are often made through the intermediaries who use money taken from individuals to
invest. Consequently the individual are regarded as having claims on the particular intermediary.
It is common practice for the particular intermediaries to have separate legal procedures of their
own. Following are some intermediaries.
 Banks
 Mutual Funds
 Pension Funds
 Insurance Companies
 Collective Investment Schemes
 Investment Clubs
Investment in the domain of personal finance signifies funds employed in the purchasing of
shares, investing in collective investment plans or even purchasing an asset with an element of
capital risk. In the field of real estate, investments imply buying of property with the sole
purpose of generating income.
Investment in residential real estate could be made in the form of buying housing property, while
investments in commercial real estate is made by owning commercial property for corporate
purposes that are geared to generate some amount of revenue.
Investment
The money you earn is partly spent and the rest saved for meeting future expenses. Instead of
keeping the savings idle you may like to use savings in order to get return on it in the future. This
is called Investment.
Why should one invest?
One needs to invest to:
 Earn return on your resources

 Generate a specified sum of money for a specific goal in life
 Make a provision for an uncertain future.
VARIOUS OPTIONS AVAILABLE FOR INVESTMENT
One may invest in:
Physical assets like real estate, gold / jewellery, commodities etc. or
Financial assets such as fixed deposits with banks, small saving instruments with post offices,
insurance/provident/pension fund etc. or securities market related instruments like shares, bonds,
debentures etc
Various Short-term financial options available for investment
Broadly speaking savings bank account, money market/liquid funds and fixed deposits with
banks may be considered as short- term financial investment options.
Savings Bank Account is often the first banking product people use, which offers low interest
(4%-5% p.a.), making them only marginally better then fixed deposits.
Fixed Deposits with Banks are also referred to as term deposits and minimum investment
period for bank FDs in 30 days. Fixed Deposit with banks are for investors with low risk
appetite, and may be considered for 6-12 months investment period as normally interest on less
than 6 months bank FDs is likely to be lower than money market fund returns.
Various Long-term financial options available for investment
Post Office Savings: Post Office Monthly Income Scheme is a low risk saving instrument,
which can be availed through any post office. It provides an interest rate of 8% per annum,
which is paid monthly.
Minimum amount, which can be invested is Rs 1,000/- and additional investment in multiples of
1,000/-. Minimum amount is Rs 3,00,000/- (if single) or Rs 6,00,000/-(if held jointly) during a
year. It has a maturity period of 6 years.
A bonus of 10% is paid at the time of maturity. Premature withdrawal is permitted if deposit is
more than one year old.
A deduction of 5% is levied from the principal amount if withdrawn prematurely; the 10% bonus
is also denied.
Public Provident Fund: A long term savings instrument with a maturity of 15 years and an
interest payable at 8% per annum compounded annually.
A PPF account can be opened through a nationalized bank at anytime time during the year and is
open all through the year for depositing money. Tax benefits can be availed for the amount
invested and interest accrued in tax-free. A withdrawal is permissible every year from the
seventh financial year of the date of the account and the amount of withdrawal will be limited to
50% of the balance at credit at the of the 4th year immediately preceding the year in which the
amount is withdrawn or at the end of the preceding year whichever is lower the amount of loan if
any.
Company Fixed Deposits: These are short-term (six months) to medium-term (three to five
years) borrowings by companies at fixed rate of interest which is payable monthly, quarterly,
semi-annually or annually.
They can also be cumulative fixed deposits where the entire principal along with the interest is
paid at end of the loan period .The rate of interest varies between 6-9% per annum for company
FDs. The interest received is after deduction of taxes.
Bonds: It is a fixed income (debt) instrument issued for a period of more than one year with the
purpose of raising capital.
The central or state government, corporations and similar institutions sell bonds. A bond is
generally a promise to repay the principal along with a fixed rate of interest on a specified date,
called the Maturity Date.
Mutual Funds: These are funds operated by an investment company which raises money from
the public and invests in a group of assets (shares, debentures etc.) in accordance with a stated
set of objectives. It is a substitute for those who are unable to invest directly in equities or debt
because of resource, time or knowledge constraints. Benefits include professional money
management, buying in small amounts and diversification. Mutual funds are issued and
redeemed by the Fund Management Company based on the fund’s net asset value (NAV), which
is determined at the end of each trading session. NAV is calculated as the value of all shares held
by the fund, minus expenses, divided by the number of units issued.
Equity Investment:-
Equity investment refers to trading of stocks and bond in the share market. It is also referred to
as the acquisition of equity or ownership participation in the company. An equity investment is
typically an ownership investment, where the investor owns an asset of the company. In this kind
of investment there is always a risk of the investor not earning a specific amount of money.
Equity investment can also be termed as payment to a firm in return for a partial ownership of
that firm. An equity investor, in some cases may assume some management control of the firm
and may also share in future profits.
In order to understand equity investment properly, it is necessary to see the technical and
fundamental analysis. The technical analysis of equity investment is primarily the study of price
history of the shares and stock market. A fundamental analysis of equity investment involves the
study of all available information that is relevant to the share market in order to predict the future
trends of the stock market. The annual reports, industry data and study of the economic and
financial environment are also included in the fundamental information of equity investment.
Mutual Funds and Segregated Funds
Mutual funds or other forms of pooled investment are equities held by private individuals but
managed and governed by prominent management firms. These types of financial holdings allow
individual investors to diversify their holdings and avoid potential loss. Segregated funds, on the
other hand are used by large private investors who wish to hold their shares directly rather than
in a mutual fund.
The prime advantage in investing in a pooled fund is that it gives the individual access to
professional advice through the fund manager. The major disadvantage involved are that the
investors must pay a fee to fund managers and that the diversification of the fund may not be
appropriate for all investors. In those cases, the investors may over-diversify by holding several
funds, thus reducing the risk.
Mutual Funds are supposed to be the best mode of investment in the capital market since they
are very cost beneficial and simple and d not require an investor to figure out which securities to
invest into. A mutual fund could be simply described as a financial medium used by a group of
investors to increase their money with a predetermined investment. The responsibility for
investing the pooled money into specific investment channels lies with the fund manager of said
mutual fund.
Therefore investment in a mutual fund means that the investor has bought the shares of the
mutual fund and has become a shareholder of that fund. Investors are able to purchase securities
with lower trading costs by pooling money together in a mutual fund rather than try to do it on
their own. However the biggest advantage that mutual funds offer is diversification which allows
the investor to spread out his money around a wide spectrum of investments. Therefore when one
is not doing well, another may be doing taking off, thereby balancing the risk to profit ratio and
considerably covering the overall investment.
The form of diversification is to invest in multiple securities rather than in just one security.
Mutual funds are set up with the précis objective of investing in multiple securities that can run
into hundreds. It could take weeks for an investor to investigate on this kind of scale, but with
investment in mutual funds all this could be done in a matter of hours.
DEBENTURES:-
In financial context, Debentures are Debt Instruments issued for a long term by governments and
big institutions for rising funds. The denture has some resemblances to bonds but the
securitization terms and condition are different for Debentures compared to a bond.
A Debenture is commonly considered as insecure there is no pledge or lien on particular assets.

Nevertheless, a debenture is secured by all the assets which are otherwise not pledged.
If there is a bankruptcy, Debenture holders will be counted as general creditors. The benefit that
the issuer enjoys from issuing a debenture is that they keep particular assets free of
encumbrances so the option is open to issue them for future financing.
Usually, Debentures are freely negotiable debt instruments. The Debenture holders
Works as a lender to the debenture issuer.

In return, the debentures issuer pays interest to the Debenture holders as it is paid in case of a
loan. In practical application, the difference between a Bond and a Debenture is not always kept
in some instances. Debentures area also referred to as bonds and vice-versa
TYPES OF DEBENTURES
 Convertible Debenture
 Non-Convertible Debenture
 Participative Debenture
 Non-Participative Debenture
 Redeemable Debenture
 Irredeemable Debenture
BOND MARKET:-
The bond market is a financial market that acts as a platform for the buying and selling of debt
securities. The bond market is a part of the capital market serving platform to collect fund for the
public sector companies,
Governments and corporations. There are a number of bond indices that reflect the performance
of a bond market.
The bond market can also be called the debt market, credit market, or fixed income market. The
size of the current international bond market is estimated to be $45 trillion. The major bond
market participations are: governments, institutional investors, traders, and individual investors.
According to the specifications given by the Bond Market Association, there are five types of
bond markets.
They are:
 Corporate Bond Market

 Municipal Bond Market
 Government and Agency Bond Market
 Funding Bond Market
 Mortgage Backed and Collateralized Debt Obligation Bond Market.
Share Market Investment
Shares are purchased and sold on the primary and secondary share markets. To invest in the
share market, investors acquire a call option, which is the right to buy a share, or a put option,
which is the right to sell a share. In general, investors buy put options if they expect prices to
rise, and call options if they expect prices to fall. The value of a derivative depends on the value
of the underlying assets. The various classifications of derivatives relevant to share market
investment are;
 Swap
 Futures Contract
 Forward Contract
 Option Contract
A forward contract is agreements between two parties purchase or sell a product in the future, at
a price determined now. This mutual agreement satisfies the profit motive of both the buyer and
seller, and the uncertainties and risks of price fluctuations in the future are aborted. A future
contract is different from a forward contract in the sense that the former requires the presence of
a third party and the commitment for trade is simply notional.
Before a share is chosen for investment, a technical analysis of the share is performed. The price
and volume of a share over a period of time are traced and the business plan is constructed. A
fundamental analysis involves a close study of the company associated with the share, and its
performance over time. The fundamental analysis is important for the share market investor.
The price levels of a traded share as follows.
Opening Price: This is the price at which the market opens. In other words, it is the price of the
first transaction.
Closing Price; this is the price at the time of closing of the market or the price of the last trade.
Intra-Day High: This denotes the maximum price at which the share was traded in the day
Intra-day low: this is the minimum price at which the share was traded in the day
Debt investments
Debt securities (in the form of non-convertible debentures, bonds, secured premium notes, zero
interest bonds, deep discount bond. Floating rate bond/ notes, securitized debt, pass through
certificates, asset backed securities, mortgage backed securities and any other domestic fixed
income securities including structured obligations etc) include, but are not limited to
 Debt obligation of the Government of India, State and local government, government
agencies and statuary bodies(which may or may carry a state/ central government
guarantee)
 Securities that have been guaranteed by government of India and state governments.
 Securities issued by corporate entities (public/ private sector undertakings)
 Securities issued by public/ private sector banks and development financial institutions.
Money Market Instruments Include
 Commercial Papers
 Commercial bills
 Treasury bills
 Government securities having an unexpired maturity up to one
year.
 Call or notice money
 Certificate of deposit
 Usance bills
 Permitted securities under a repo/ reverse repo agreement
 Any other like instruments as my be permitted by RBI/SEBI from
time to time
Investments will be made through secondary market purchase, initial public offers, other public
offers, placements and right offers (including renunciation) and negotiated deals.
The securities could be listed, unlisted, privately laced, secured/unsecured, rated/ unrated of any
maturity.
The AMC retains the flexibility to invest across all the securities/ instruments in debt and money
market.
Investment in debt securities will usually be in instruments which have been assessed as “high
investment grade” by at least one credit rating agency authorized to carry out such activity under
the applicable regulations. In case a debt instrument is not rated, prior approval of the Board of
Directors of Trustee and AMC will be obtained for such an investment. Investment in debt
instrument shall generally have a low risk profile and those in money market instruments shall
have an even lower risk profile. The maturity profile of debt instruments will be selected in
accordance with the AMC’s view regarding current market conditions, interest rate outlook.
Pursuant to the SEBI Regulations, the scheme shall not make any investment in:
Any unlisted security of an associate or group company of the sponsor; or
Any security issued by way of private placement by an associate or group company of the
Sponsor; or
The listed securities of group companies of the sponsor which is in excess of 25% of the net
assets.
The Scheme may invest in other schemes managed by the AMC or in the schemes of any other
mutual funds, provided it is in conformity with the investment objectives of the Scheme and in
terms of the prevailing SEBI Regulations. AS per the SEBI Regulations, no investment
management fees will be charged for such investments and the aggregate inter Scheme
investment made by all the schemes of HDFC Mutual Fund or in the schemes of other mutual
funds shall not exceed 5% of the assets value of the HDFC Mutual Fund.
CHAPTER 4
DATA ANALYSIS AND
INTREPRETATION
CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
Demographic Profile of Investors
Table: Demographic Profile of investors
Demographics No of respondents Percentage of Respondents

Age
Less than 20 years 0 0
20-40 years 20 40
Greater than 40 years 30 60
Total 50 Total 50
Qualification
Metric 0 0
Under Graduate 25 50
Post Graduate 25 50
Total 50 Total 100

Occupation
Service 19 38
Profession 6 12
Business 15 30
Student 10 20
Total 50 Total 100
Income (per month)
Less than Rs 20000 10 20
Rs 20000-40000 25 50
Greater than 40000 15 30
Total 100 Total 100
Analysis & Interpretation:

It was found that the major population of investors was greater than 40 years and 60% was of
20-40 years. And 50% respondents were under graduate and 50% were post graduate. 35% of
respondents were doing service. And majority of respondents i.e. earn income between Rs
20000-40000 per month. It means majority of investors was greater than 40 years having income
in between Rs 20000-40000.
Statement 1: To know whether respondents invest.
Table no 1: To know whether respondents invest.
Investment decision No of respondents Percentage of Respondents
Yes 45 90
No 5 10
Total 50 100
Figure no 1 to know whether respondents invest.
Fig 1
No Yes
10%
90%

From the survey it was found that 90% of respondents invest in the stock market and 10% who
were non-investors.
Statement 2. Awareness regarding types of investment instruments.
Table no 2: types of investment options the person is aware of.

types of investments No of respondents Percentage of Respondents
Shares 15 30
Mutual Funds 23 46
Debentures 5 10
Bonds 5 10
Derivatives 2 4
total 50 100
Figure 2: types of investment options the person is aware of.
Fig 2
Shares Mutual Funds Debentures Bonds Derivatives
4%
10%
30%
10%
46%

Above pie-chart shows that 45% investors were aware of the mutual funds 25% investors were
aware of shares, 15% investors were aware of debentures, 10% investors were aware of bonds. It
means majority of persons aware about mutual funds whereas shares and debentures were of
second importance.
Statement 3: To know the type of investment option the person has been
investing
Table 3: type of investment option the person has been investing

Investment Alternative No of respondents Percentage of Respondents
Shares 15 30
mutual funds 15 30
debentures 10 20
bonds 5 10
Derivatives 5 10
total 20 100
Figure 3: type of investment option the person has been investing
Fig 3
Shares Mutual Funds Debentures Bonds Derivatives
10%
10% 30%
20%
30%

From the survey it was found that 30% of respondents invest in mutual funds 25% invest in
shares, 20% invest in debentures. Thus, it can be stated that maximum people invest in mutual
funds whereas shares were of second importance.
Statement 4: To know the rates at which the investment grow.
Table 4: The rates at which the investment grow.
investments growth rate No of respondents Percentage of Respondents

Steadily 0 0
At an average 5 10
At fast rate 45 90
Total 50 100
Figure 4: The rates at which the investment grow
Fig 4
Steadily At an Average At Fast Rate
0%
10%
90%

From the survey it was found that 90% of respondents want their investment grow at fast rate
whereas only 10% respondents were in the favor of their investment growth at average rate.
Statement 5: To know the frequency of investment by the respondents.
Table 5: frequency of investment

frequency of investments No of respondents Percentage of Respondents
Daily 0 0
Weekly 20 20
Monthly 48 48
Yearly 32 32
Total 100 100
Figure 5: frequency of investment
Fig 5
Daily Weekly Monthly Yearly
0%
20%
32%
48%

From the survey it was found that 48 respondents invest monthly, 32 invest yearly and there
were 20 respondents who invest weekly. Thus, it can be stated that majority of the investors
invest monthly in stock market.
Statement 6: To know the percentage of income that respondent invests
annually.
Table 6: the percentage of income that respondent invests annually.

annual income invested No of respondents Percentage of Respondents
Up to 10% 7 14
10-15% 11 22
15-20% 20 40
More than 20% 12 24
Total 50 100
Figure 6: the percentage of income that respondent invests annually.
Fig 6
Up to 10% 10-15% 15-20% More than 20%
24% 14%
22%
40%

From the survey it was found that 40 respondents invest 15-20% of their annual income, 24
respondents invest more than 20% of their annual income, 22 respondents invest up to 10-15%
of their annual income and 14 respondents invest up to 10% of their income in different
investment avenues. Thus, it can be concluded that majority of investors invest 10-20% of their
income.
Statement 7: To know the respondent’s influence on investment decision.
Table 7: the respondent’s influence on investment decision.

Sources No of respondents Percentage of Respondents
Self 24 40
Friends & Relatives 10 20
Service providers and 6 12
consultant
Newspaper & advertisements 5 10
Agents 3 6
Workshop & seminars 2 4
Total 50 100
Figure 7: the respondent’s influence on investment decision.
Fig 7
6% 4%
10% Self
48% Friends & Relatives
12%
Service Providers & Consultant
Newspaper & Advertisement
20%
Agents
Workshops & Seminars

From the above table & chart, it was found that multiple aspects for investing influenced
respondents. 48% respondents take investment decision on the basis of their personal evaluation
where as 20% respondents invest because of the influence of friends & relatives, the consultant’s
influences 12% respondents and the advertisement influences 10% respondents. Thus, it can be
stated that majority of investors are influenced by their own while opting for investment tool.
Statement 8: To know the factors that was considered while investing.
Table 8: the factors that were considered while investing.

Investment factors No of respondents Percentage of Respondents
Return on investments 15 3
Tax benefits 9 18
Capital appreciation 7 14
Maturity period 3 6
Risk 6 12
Safety of principal 3 6
Liquidity 7 14
Total 50 100
Figure 8: the factors that were considered while investing
Fig 8
6% 14% Return on investments

30%
Tax benefits
12% Capital appreciation
Maturity period
6%
18% Risk
14%
Safety of prinicipal
liquidity

From the above table & chart, it was found that maximum respondents considered return on
investments was most important factor, 18% respondents considered tax benefits as an important
factor and 14% respondents considered capital appreciation as an important factor. Thus, it can
be stated that majority of investors were consider return as an important factor while investing.
Statement 9: To know the investor’s action in case of stock market drop.
Table 9: the investors’ action in case of stock market drop.

Investor’s preference in case No of respondents Percentage of Respondents
of losses
Transfer funds into source 15 30
investments
Wait to see if investment 20 40
improves
Invest more funds 13 25
Withdraw funds & stop 2 5
investing
total 50 100
Figure 9: the investor’s action in case of stock market drop.
Fig 9
5%
Transfer funds into secure
30% investments
25%
wait to se if investments
improves
Invest more funds
40%
Withdraw funds & stop
investing
Analysis & Interpretation: From the above table & chart, it was found that maximum
respondents would wait to see if their investment improves and start generating funds. 30%
respondents would invest more funds, 25% respondents would transfer funds into secure
investment and 5% respondents would stop investing. Thus, it can be stated that majority of
investors would like to wait and see whether investment improves or they can invest more funds.
Statement 10: To know the decision regarding other investment policy.
Table 10: The other investment policy.

Investment decision No of respondents Percentage of Respondents
Yes 49 98
No 1 2
Total 50 100
Figure 10: The other investment policy.
Fig 10
Yes No
2%
98%

From the survey it was found that 98% of respondents have the other investment policy whereas
2% respondents do not have the other investment policy.
Statement 11: To know the satisfaction level of respondents with their
investment option.
Table 11: satisfaction level of respondents with their investment option.

Highly Dissatisfied Neutral Satisfied Highly
dissatisfied satisfied
Particulars Summated
score
(1) (2) (3) (4) (5)
Shares 10 6 14 30 40 384
Mutual funds 12 15 20 35 18 332
Bonds 20 18 35 19 8 277
Debentures 15 10 15 40 20 340
Derivatives 30 10 20 30 10 280
Range
Max Score=100*5=500 (highly satisfied)
Avg Score=100*3=300(Neutral)
Min Score=100*1=100(Highly dissatisfied)

Most of the respondents have given the highest summated score to shares. And the second most
important investing option is debentures which influenced the decision regarding investment.
Other important factor is mutual fund coverage which has the summated score. Return on
derivatives get the 280 summated score.
Statement 12: Important factors that were considered while investing.
Table 12: Important factors that were considered while investing.

Particulars Highly Dissatisfied Neutral Satisfied Highly Summated
dissatisfied satisfied score
(1) (2) (3) (4) (5)

Return on 0 0 4 30 66 462
investments
Tax 0 0 18 48 34 416
benefits
Capital 0 0 20 30 20 280
appreciation
Maturity 5 5 40 30 20 355
period
Risk 5 10 20 35 30 375
Safety of 10 20 40 20 10 300
principal
Liquidity 15 15 20 30 20 325
Range
Max Score=100*5=500 (highly satisfied)
Avg Score=100*3=300(Neutral)
Min Score=100*1=100(Highly dissatisfied)

Most of the respondents have given the highest summated score to Return on investments. And
the second most important investing option is Tax benefits which influenced the decision
regarding investment. Other important factor is Risk which has the 375 summated score.
CHAPTER 5
FINDINGS OF THE STUDY
CHAPTER 5
FINDINGS OF THE STUDY
1) Maximum investors are aware of all the investment options.

2) Investors do not invest in a single avenue. They prefer different avenues and maximum
investors prefer to invest in shares, mutual funds & debentures.
3) Maximum investors wants their investment grow at fast rate
4) The investment decision of investors is influenced by their own decisions and through
friends & relatives.
5) Different factors considered by investors while investing are return, risk, tax benefits,
capital appreciation and the most prominent factor is the return on any investment
avenue.
6) Majority of investors invest 15-20% of their annual income.
7) Maximum investors invest on monthly basis.
8) The investors investing in different avenues are highly satisfied with the return generated
by their investment option.
9) Maximum investors have other investment policies.
10) The most important factor is return which influenced the decision regarding investment.
CHAPTER 6
SUGGESTIONS
AND RECOMMENDATIONS
CHAPTER 6
SUGGESTIONS
Karvy Stock Broking should have to give special preferences to trading via branch network,
telephones and internet account.
Karvy Stock Broking should have to improve customized products for lending against shares
Integrated Trading and Depositary account should have to modify according to the need of the
investors.
Technology transforming desktop should have to be NEAT like terminal for internet trading.
One screen for both Cash and Derivatives trading system has to be revised and modified.
Equity research department at Karvy Stock Broking should have to study the market and provide
information.
Karvy Stock Broking should have customized insurance services.

RECOMMENDATIONS
Following were the recommendations of the study
The various investment tools which were mostly preferred by the investors were shares, mutual
funds etc. So there should be various other means to create awareness regarding the potential of
other instruments and the tools which can be more beneficial to the investors.
The investors consider various factors while making investments like risk, return, liquidity etc.
There should be rational thinking so that the investor is able to know that at what point of time
they need capital appreciation instead of reducing the risk and when they need return instead of
reducing the risk and when they need return instead of liquidity.
The preferred time span of investment by the investors depends upon the need of the investor
that whether they want to have early and high returns or wants to have stable returns, most
probably the long time span is suitable because the returns are high and safety is also there.
The satisfaction levels of various investors are different due to different investment alternatives
they opt for. If they will be aware of each type of alternatives and the worth of the alternatives
then investing as per that there satisfaction level will also be high
Investors should have the complete knowledge of stock market.

CHAPTER 7
CONCLUSION
CHAPTER 7
CONCLUSION
The nature of investment differs from individual to individual and is unique to each one because
it depends on various parameters like future financial goals, the present & the future income
model, capacity to bear the risk, the present requirements and lot more. As an investor progresses
on his life stage and his/her financial goals, so does the unique investor profile. Maximum
investors are aware of all the investment options. Investors do not invest in a single avenue. They
prefer different avenues and maximum investors prefer to invest in shares, mutual funds &
debentures. The investment decision of investors is influenced by their own decision and through
friends & relatives. Majority of investors invest. Majority of investors invest 15-20% of their
annual income. The most important factor is return which influenced the decision regarding
investment.
In today’s scenario when all services are going to be online or in electronic form, Karvy Stock
Broking Ltd creating awareness of online trading that client can trade from anywhere from the
world.
Risk management team of Karvy Stock Broking taking care of client portfolio and whenever the
value of his portfolio will go decrease by 30% client always informed by his relationship
manager.
In Karvy Stock Broking possibility of auction is very less because of large client base so he can
sell shares anytime.
CHAPTER 8
BIBILOGRAPHY
CHAPTER 8
BIBILOGRAPHY
BOOKS
A. Kotler. Philip,& Armstrong. Gary ,( 2006), Principals of
marketing 11thEdition.,publication
B. Malhotra .NareshK. ,(2007) , Marketing Research-An Applied
Orientation, 5th Edition.
WEBSITES
Introduction on Indian stock market available at
http://www.banknetindia.com/
Charles (1999) Economic policy, Astonishing growth in American’s
stock portfolios.
The Icfai Journal of Stock Market, 6 (3):43-60 available at
http://papers.ssrn.com/sol3/results.cfm
Johnson (2008) The value of Quality: Stock Market Returns to
Published Quality Reviews, The Icfai Journal of Applied Economics,
7(3):7-22, available at
http://papers.ssrn.com/sol3/results.cfm
QUESTIONNAIRE
QUESTIONNAIRE
Dear respondent,
I am a student of MBA is conducting a research on “ Market Potential
In Indian Stock Markets”. I would be extremely thankful if you spare
some time to answer the following questions. All the facts disclosed by
you will be used for academic purpose only.
PERSONAL PROFILE:
A) Name:
B) Age: Less than 20 years
20-40 years
Greater than 40 years
C) Gender:
a) Male
b) Female
D) Occupation:
a) Service
b) Profession
c) Business
d) Student
E) Income: Less than Rs 20000
Rs 20000-Rs 40000
Greater than Rs 40000

F) Qualification:
a) Metric
b) Under graduate
c) Post graduate
1. Do you invest in share markets?
a) Yes b) No
2. Out of the following which type of instrument are you aware of
a) Shares b) mutual fund
c) Debentures d) bonds
e) Derivatives
3. Where have you been investing?
a) Shares b) mutual fund
c) Debentures d) bonds
e) Derivatives
4. At which rates do you want your investment to grow?
a) Steadily
b) At an average rate
c)At fast rate
5. How frequently do you invest?
a) Daily b) Weekly
c) Monthly d) Yearly
6. What percent of your annual income do you invest?
a) Up to 10% b) 10-15%
c) 15-20% d) more than 20 %

7.By which source of information you came to know about particular option?
a) Self
b) Friends and Relatives
c) Service providers and consultants
d) Newspaper & advertisements
e) Agents
f) Workshop & seminars
8. Which factor do you consider before investing in share market?
a)Investment factors
b)Return on investments
c)Tax benefits
d)Capital appreciation
e)Maturity period
f)Risk
g)Safety of principal
h)Liquidity
9.In your opinion what would be the optimum strategy if stock market drops immediately after
you invest in it?
a)Transfer funds into source

investments
b)Wait to see if investment

improves
c)Invest more funds
d)Withdraw funds & stop

investing
10. Do you have any other investment policy?
a) Yes b) No
11. Rate the Level of satisfaction with the return generated by your investment option?
Highly satisfied Satisfied Neutral dissatisfied highly dissatisfied
(5) (4) (3) (2) (1)
Shares
Mutual funds
Bonds
Debentures
Derivatives
12. Rate the Level of satisfaction with the factors considered while investment?
Highly satisfied Satisfied Neutral dissatisfied highly dissatisfied
(5) (4) (3) (2) (1)
a) Return on investment
b) Tax benefits
c) Capital Appreciation
d) Maturity Period
e) Risk
f) Safety of principal
g) Liquidity

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A STUDY ON

“MARKET POTENTIAL IN INDIAN STOCK MARKETS”

(KARVY STOCK BROKING LTD. VISAKHAPATNAM)

MASTER OF BUSINESS ADMINISTRATION

Under the esteemed guidance of

Prof. M.Madhusudhana Rao (PhD)

Head of the Department

MARKET POTENTIAL ON INDIAN STOCK MARKET

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

Y. UMA NOOKARATNAM, MBA

SRINIVASA INSTITUTE OF MANAGEMENT STUDIES

MARKET POTENTIAL ON INDIAN STOCK MARKET

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

Y. UMA NOOKARATNAM, MBA

SRINIVASA INSTITUTE OF MANAGEMENT STUDIES

HOD SIGNATURE INTERNAL SIGNATURE EXTERANAL SIGNATURE

SRINIVASA INSTITUTE OF MANAGEMENT STUDIES

This is to certify that the project report entitled “A STUDY ON MARKET

POTENTIAL ON INDIAN STOCK MARKET WITH REFERENCE TO KARVY ”,

submitted by B.KISHORE, Regd. No. 116232602072, Department of

Management Studies, SRINIVASA INSTITUTE OF MANAGEMENT STUDIES,

VISAKHAPATNAM, is a record of bonafide work carried out by him under my

Ms RAJYALAKSHMI, MBA., Ms Y UMA NOOKRATNAM, MBA

I hereby declare that the project work entitled “A STUDY ON MARKET

POTENTIAL ON INDIAN STOCK MARKET WITH REFERENCE TO KARVY”,

submitted in the Department of Management Studies, SRINIVASA

INSTITUTE OF MANAGEMENT STUDIES, VISAKHAPATNAM, for the award

of Master of Business Administration is an original work carried out by me

under the supervision of Y. UMA NOOKARATNAM, Assistant Professor,

Department of Management studies. This work has not been submitted

previously to any other University or Institution for the award of any

Place: Visakhapatnam B.KISHORE

I hereby express my sincere thanks to Dr.S.MADHAVI LATHA, Director, Srinivasa Institute Of

I am extremely thankful to Mr.P.NAGIREDDY, for giving me permission to do the project

 THEORITICAL FRAMEWORK OF THE STUDY

 DATA ANALYSIS AND INTERPRETATION

 SUMMARY AND FINDINGS

I hereby declare that the project work entitled

Place: VISAKHAPATNAM (B.KISHORE)

I wish to express my deep gratitude to the management of

I express my deep gratitude to my guide

Prof. M.MADHUSUDHANA RAO, (PhD) Head of the Department,

I sincerely thank all the staff members of the department for

And finally I would like to thank my parents and friends whose

OVERVIEW OF THE REGULATORY FRAMEWORK OF THE

TRADING WITH STOCK MARKET

4 DATA ANALYSIS AND INTREPRETATION

6 SUGGESTIONS AND RECOMMENDATIONS

1. INTRODUCTION TO INDIAN STOCK MARKETS

 To know various options available in the Capital Market to invest.

 To know investor’s perception regarding investment in stock market.

 To know the satisfaction level of investors regarding return of different investment

 To study the market in the Indian Stock markets.

Theoretical universe: It included investors make investment in all over world.

Accessible Universe: It included investors make investment in Indian Stock market.