CHAPTER -I

INTRODUCTION
INTRODUCTION
Equity shares represent the ownership of a company and capital raised by the issue of
such shares is known as ownership capital or owner's funds. They are the foundation for the
creation of a company. Equity shareholders are paid on the basis of earnings of the company
and do not get a fixed dividend.

Equity share capital remains with the company. It is given back only when the company is
closed. Equity Shareholders possess voting rights and select the company’s management. The
dividend rate on the equity capital relies upon the obtainability of the surfeit capital.
However, there is no fixed rate of dividend on the equity capital.

 Equity capital is the foundation of the capital of a company. It stands last in the list of
claims and it provides a cushion for creditors.
 Equity capital provides creditworthiness to the company and confidence to
prospective loan providers.
 Investors who are willing to take a bigger risk for higher returns prefer equity shares.
 There is no burden on the company, as payment of dividend to the equity shareholders
is not compulsory.
 Equity issue raises funds without creating any charge on the assets of the company.
 Voting rights of equity shareholders make them have democratic control over
the management of the company

The term ‘Investment’ is quoted by various people from different perspectives. In economics,
investment is defined as the amount of money spent on production of goods, which will be
used for the purpose of future production. In finance, investment can be of two types either in
real assets, intangible assets or in financial assets. Financial asset is used to indicate purchase
of securities from the capital market. Investments are made in the capital market mainly to
ensure liquidity. In personal finance theories, an investment is purchase of shares, or any
other instruments with certain capital risk. In real estate theories indicate that the term
investment is used to represent the money utilized for buying property either for purchasing
of ownership or lease. A number of investment avenues are available in the market for
investment which includes Equity Shares, Mutual Funds, Bonds, Deposits and Cash
Equivalents. Equity Shares are longer term investments which provide a greater potential for
profit by providing share in growth at a higher risk. A Mutual Fund is one in which a group
of people come together to pool their money together and have it managed by a group of
professionals keeping in view of the investment objective and providing other benefits of
cost-efficiency, risk-diversification, professional management and sound regulation. Bonds
are fixed income instruments which renders lower level of risk at a fair return.

EQUITY SHARES ADVANTAGES

 Tax benefits

 Profit potential

 Value of The investment

 Liability limitation

 Increase in value

 Liquid In Nature

 Creditworthiness

 Ease of transferability
 OBJECTIVES OF THE STUDY

The Primary objective of this study is to identify the determinants of equity share prices in
Indian stock market. The following are the objectives that provide direction to achieve the
primary objective.

 Equity Shares are issued by companies to pool in investments. Funds raised by a

company through equity shares are used for expansion.
 Companies decide to raise funds through Equity Shares instead of debt as they save
on paying high interest.
 To build a theoretical framework that establishes linkage between Equity prices and
their determinants.
 To scale down the identified theoretical determinants of Equity prices in to
significant factors.
 To Analyze and validate the impact of identified significant factors of equity prices in
the context of Indian Stock Market.
 To suggest the factors to be considered by the investor while estimating the market
price of a share in the stock market.
IMPORTANCE OF THE STUDY

 Equity is important to businesses because it can be used to finance expansion.

 Funding business expansion by selling shares of stock to investors is
“equity financing.” When a company sells stock, it sells equity to investors for cash
that it can use to fund growth.
 Maturity of Equity Shares
 Par value is the face value of a share. Equity shares have a par value, a nominal stated
value.
RESEARCH METHODOLOGY

Research methodology comprises defining and redefining problems, formulating hypothesis

or suggested solutions; collecting, organizing and evaluating data, making deductions and
reaching conclusions; and at last carefully testing the conclusions to determine whether they
fir the formulating hypothesis.

A useful research methodology must be systematic, logical, empirical and replicable. The
researcher should follow certain systematic methods, steps and stipulation in designing,
planning and execution of the research.

RESEARCH DESIGN

A research design is simply the frame work or plan for a study that is used as guide in
collecting and analyzing the data. It is a blue print used for completing a study.

DATA COLLECTION

The study is based on primary as well as secondary data.

SOURCES OF DATA COLLECTION

PRIMARY DATA

Primary database been collected through well-structured comprehensive

QUESTIONNAIRE

The questions were designed keeping in view of the objectives of the study. Two sets of
questionnaires were developed, one for the bank customers and one for the bank execution. In
some cases, the researcher also had personal discussion with the respondents with the
objectives of soliciting additional information and using this information to supplement the
information collected through questionnaires. The final sets of questionnaires along with
covering letter were then mailed to a total of 1000 bank customers and 60 bank employees
selected via convenient sampling technique.

SECONDARY DATA

Secondary data is the data which is available in published form and which was collected
earlier by people for some purposes.
There may be various sources of secondary data such as

 Newspapers
 Magazines,
 Journals,
 Books,
 Reports, Documents And Other Published Information,
 Banks Annual Reports,
 Manuals And Brochures Of Banks
LIMITATIONS OF THE STUDY

 Investors who prefer steady income may not prefer equity shares.
 The cost of equity shares is higher than the cost of raising funds through other sources.
 The issue of additional equity shares dilutes the voting power and earnings of existing
equity shareholders.
 Many formalities and procedural delays are involved and they are time-consuming
processes
 CHAPTER- 2

REVIEW OF LITERATURE
TITLE OF THE PAGE : Stock Markets: An Overview and a Literature
Review

AUTHOR : Rjumohan asalatha

YEAR : 2019

ABSTRACT

Stock markets are without any doubt, an integral and indispensable part of a country's
economy. But the impact of stock markets on the country's economy can be different from
how the other countries' stock markets affect their economies. This is because the impact of
stock markets on the economy depends on various factors like the organization of stock
exchanges, its relationship with other components of the financial system, the system of
governance in the country etc. All of these factors are distinct for each country; therefore, the
impact of stock markets on a country's economy is also distinct. Over the years, the Indian
capital market system has undergone major fundamental institutional changes which resulted
in reduction in transaction costs, significant improvements in efficiency, transparency and
safety. All these changes have brought about the economic development of the economy
through stock markets. In the same way, economic expansion fuelled by technological
changes, products and services innovation is expected to create a high demand for stock
market development. The present paper is divided into two parts: in the first section, the
evolution of international stock markets and the developments in Indian stock markets are
briefly reviewed to help us understand how stock markets have emerged as the driving
economic forces that they are today; and the second part presents a number of studies that
review the impact of financial development, stock market development and its functions and
its possible impact on economic growth.
TITLE OF THE PAGE : INDIAN STOCK MARKET

AUTHOR : Ms. Anju bala

YEAR : 2013

ABSTRACT

Stock Market is one of the most vibrant sectors in the financial system, marking an important
contribution to economic development. Stock Market is a place where buyers and sellers of
securities can enter into transactions to purchase and sell shares, bonds, debentures etc. In
other words Stock Market is a plate form for trading various securities and derivatives.
Further, it performs an important role of enabling corporate, entrepreneurs to raise resources
for their companies and business ventures through public issues. Today long term investors
are interested to invest in the Stock market rather than invest anywhere. The Bombay Stock
Exchange (BSE), the National Stock Exchange (NSE) and the Calcutta Stock Exchange
(CSE) are the three large stock exchanges of Indian Stock Market. The main objective of
present study is to present review of literature related to Indian Stock Market to study the
Indian Stock Market in depth. The study would facilitate the reader to know the past, current
and future trend or prospects of Indian Stock market. This study would provide guidelines to
investor to maximise profit with minimize risks. High degree of volatility in the recent times
in the Indian market has led to more development in the future.
TITLE OF THE PAGE : Pricing of equity shares by unlisted companies impact
on government revenue

AUTHOR : Thukral, Rajansh

YEAR : 2015

ABSTRACT

Under Companies Act, 1956 (now Act of 2013) or rules made there under, there is no
mechanism to control pricing of equity shares issued by unlisted companies.Many of Closely
Held Unlisted Public Limited Companies and Private Limited Companies mobilize funds by
issuing shares at exorbitant rate of premium. They use small amount of Authorised Capital
and tend to avoid payment of authorised capital linked fees to Ministry of Corporate Affairs,
Government of India due to a regulatory gap. These companies also tend to avoid payment of
income tax to Ministry of Finance and payment of stamp duty to State Governments. It
appears that through this process some of the companies may be channelizing black money
into legal system. Through this study, an attempt has been made to study the comparison of
book value of pre-issue equity shares with issue price and consequent impact on Central
Government and State Government revenue in cases where pricing of equity shares at
premium was not justified by book value of pre-issue equity shares. This study covers 196
sampled Form 2 of 98 Closely Held Unlisted Public Limited Companies and 231 sampled
form 2 filed by 108 Private Limited Companies for issue of equity shares at premium with 24
offices of Registrar of Companies in whole of India during the period 01.04.2007 to
31.03.2012. Accounting, mathematical and statistical tools have been used to draw
conclusions. The results revealed that out of all 427 samples only in 62 samples (14.52%) the
issue price was less than the book value of pre-issue equity shares and in 365 cases (85.48%)
book value did not support issue of shares at premium. Out of total premium of Rs.16,365.11
crores collected from these 427 samples, Rs.14,826.28 crores (90.60%) is from 365 Form 2
where book value does not support issue price. If premium were part of Authorised Capital in
these cases, this may have generated revenue of Rs. 65.22 crores to central government in the
form of payment of Authorised Capital linked fees in termsof Schedule X of the Companies
Act, 1956. The impact on the State government’s revenue may be to the tune of Rs.8.35
crores.
TITLE OF THE PAGE : A STUDY ON FACTORS AFFECTING
INDIVIDUAL INVESTOR’S SENTIMENT TOWARDS EQUITY MARKET
AUTHOR : Mr. Rajeshkumar Dalpatram Kiri

YEAR : 2017

ABSTRACT

The Efficient Markets Hypothesis (EMH) has been a dominating theory among Economics
and financial theories, which suggests that market prices fully reflect all relevant information
(Fama, 1970). It has been used widely to theoretical models but empirical studies of equity
shares prices show disagreement on fundamental of the price-discovery process (Lo, 2007) as
per efficient market hypothesis. The EMH subsequently faced both theoretical and empirical
challenges and gradually loses its importance just as other once-fully supported economic
theories must encounter at some stage. The assumptions of EMH about the individual
investor s behaviour are often called into questions like rationality of individual investors,
irrelevance of irrational investors and perfectly working arbitrage. newlineThere is growing
body of both theoretical and empirical literature focuses now on testing the role of investor s
sentiment and its implication for financial market and organizations. This literature provides
evidences of market anomaly like excessive trading volatility, predictability in returns of
stock and investor s over or under reaction to corporate announcements. Consequently,
contemporary research shifted its focus on exploring drivers of their behaviours and its
implication for market efficiency. newlineThe traditional models analyze stock price
formation by quantitative and performance related factors but do not consider impact of
human behaviour. Hence, the traditional models are not able to explain fully the movement in
share prices. It is advocated that the transition in investor s sentiment may offer better
justification of short term movements in equity share prices, than any other set of
fundamental factors. It is therefore suggested that understanding investor s sentiment would
provide a superior explanation of stock price performance. Technical analysis considers that
human behaviour has an impact on stock prices but it does not incorporate clear explanation
on factors affecting investor s sentiment. Against this backdrop, it
 TITLE OF THE PAGE : A Study on Analysis of Equity Share Price Behavior
of the Selected Industries

AUTHOR : Mrs. Vimala. S

YEAR : 2014

ABSTRACT

A capital market is a market for securities (debt or equity), where business enterprises
(companies) and governments can raise long-term funds. Among the developing countries
India has received considerable capital inflows in recent years. The factors such as Inflation,
Interest rates, Deflation and Exchange rates influence the stock prices. Among the developing
countries India has received considerable capital inflows in recent years. The Economy of the
country is mainly based on the development of the corporate sectors. A better understanding
of the stock market trend will facilitate allocation of financial sources to the most profitable
investment opportunity. The behavior of stock returns will enable the investors to make
appropriate investment decisions. The fluctuations of stock returns are due to several
economic and non-economic factors. The study is aimed at ascertaining the behavior of share
returns. This paper analyses the equity share fluctuations in India Selected Industry. It also
measures the strength of the trend and the money involved in investing in the stocks. Simple
moving average model is applied for selected companies which would give the investor a sell
signal or buy signal. Speculation involves higher risks to get return on the other hand
investment involves no such risks and returns will be fair. An investor can succeed in his
investment only when he is able to select the right shares. The investors should keenly watch
the situations like market price, economy, company progress, returns, and the risk involved in
a share before taking decision on a particular share. This study made will help the investors
know the behavior of share prices and thus can succeed.
TITLE OF THE PAGE : Literature review on Investment Pattern and
Performance of Selected Equity Mutual funds in India

AUTHOR : Priyanka G. Bhatt

YEAR : 2015

ABSTRACT

Loomba (2011) evaluates the performance and growth of Indian mutual funds vis-à-vis the
Indian equity market. The overall analysis finds that Nifty returns outperformed Franklin
Templeton Large Cap Equity Scheme returns. Kruskal Wallis H-test was applied to know
whether the returns significantly differ or not and the results indicated that the returns of
schemes don’t differ significantly.

Jain and Gangopadhyay, (2012) analysis of Equity Based Mutual Funds in India attempted
to analyze the performance of equity based mutual funds. The analysis has been made using
the risk-return relationship and Capital Asset Pricing Model (CAPM). The overall analysis
finds that HDFC and ICICI have been the best performers, UTI an average performer and
LIC the worst performer which gave below- expected returns on the risk-return relationship.
TITLE OF THE PAGE : A Study on Impact of Company Specific News on
Investors Decision in India

AUTHOR : DIVYANG JOSHI

YEAR : 2018

ABSTRACT

Background: In recent years, huge volume is observed in financial news. Earlier, the financial
news were restricted to the print media only but now trend has changed. The electronic media
have increased the coverage of financial news. It becomes very complex for the investors to
take investment decision because of huge flow of information. In this scenario, it becomes
essential to learn the impact of financial news in particular company specific news on the
stock prices. There are many factors which have impact on the stock prices like global
factors, economic factors, industry specific factors, company specific factors, market
capitalization of stock, liquidity of stock, historical return, management of company, product
and services of the company, investor behavior and many more. Investors’ reaction at the
time of news announcements are reflected in the stock prices. Ability to understand the price
behavior during the event announcement and after the news announcement can facilitate to
earn better earning to the investors. Fundamental and Technical analysis can assist investors
in finding undervalued stocks and earning good return. If investors are able to learn the
reaction of stock during news announcement it can also help in earning good return. The
event study can help in measuring the impact of news. But it is very essential to understand
the sentiment of news. The news can be classified as positive news, negative news or neutral
news based on the sentiments. As per (Chiang (2010)), good and bad news have positive and
negative impact on the investors’ sentiments respectively. Even the magnitude of reaction of
good/bad news is different during the bull and bear trend of the stock market. There are many
research studies carried out to understand the investors’ psychology with the help of event
analysis. But a few research studies carried out in India focused on the impact of company
specific NEWS on investors’ decisions with the application of sentiment analysis.
TITLE OF THE PAGE : Analyzing the Impact of Dividend on Market Value of
Equity Shares of Selected Pharmaceutical Companies in India

AUTHOR : Bhuva, Krunal

YEAR : 2016

ABSTRACT

This study focused on analyzing the impact of announcement of dividend made by selected
Pharmaceutical companies during 2004-2013 on prices of shares and its traded volume of
shares. 15 selected pharmaceutical companies based on Market Capitalization for the study
period. OBJECTIVES: The primary objective of this study was to examine the impact of
dividend announcement on selected pharmaceutical companies’ Equity shares. METHODS:
Dividend is considered as event for the equity market so to test the event study paired t-test
has been used to measure the impact on share price after announcement of dividend made by
companies. Correlation has been used by researcher to identify correlation between prices
and number of shares traded before and after announcement of dividend. To test the
significance impact of percentage of dividend payment on the value of shares ANOVA has
been used by researcher for the selected sample pharmaceutical companies. RESULTS: The
study revealed that 10 out of 15 selected Sample Company; there is positive change in the
average price of shares after announcement of the dividend of pharmaceutical companies.
The results also showed that 11 out of 15 selected sample company, there is negative change
in the price of shares after effective dates of dividend. CONCLUSIONS: By conducting
research it can be concluded that share prices of selected pharmaceutical companies have
shown significant positive impact after announcement of dividend where as negative impact
have been observed after effective date of dividend. No significant impacts on the volume of
shares traded have been observed in pharmaceutical shares. By applying ANOVA the results
shows that percentage of dividend does not have any impact on changes in the share prices of
 CHAPTER-III
INDUSTRY PROFILE
&
COMPANY PROFILE
History of Stock Broking

The history of stock brokers can be traced back to the origins of the first stock exchange

in 1602 at Amsterdam. Even before that brokers are said to have existed in France dealing
with government securities. The Amsterdam Stock Exchange was involved in buying and
selling of Shares for the Dutch East India Company. However, the first real stock exchange
came up in Philadelphia in the United States during the late 18th century. Later it was the
New York stock exchange which saw a rise in its popularity. Wall Street, as it was called,
became the hub of brokerage activities. Earlier stockbrokers were largely unorganized, but
later most of them joined hands to form institutes andorganizations.Till the 1980's stock
broking services were used only by the wealthy class who could afford them. Later with the
advent of the Internet, stock broking became very easy. Thus, the price tag on stock brokers
lowered considerably and their services became available even to the common man. The
stock broking duties are now mostly taken up by major organizations with the smaller
companies being absorbed by them. In India, too with increasing globalization.

HISTORY OF THE INDIAN STOCK MARKET - THE ORIGIN

One of the oldest stock markets in Asia, the Indian Stock Markets has a 200 years old history.

Year 1800 : East India Company was the dominant institution and by end of the

Century, business in its loan securities gained full momentum.

Year 1830 : Business on corporate stocks and shares in Bank and Cotton presses

Started in Bombay.

Year 1840 : Recognition from banks and merchants to about half a dozen brokers

Year 1850 : Rapid development of commercial enterprise saw brokerage business

Attracting more people into the business

Year 1860 : The number of brokers increased to 60

Year 1860-61 : The American Civil War broke out which caused a stoppage of cotton
 Supply from United States of America

Year 1862-63 : The number of brokers increased to about 200 to 250

Year 1865: A disastrous slump began at the end of the American Civil War

POST INDEPENDENCE SCENARIO

The depression witnessed after the Independence led to closure of a lot of exchanges in the
country. LahoreStock Exchange was closed down after the partition of India, and later on
merged with the Delhi Stock Exchange.Bangalore Stock Exchange Limited was registered in
1957 and got recognition only by 1963. Most of the otherExchanges were in a miserable state
till 1957 when they applied for recognition under Securities Contracts(Regulations) Act,
1956.

The Exchanges that were recognized under the Act were:

1. Bombay

2. Calcutta

3. Madras

4. Ahmedabad

5. Delhi

6. Hyderabad

Many more stock exchanges were established during 1980's, namely:

 Cochin Stock Exchange (1980)

 Uttar Pradesh Stock Exchange Association Limited (at Kanpur, 1982)
 Pune Stock Exchange Limited (1982)
 Ludhiana Stock Exchange Association Limited (1983)
 Gauhati Stock Exchange Limited (1984)
  Kanara Stock Exchange Limited (at Mangalore, 1985)
 Magadh Stock Exchange Association (at Patna, 1986)
 Jaipur Stock Exchange Limited (1989)
 Bhubaneswar Stock Exchange Association Limited (1989)
 Saurashtra Kutch Stock Exchange Limited (at Rajkot, 1989)
 Vadodara Stock Exchange Limited (at Baroda, 1990)
 Coimbatore Stock Exchange
 Meerut Stock Exchange

BSE Limited, formerly known as the Bombay Stock Exchange is an Indian stock located

on Dalal Street in Mumbai. Established in 1875,[5] it is Asia's oldest stock exchange.[6] The

BSE is the world's 7th largest stock exchange with an overall market capitalization of more

than US$2.8 trillion on as of February 2021.[3]

While Bombay Stock Exchange Limited is now synonymous with Dalal Street, it was not

always so. In the 1850s, five stock brokers gathered together under Banyan tree in front of

Mumbai Town Hall, where Horniman Circle is now situated.[7] A decade later, the brokers

moved their location to another leafy setting, this time under banyan trees at the junction of

Meadows Street and what was then called Esplanade Road, now Mahatma Gandhi Road.

With a rapid increase in the number of brokers, they had to shift places repeatedly. At last, in

1874, the brokers found a permanent location, the one that they could call their own. The

brokers group became an official organization known as "The Native Share & Stock Brokers

Association" in 1875.[8]

The Bombay Stock Exchange continued to operate out of a building near the Town Hall until

1928. The present site near Horniman Circle was acquired by the exchange in 1928, and a

building was constructed and occupied in 1930. The street on which the site is located came

to be called Dalal Street in Hindi (meaning "Broker Street") due to the location of the
exchange.On 31 August 1957, the BSE became the first stock exchange to be recognized by

the Indian Government under the Securities Contracts Regulation Act. Construction of the

present building, the Phiroze Jeejeebhoy Towers at Dalal Street, Fort area, began in the late

1970s and was completed and occupied by the BSE in 1980. Initially named the BSE Towers,

the name of the building was changed soon after occupation, in memory of Sir Phiroze

Jamshedji Jeejeebhoy, chairman of the BSE since 1966, following his death.

In 1986, the BSE developed the S&P BSE SENSEX index, giving the BSE a means to

measure the overall performance of the exchange. In 2000, the BSE used this index to open

its derivatives market, trading S&P BSE SENSEX futures contracts. The development of

S&P BSE SENSEX options along with equity derivatives followed in 2001 and 2002,

expanding the BSE's trading platform.

Historically an open outcry floor trading exchange, the Bombay Stock Exchange switched to

an electronic trading system developed by CMC Ltd. in 1995. It took the exchange only 50

days to make this transition. This automated, screen-based trading platform called BSE On-

Line Trading (BOLT) had a capacity of 8 million orders per day. Now BSE has raised capital

by issuing shares and as on 3 May 2017 the BSE share which is traded in NSE only closed

with ₹999.[9]The BSE is also a Partner Exchange of the United Nations Sustainable Stock

Exchange initiative, joining in September 2012.[10]

BSE established India INX on 30 December 2016. India INX is the first international

exchange of India.[11]

BSE launches commodity derivatives contract in gold, silver.

National Stock Exchange of India Limited (NSE) is the leading government owned stock

exchange of India, located in Mumbai, Maharashtra. NSE was established in 1992 as the first

dematerialized electronic exchange in the country. NSE was the first exchange in the country

to provide a modern, fully automated screen-based electronic trading system that offered easy

trading facilities to investors spread across the length and breadth of the country. Vikram

Limaye is Managing Director & Chief Executive Officer of NSE.National Stock Exchange

has a total market capitalization of more than US$2.27 trillion, making it the world's 11th-

largest stock exchange as of April 2018.[1] NSE's flagship index, the NIFTY 50, a 50 stock

index is used extensively by investors in India and around the world as a barometer of the

Indian capital market. The NIFTY 50 index was launched in 1996 by NSE.[2] However,

Vaidyanathan (2016) estimates that only about 4% of the Indian economy / GDP is actually

derived from the stock exchanges in India.[3]Unlike countries like the United States where

nearly 70% of the country's GDP is derived from large companies in the corporate sector, the

corporate sector in India accounts for only 12-14% of the national GDP (as of October 2016).

Of these only 7,800 companies are listed of which only 4000 trade on the stock exchanges

at BSE and NSE. Hence the stocks trade at the BSE and NSE account for only around 4% of

the Indian economy, which derives most of its income-related activity from the so-called

unorganized sector and household spending.

“Success is a journey not a destination” If we look for examples to prove this quote then we
find many but there is none like that of KARVY. Back in the year 1981,five people created
history by establishing KARVY AND COMPANY which is today known as KARVY,the
largest financial service provider of India. SUCCESS SUTRAS OF KARVY -: The success
story of Karvy id driven by 8 success sutras adopted by it namely-

 Trust

 Integrity

 Dedication

 Commitment

 Enterprise

 Hard work and Team-play

 Learning and Innovation

 Empathy and Humility

OUR STORY

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.

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
investments 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.

Scalability. Flexibility. Adaptability

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

 Stock Broking
 Depository Participants
 Wealth Management
 Commodities Broking
 Currency Derivatives
 Non-banking Financial Services
 Distribution of Financial Products
 Business Partners & Associates
 Investment Banking
 Realty Services
 Portfolio Management Services
 Insurance Repository
 The Finapolis
 Forex & Currencies

Non-Financial Services

 Data Management Services

o E-Governance
o Banking Services
o KYC Registration
o IT & Allied Services
o E-commerce Services
o Customer Support Services
o GST Suvidha Providers
 International Business
 Data Analytics
 Market Research
 Renewable Energy / Solar
 HR & Recruitment Services
 Manufacturing & Assembling of Mobile Handsets & Computer Peripherals
KARVY – LEADING FINANCIAL SERVICES GROUP

The Karvy Group is today a well diversified conglomerate. Its businesses straddle the entire
financial services spectrum as well as a host of non-financial services. Recently, the Group
has diversified into data analytics, market research and alternate energy (solar).

OUR SERVICES

KARVY is a leading financial services company in india. We help you to manage the
uncertainties in business in the
financial services industry..

WHAT MATTERS TO YOU

You have your unique priorities. Tell us what is most important to you and we will guide you
to align your priorities to the best solution.

EQUITY BROKING SERVICES

Our equity advisors will help you time the market better with their expert guidance and
ensure that you make smart decisions.

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.

We cover a wide range of sectors and companies which are categorised 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.

PROMOTERS & MANAGEMENT TEAM

MR.C.PARTHASARATHY
Chairman, Karvy Group
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 has 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.P.B.RAMAPRIYAN
CEO, Distribution & Allied Businesses

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.DEEPAKGUPTA
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.KRISHNAHARI
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.

AWARDS & ACCOLADES

Over the last 35 years Karvy has won many awards and accolades for most business verticals.
However, according to us these are not our most important rewards and an acknowledgement
of our services. For us it is the smile of gratitude from a customer or client that gives us
immense pleasure and a reason to outperform ourselves.
KARVY FINTECH – MONTH OF AUGUST -2019

Karvy Fintech has been lauded the title of ‘Great Place to Work.’ On being certified as a
great place to work, Karvy Fintech excelled in the five major elements; Credibility, Respect,
Fairness, Pride and Camaraderie, the collaboration of which builds great organizations to
work at.

KSBL-AWARD MONTH OF FEBRUARY -2019

Vantage, a bimonthly magazine by Karvy Private Wealth has won a coveted Award by
Kamizake B2B Media as the “Best External Publication of the Year” at Corporate
Communication & PR Summit & Awards function held in Delhi on 9th January 2019.

KARVY COMMODITIES – MONTH OF MAY 2019

Karvy Comtrade Limited has bagged the award of Leading Commodity Research House from
Multi Commodity Exchange of India for second consecutive year at The Leela, Mumbai on
26th April 2019. The award was received by Mr. Ramesh Varakhedkar, Vice President –
Karvy Comtrade Ltd.

KARVY COMTRADE AWARD MONTH OF OCTOBER -2018

Karvy Comtrade Ltd. bagged the award of “Best Financial Service Provider” from
ASSOCHAM in the 11th International Gold Summit at Hotel Shangrila Eros, New Delhi on
19th September 2018. The award was received by Mr. Pradip Kumar Singh, Regional Head,
Commodities, Delhi and NCR and Mr. Anurag Pandey, KSBL Currency Derivatives
Segment.

To recognise the important role Karvy Comtrade played in agricultural trades and to celebrate
their contribution towards catalysing growth in farm incomes, NCDEX announces winners
of “KRISHI PRGATI AWARDS,2017”. 

Karvy Comtrade Ltd has always been a pioneer in agri and related businesses at NCDEX,
bagged the trophy which was handed over by Cabinet Minister for Consumer affairs, Food
and Public Distribution Mr. Ram Vilas Paswan and Union Minister of State Mr. Arjun Ram
Meghwal.
KARVY COMTRADE AWARD MONTH OF JUNE-2018

Karvy Comtrade Limited has bagged the award of Leading Commodity Research House from
Multi Commodity Exchange of India at The Leela, Mumbai on 4th May 2018. The award
was received by Mr. Ramesh Varakhedkar, Vice President – Karvy Comtrade Ltd., Mr.
Veeresh Hiremath, Head – Commodity Research.
 CHAPTER-IV
DATA ANALYSIS
AND
INTERPRETATION
A mutual fund is a company that collects money from investors and invests that amount in
securities such as stocks, bonds, and short-term money market instruments. All the holdings
of the mutual fund together are known as its portfolio which is managed by qualified and
experienced personnel known as a fund manager. Each security held by the investors by
investing in a mutual fund represents their part ownership in the fund and the income
generated henceforth.

Likewise, an equity mutual fund scheme invests predominantly in a set of stocks. Depending
on the investment objective, the investment strategy of the fund, the fund manager may invest
your funds in pooled assets in a category of stocks.

Based on asset classes, mutual fund schemes can be loosely divided into three categories:

1. Equity Schemes - Funds that mainly invest in shares of equity

2. Debt Schemes - Funds that mainly invest in debt securities

3. Hybrid Schemes - Funds loving the versatility of allocating their assets between
equity/debt according to the purpose of the scheme.

At Karvy, our Expert Analysts do extensive research to provide you the best so that it
becomes easier to choose a scheme that fulfils your need and goals.
 We offer:

 Mutual Fund Schemes from 35+ AMCs

 Research Reports (Existing Schemes, NFOs, Performance Reports, etc.)
 Portfolio Re-balancing (based on dynamic market conditions and ongoing trends)
 Top Mutual Funds based on Ratings and Performance

EFFICIENTLY TRADE IN EQUITY WITH KARVY

POWERFUL RESEARCH

Our team of expert researchers provide over 20 daily research reports along with several

other weekly, monthly, thematic, strategy, technical, fundamental, special and

seasonal reports.

ASSISTED TRADING OPTIONS

We enable you to trade with low connectivity with the help of our advisory desk, call and

trade and SMS trade options.

TRADING PLATFORMS

We provide technically advanced mobile trading application, desktop application and

browser based trading tool to connect you seamlessly to the market and facilitate smooth and

prompt equity trading.

QUICK QUERY RESOLUTION

We offer service support in the form of calls, chats, sms and video calling to provide you

with the best solutions to your queries.

MUTUAL FUND RECOMMENDATIONS

Invest in mutual funds that are huge potential to generate superior returns in the future. We
have done extensive research and short listed few schemes for you based on various
parameters like past performance during different markets cycles, Portfolio Allocation, Fund
Manager track record etc. The recommended schemes are consistently out performers among
its peers and benchmark indices. If you want to invest in these top performers, click on invest
now option.

 SBI Magnum Multicap

 ICICI Prudential Bluechip Fund

 Motilal Oswal Multicap 35 Fund

 SBI Bluechip Fund

 HDFC Hybrid Equity Fund

 L&T India Value Fund

TOP PERFORMING MUTUAL FUNDS: EQUITY

Value Invest Mar 26, 2018
6

Series 1
3
Series 2
Series 3
2

0
Category 1 Category 2 Category 3 Category 4

KARVY VALUE INVEST - MARCH 2018

 100%

90%

80%

70%

60%
Series 3
50% Series 2
Series 1
40%

30%

20%

10%

0%
Category 1 Category 2 Category 3 Category 4

PRODUCTS OFFERED BY KARVY STOCK BROKING-:

Karvy offering one of the widest arrays of products and not being tied up to any one partner
in any product category are strengths of the Karvy.
  EQUITY INVESTMENTS

 DEBT INVESTMENTS

 ALTERNATE ASSETS

 MUTUL FUNDS

 INSURANCE

EQUITY INVESTMENTS

Karvy Private Wealth offers the option of purchasing equities to build clients portfolio or to
avail of clients comprehensive trading solutions in the cash and F&O segments, with an
online and offline facility. Karvy experienced team of Research Analysts and Advisors guide
the clients with appropriate customised solutions, backed by in-depth research. Karvy broad
equity investment strategies are derived from understanding individual client profiles and
risk-return expectations. It constantly help the client with strategies for investments in
equities, trading in derivatives, hedging etc. Karvy constantly monitor their client’s portfolios
and suggest portfolio rebalancing based on the quality of stocks and their risk appetite.

5
4.5
4
3.5
3 Series 1
2.5 Series 2
2
1.5 Series 3
1
0.5
0
Category 1 Category 2 Category 3 Category 4
 CHAPTER-V
FINDINGS, SUGGESTIONS &
CONCLUSIONS
FINDINGS
 Both male and female investors’ concern about considering past dividends paid by
companies while investing in equity shares.
 Those companies which pay higher rate of dividends are considered good for
investment purpose
 Since behavioural finance is a new and promising branch of finance, financial
advisors should scan the behaviour of investors and their preferences particularly the
urban investors when trading in mutual funds, stocks and investing in other financial
alternatives
 There are some investments which are risky and few are not, so depending upon the
age, the investors they should decide about the degree of risk to be taken
CONCLUSION
 Equity overall reflects the value that would be returned to a company's shareholders
or investors

 If all of the assets were to be liquidated and all of the company's debts were paid off.

 It also represents the shareholders' stake in the company, identified on the company's
balance sheet.
 BIBLIOGRAPHY

BOOKS:

 FINANCIAL ACCOUNTING AND CMA: S. P. JAIN

 COST ACCOUNTING: SIMMI AGARWAL

 Donald E.Fisher, V.K. Bhalla

NEWSPAPERS:

 FINANCIAL EXPRESS

 THE HINDU

 BUSINESS STANDARD

WEBSITES:

 www.bseindia.com

 http://ww12.shodhganga.com/

 https://financialaccounting.com/

 www.financeyahoo.com

 www.karvy.com