A

Summer Project Report

On
A study on awareness and accessing behavior of
Demat Account
At
KARVY STOCK BROKING LTD.
Submitted By
Shivangini Bhaskar
Under The Guidance of
INSTITUTE OF PRODUCTIVITY AND MANAGEMENT
Under The Supervision:
Branch Manager
Karvy Stock Broking
Submitted To:
INSTITUTE OF PRODUCTIVITY AND MANAGEMENT
LUCKNOW

BATCH=2013-2015



ACKNOWLEDGEMENT
Sometimes words fall short to show gratitude, the same happened with me during this project.
The immense help and support received from KARVY STOCK BROKING LIMITED overwhelmed
me during this project.


My sincere gratitude to (Branch Manager,Karvy) and
(Director, 0F IPM Lucknow), for providing me with an opportunity to
work with Karvy Stock Broking Limited.

I am highly indebted to MUKESH SINGH, Dheerendra Kumar and Nidhi Singh(Relationship
officer) who has provided me with an necessary information and their valuable suggestion and
comments on bringing out this report in the best possible way.

I also thank faculty guide (IPM, Lucknow) who has sincerely supported me with the valuable
insights into the completion of this project.

Last but not the least; the heartfelt love for my parents, whose constant support and blessings
helped me throughout this project.







PREFACE
Private sector is one of the fastest growing sectors in the country. After the liberalization the
private industry still holds vast opportunities for young and experienced professional. Among
the Private Stock Broking Companies KARVY STOCK BROKING LIMITED is the key player and
has been making efforts to improve efficiency and customer services.

There are many companies in the market which are providing the financial product like:
Insurance, mutual funds, deemat account services, general insurance, portfolio management
services, wealth management, gold coins, money changing, money transfers and the others.
Including Deemat Account Services Karvy Stock Broking Limited offers stock broking services,
mutual fund services, insurance, commodity, IPO services, gold coin exchange and foreign
exchange services and PAN Service below the single roof.
Hence,Karvy Stock Broking Limited provides many financial products on the single window. It
consists of 7 units namely:
Stock Broking Services
Demat
Mutual Funds
IPO
Commodity
Forex
Gold

I am fortunate enough to get opportunity of my Summer Training in the Karvy Stock Broking
Limited.





OBJECTIVE OF TRAINING


The objectives of my project include the following:-
The main objective of study is to know about the potential of the market regardings
people dealingin share market.


To know the role of DEMAT ACCOUNT.


To know the procedure of opening DEMAT ACCOUNT.


The objective is to know that how many people in the city are aware of the KARVY
STOCK BROKING.


To know where people have already opened their demat account and on what basis.
















SCOPE OF THE STUDY

The scope of the study refers to the job that to know about the activities of the organization.
The study means that the analysis of the products of the company on which he/she has to
focus.

During the summer training the volunteer has to find out the
corporate strategies of the running company and the mile stone which the company has
covered during its journey. In the summer training, it is necessary for the student that he/she
involves with the experience about the company. That is how the company got success, Or if it
is going in the loss, why.

In my training
period I have found that the Karvy group is the biggest group in Indian companies. I felt that I
can learn the more in Karvy Stock Broking Limited.

Karvy Stock Broking
Limited is the part of the Karvy Group Of Companies which is a growing company in the
financial products.














INTRODUCTION
OF
THE
INDUSTRY







HISTORY OF STOCK EXCHANGE IN INDIA
Stock markets refer to a market place where investors can buy and sell stocks. The price at
which each buying and selling transaction takes is determined by the market forces (i.e.
demand and supply for a particular stock).
Let us take an example for a better understanding of how market forces determine
stock prices. ABC Company Ltd. Enjoys high investor confidence and there is an anticipation of
an upward movement in its stock price. More and more people would want to buy this stock(
i.e. high demand) and very few people will want to sell this stock at current market price (i.e.
less supply) . Therefore buyers will have to bid a higher price for this stock to match the ask
price from the seller which will increase the stock price of ABC Company Ltd. On the contrary, if
there are more sellers than buyers(i.e. high supply and low demand) for the stock of ABC
Company Ltd. In the market, its price will fall down.
In earlier times, buyers and sellers used to assemble at stock exchanges to make a
transaction but now with a down of IT, most of the operations are done electronically and the
stock markets have become almost paperless. Now investors dont have to gather at the
exchanges, and can trade freely from their home or office over the phone or through internet.



























INTRODUCTION
TO
THE
COMPANY















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

These are values that bind success with Karvy.

VISION OF KARVY -:

To achieve and sustain market leadership,karvy shall aim for complete customer satisfaction,by
combining its human and technological resources, to provide world-class quality services.
In the process Karvy shall strive to meet and exceed customers satisfaction and set industry
standards.


MISSION STATEMENT -:

Our Mission Is to be a leading and preferred service provider to our customers,
and we aim to achieve this leadership position by building an innovative
enterprising and technology driven organization which will set the highest
standards of service and business ethics.


COMPANY OVERVIEW-:

Karvy was established as Karvy and company by 5 Chartered Accountants during the year 1979-
80, and then its work was confined to audit and taxation only. Later on it diversified into
financial and accounting services during the year 1981-82 with a capital of Rs. 1,50,000,it
achieved its first milestone after its first investment in technology.Karvy became a known name
during the year 1985-86 when it forayed into capital market as registrar.
EVOLUTION OF KARVY-:

It is well said that success is a journey and not a destination and we can see it being proved by
Karvy.Under this section we will see that how this karvy and company of 1980 became
karvy of 2008. Karvy-
Blommed with the setting up of its first branch at Mumbai during the year 1987-88.

The turning point came in the year 1989 when it decided to enter into one of the not
only emerging rather potential field too i.e. stock broking.

It added the feather of stock broking into its cap.

At the same time it became the member of Hyderabad Stock Exchange through
associate firm karvy securities ltd. and then Karvy never looked
back..

It went on adding services one after another,it entered into retail stock broking in the
year 1990.

Karvy investor service centres were set up in the year 1992.

Karvy which enjoyed the network through its investor service centers,entered into
financial product distribution services in the year 1993.

In 1994, Karvy was dealing into mutual fund services.

In 1995, Karvy stepped into corporate finance and investment banking.


Karvys strategy has always been being the first entrant in the market.Karvy again hit the
limelight by becoming the first registrar in the country to be awarded ISO 9002 in the year
1997. Then it stepped into the other most happening sector i.e. IT enabled services by
establishing its own BPO units and at a gap of just 1 year it took the path of e-business.
Then it entered into the field of Insurance services in the year 2001 with
the launch of its retail arm Karvy- the finapolis : your personal finance advisor


It was a decade which saw many Indian Companies going globalso why the largest
financial service provider of India should lag behind? Hence, Karvy launched Karvy Global
Services Limited after entering into joint venture with Computershare,Australia in the year
2004. In the year 2004, also saw Karvy entering into commodities marketing through KARVY
COMTRADE.

Year 2005 saw-
Karvy establishing a separate branch for its insurance services under the head Karvy
insurance broking ltd.

PCG group of Hongkong acquired 25% stake at KSBL,after being impressed with the
growth of Karvy Stock Broking Ltd.

Year 2006 saw-
Karvy entered into one of the hottest sector of present time i.e. real estate through
Karvy realty & services(India) ltd.

Hence, we can see now Karvy being established as the largest financial service provider of the
country.

10 HIGHLY REOWNED ENTITIES OF KARVY GROUP ARE-
KARVY
CONSULTANTS LTD.
The first securities registry to receive ISO 9002 certification in India. Registered with SEBI as
Category I registrar is number 1 registrar in the country. The award of being Most Admired
Registrar is one among many of the acknowledgements they received for their customer
friendly and competent services.
KARVY
STOCK BROKING LTD.
Karvy stock broking ltd.consists of five units namely stock broking services, depository
participant, advisory services and private client groups.
KARVY
INVESTOR SERVICES LTD.
It is registered with SEBI as a category I merchant banker. Its cliental includes leading corporate,
State Governments, Foreign institutional investors, public and private sector companies and
banks, in Indian and Global Markets.

KARVY
GLOBAL SERVICES
Karvy global is a leading business and knowledge process outsourcing. It operate in banking
and financial services,insurance,healthcare and pharmaceuticals,media,telecom and
technology.
KARVY
REALITY AND SERVICES
It is engaged in the business of Real Estate and Property Services offering-
Buying/Selling/Renting of properties
Identifying valuable investment opportunities in the real estate sector
Facilitating financial support for real estate and investment in properties
Real estate portfolio advisory services

KARVY
COMTRADE
Karvy Comtrade Limited (KCTL) is Indias 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).
Using a superior trading platform, we facilitate futures trading in commodities as per the
exchanges. KCTL offers both trading and exclusive research services to its clients. A subsidiary of
Karvy Stock Broking Limited (KSBL), KCTL commenced operations in early 2005.
KARVY
FINANCIAL SERVICES
The KARVY Group, a pioneer in financial services in India, has forayed into the retail finance
space with its Non Banking Financial Corporation (NBFC) Karvy Financial Services Ltd or Karvy
Finance. Karvy Finance has a vision to be a leading loans provider delivering superior value to all
stakeholders. Karvy Finance offers a complete bouquet of financial services products to its
customers with secured lending products (such as Securities Finance, Secured Business Loans
against Property and Gold Loans).
KARVY
CAPITAL LTD.
Karvy Capital is the Asset Management and Investment Advisory arm of Karvy Group, a 30 year-
old diversified financial services conglomerate in India with presence in Stock Broking, Registry
Services, NBFC, Debt Services, Commodities Broking, Data Management, Institutional Equities,
Investment Banking, amongst others.
KARVY
COMPUTERSHARE LTD.
It is a joint venture between Computershare,Australia and Karvy Consultants Ltd.,India is a
registry management services industry.
KARVY
DATA MANAGEMENT SERVICES LTD.
It is emerging as a leading service provider in the area of e-goverence processing,insurance
back office processing,record keeping,Data management requirements of large corporate.



ORGANIZATION STRUCTURE OF KARVY
Talking about the structure of KARVY,we have the board of directors as superme governing
body-
CHAIRMAN - C.PARTHASARTHY
MANAGING DIRECTOR -V.MAHESH
DIRECTOR -V.GANESH
DIRCTOR -J.RAMASWAMY
DIRECTOR -RAJAT PARTHARVATHY
The board of directors head the karvy group,karvy computer shares limited,karvy investors
services limited,karvy comtrade,etc.
Karvy group being the flagship company looks after the functional departments such as-
corporate affairs, group human resources, finance and accounting, training and development,
technology services and corporate quality.
KARVY STOCK BROKING SERVICES-
It is an undisputed fact that stock market is unpredictable and yet enjoys a high success rate as
a wealth management and wealth accumulation option. The difference between
unpredictability and safety anchor in the market is provided by in-depth knowledge of market
functioning and changing trends, planning with foresight, options with care.
Karvy offer services that are beyond just a medium for buying and selling stocks and
shares. Instead they provide services which are multidimensional and multi-focused in their
scope.
Karvy-
Trade on a vast platform-National Stock Exchange and Bombay Stock Exchange.
Highly skilled research team, comprising of technical analysis as well as fundamental
specialists, secure result oriented information on market trends.
Crucial information is given as a constant feedback to our customers, through daily
reports delivered thrice daily ; The Pre-session report, where market scenario for the
day is predicted. The Mid session report, where the market forecast for the rest of the
day is given. The Post-session report, where the market and report itself is reviewed.
Karvy Stock Broking publish a monthly magazine-KARVY FINOPOLIS, which analysis the
latest trend in stock market and takes a close look at the various investment options.
Karvy stock broking services are widely network across India, with the number of trading
terminals providing retail stock broking facilities.


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 helpthe client with strategies for investments
in equities, trading in derivatives, hedging etc. Karvy constantly monitor their clients portfolios
and suggest portfolio rebalancing based on the quality of stocks andtheir risk appetite.

DEBT INVESTMENTS
Karvy offer comprehensive solutions in the fixed income segment. Karvy in house team of
analysts guides you with tailor-made solutions depending on clients needs and risk profile.
Karvy help their clients choose best investment options in primary market segment based on
their needs.
Fixed Deposits

National Savings Certificate


Post Office Monthly Income Scheme

Public Provident Fund

ALTERNATE ASSETS
Alternative Assets are focused tools for customizing client portfolios, depending on the unique
needs of each client.
Structured Products

Private Equity

Real Estate

Gold

Commodities

Managed Futures


MUTUL FUNDS
Karvy experts advice their clients for their investments in equity and debt marketsthrough
Mutul Funds.Karvy experts advice their best to the clients that suit them best and help them to
reach their financial goals.Karvy help them ascertain their risk profile and guide them with the
right product mix which reduce their tax liability and increase their savings.
Classification of Mutul Funds-
By Structure
Open-ended scheme
Close-ended scheme
Interval scheme
By investment objectives
Growth schemes
Balanced schemes
Income schemes
By other schemes
Tax szvings schmes
Special schemes

INSURANCE
At Karvy, they help their client carefully plan there insurance needs and pick the right policies to
suit their objectives while covering the risks to the clients valuable life and assets. Moreover, a
decision on insurance is not a stand-alone decision but is taken keeping in mind many issues
revolving around clients liabilities, income, retirement, standard of living, dependents and
objectives in life.Karvy do an insurance sufficiency check to understand if the client is
over/under insured and subsequently devise an insurance plan for the client, backed by our
strong research on insurance across all categories.
Insurance also plays a major role in portfolios as a tool for wealth creation and in our
endeavour to bring client the best,karvy would provide them with products of all major Life and
General Insurance companies, research reports on recommended products, comparisons
between products from different providers and news and expert views on innovative products.
Life Insurance Products
Term plans, Whole life plans, Endowment Plans, Unit Linked Endowment Plans, Pension Plans,
Child Plans and others.

General Insurance Products
Health Insurance, Vehicle Insurance, Accident Insurance and others.

DEMAT ACCOUNT






INTRODUCTION
The trading on stock exchanges in India used to take place through open out-cry without use of
information technology for immediate matching or recording of trades. This was time
consuming and inefficient. This imposed limits on trading volumes and efficiency. In order to
provide efficiency, liquidity and transperancy,NSE introduced a nation-wide on-line fully
automated screen-based trading system where a member can punch into the computer
quantities of securities and the prices at which he likes to transit and the transaction is
executed as soon as it finds a matching scales or buy order from a counter party. Following are
some points-
Screen based electronic system electronically matches orders on a strict time/price
priority and hence cut down on time,cost,and risk of error, as well as on fraud resulting
in improved operational efficiency.
It enables markets participants, irrespective of their geographical locations, to trade
with one another simultaneous, improving the depth and liquidity of market.
It provides full anonymity by accepting orders, big or small, from members without
revealing their identity, thus providing equal access to everybody.
The sucked liquidity from other exchanges and in the very first year of its
operations,NSE became the leading stock exchange in the country. Today India can
boost that almost 100% trading take place through electronic order matching.
Dematerialization of shares is introduced a new concept which converts paper based
physical trading into electronic trading.
It is a safe and convenient way to hold securities.
Screen based trading system helps in faster transfer of securities and no stamp duty is
required on transfer of securities.
All orders received on the system are sorted with the best priced order getting the first
priority for matching i.e. the best buy order match with the best sell order.
In order to promote dematerialization of securities, NSE joined hands with leading
financial institutions to established the NATIONAL SECURITIES DEPOSITORY
LIMITED(NSDL), the first depository in the country with the objective of enhancing the
efficiency in the settlement systems and also to reduce the fake and stolen securities.
SEBI has made dematerialized settlement mandatory in an ever increasing number of
securities in a phased manner.
There is an increasing preference to settle trades,particulary in high value securities, in
demat form.


What is Demat?


In India, a demat account, an abbreviation of dematerialized account is a type of banking
account which dematerializes paper-based physical stock shares.

Conversion of Securities from Physical Mode into Electronic Mode is called Dematerialization.

The client opens Demat account with any DP,the certificates are destroyed and credit entry of
exactly equal number of securities is created in depository in Electronic Mode. The
dematerialized account is used to avoid holding physical shares: the shares are bought and sold
through a stock broker.

This account is popular in India. The market regulator, Securities And Exchange Board Of India
mandates a demat account for share trading above 500 shares. It became mandatory that any
person holding a demat account should possess a Permanent Account Number(PAN) details to
the depository.

Dematerialization is the process by which physical certificates of an investor are converted to
an equivalent number of securities in electronic form and credited in the investors account. In
order to dematerializes certificates, an investor will have to first open an account with a DP and
then request for the dematerialization of certificates by filling up a demat form and submit
along with the physical certificates. The investor has to ensure that before the certificates are
handed over to the DP for demat,they are defaced by marking Surrendered For
Dematerialization on the face of certificates.