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A.S.Patil college of commerce IBM, Bijapur

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Executive Summary

Karvy is a stock Broking Company that deals in shares. Apart from security broking

Karvy is in to Mutual Fund & Demat, Insurance Service. It offers a wide range of financial

services in order to meet different individuals financial planning. In the present scenario the

service industry has given an utmost importance of doing a particular task at a fastest time in

order to satisfy the customer and to attract new customer. In this project we can find out the

customer of Karvy stock brocking have satisfied with equity trading service. The project

emphasizes on A Study and analysis of investors behavior towards investing in stock

market.

Research Methodology:

Data source:

Primary Data: Through Questionnaire, Interviews.

Secondary Data:Karvys Record & Report, Magazine & Websites.

Sample size: 100 customers.

Area Covered for research: Only in Bijapur city.

Sampling Procedure: Random sampling method.

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DATA COLLECTION METHOD:

1. PRIMARY DATA: This nature of project primary data is collected through by making

survey, which is systematic collection of information directly from the respondents

(Questionnaire) and from Karvy employees.

2. SECOUNDARY DATA: This is been is collected through KARVYS RECORDS &

REPORT, MAGAZINE & WEBSITES.

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STATEMENT OF THE PROBLEM:

KARVY STOCK BROKING Ltd is providing the stock broking service. Hence in

this report an attempt is made to A Study and analysis of investors behavior towardsinvesting in stock market in Bijapur City.

PURPOSE OF THE STUDY:

To find out the level of customer satisfaction towards stock broking.

To know the investment pattern of investors of financial security.

To study the investor perception towards stock market.

To study the investors behavior.

To know about where the investors are investing there earnings.

To determine the awareness level of investors.

For what purpose investors are investing their savings.

How much amount of savings the investors are investing.

To study about profile of individual investors.

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COMPANY PROFILE

INTRODUCTION

KARVY, is a premier integrated financial services provider, and ranked among the

top five in the country in all its business segments, services over 16 million individual

investors in various capacities, and provides investor services to over 300 corporate,

comprising the who is who of Corporate India. KARVY covers the entire spectrum of

financial services such as Stock broking, Depository Participants, Distribution of financial

products - mutual funds, bonds, fixed deposit, equities, Insurance Broking, Commodities

Broking, Personal Finance Advisory Services, Merchant Banking & Corporate Finance,

placement of equity, IPOs, among others. Karvy has a professional management team and

ranks among the best in technology, operations and research of various industrial segments.

EARLY DAYS OF KARVY

The birth of Karvy was on a 1981. It began with the vision and enterprise of a small

group of practicing Chartered Accountants who founded the flagship company Karvy

Consultants Limited. They started with consulting and financial accounting automation, and

carved inroads into the field of registry and share accounting by 1985. Since then, they have

utilized their experience and superlative expertise to go from strength to strengthto better

their services, to provide new ones, to innovate, diversify and in the process, evolved Karvy

as one of Indias premier integrated financial service enterprise.

Thus over the last 20 years Karvy has traveled the success route, towards building a

reputation as an integrated financial services provider, offering a wide spectrum of services.And they have made this journey by taking the route of quality service, path breaking

innovations in service, versatility in service and finally totality in service.

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Their highly qualified manpower, cutting-edge technology, comprehensive

infrastructure and total customer-focus has secured for us the position of an emerging

financial services giant enjoying the confidence and support of an enviable clientele across

diverse fields in the financial world.

Their values and vision of attaining total competence in their servicing has served as

the building block for creating a great financial enterprise, which stands solid on their

fortresses of financial strength - their various companies.

With the experience of years of holistic financial servicing behind us and years of

complete expertise in the industry to look forward to, they have now emerged as a premier

integrated financial services provider.

And today, they can look with pride at the fruits of their mastery and experience

comprehensive financial services that are competently segregated to service and manage a

diverse range of customer requirements.

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MILE STONES OF KARVY

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ORGANISATION CHART

Managing Director

Chief Managing Director

Vice-President Vice-President Vice-President Vice-President

Karvy Karvy Karvy Karvy Securities

Stock Broking Consultants Investors ServicesLtd. Ltd.

Ltd. Ltd.

Deputy Deputy Deputy Deputy

General General General General

Senior Senior Senior Senior

Manager Manager Manager Manager

Branch Manager

N number of Team Leaders

N number of Executives

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Board of directorKarvy Stock Broking Limited

Mr. C Parthasarathy

Mr. M Yugandhar

Mr. M S Ramakrishna

Mr. Akash Mehta

Mr. Peter Wing Hung So

Key Personnel at Head office

G Gopalakrishnam achryulu

V Ganesh

V Mahesh

K Sridhar

S Gopichand

J Ramaswamy

M S Manohar

S Ganapathy Subramanian

T R Prashant Kumar

Ashok K Mittal

Air Commodore (Retd) R Raghuram, VSM

Customer Support - [email protected]

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KARVY Clients - ITS Focus

Clients are the reason for their being. Personalized service, professional care; pro-

activeness are the values that help us nurture enduring relationships with their clients.

Respect for the individual Each and every individual is an essential building block of their

organization.

They are the kiln that hones individuals to perfection. Be they their employees,

shareholders or investors. They do so by upholding their dignity & pride, inculcating trust

and achieving a sensitive balance of their professional and personal lives.

TEAMWORK

None of us is more important than all of us.

Each team member is the face of Karvy. Together they offer diverse services with

speed, accuracy and quality to deliver only one product: excellence. Transparency, co-

operation, invaluable an individual contribution for a collective goal, and respecting

individual uniqueness within a corporate whole, is how they deliver again and again.

RESPONSIBLE CITIZENSHIPA social balance sheet is as rewarding as a business one. As a responsible corporate

citizen, their duty is to foster a better environment in the society where they live and work.

Abiding by its norms, and behaving responsibly towards the environment, are some of their

growing initiatives towards realizing it.

INTEGRITY

Everything else is secondary. Professional and personal ethics are their bedrock. They takepride in an environment that enctheirages honesty and the opportunity to learn from failures

than camouflage them. They insist on consistency between works and actions.

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QUALITY POLICY

To achieve and retain leadership, Karvy shall aim for complete customer satisfaction,

by combining its human and technological esthetics, to provide superior quality financial

services. In the process, Karvy will strive to exceed Customer's expectations.

QUALITY OBJECTIVES

As per the Quality Policy, Karvy will:

Build in-house processes that will ensure transparent and harmonious relationships

with its clients and investors to provide high quality of services.

Establish a partner relationship with its investor service agents and vendors that will

help in keeping up its commitments to the customers.

Provide high quality of work life for all its employees and equip them with adequate

knowledge & skills so as to respond to customer's needs.

Continue to uphold the values of honesty & integrity and strive to establish

unparalleled standards in business ethics.

Use state-of-the art information technology in developing new and innovative

financial products and services to meet the changing needs of investors and clients.

Strive to be a reliable sthenic of value-added financial products and services and

constantly guide the individuals and institutions in making a judicious choice of

same.

Strive to keep all stake-holders (shareholders, clients, investors, employees, suppliers

and regulatory authorities) proud and satisfied.

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KARVY ALLIANCE

Karvy Computershare Private Limited is a 50:50 joint venture of Karvy Consultants

Limited and Computershare Limited, Australia. Computereshare Limited is world's largest --

and only global -- share registry, and a leading financial market services provider to the

global securities industry.

The joint venture with Computershare, reckoned as the largest registrar in the world,

servicing over 60 million shareholder accounts for over 7,000 corporations across eleven

countries spread across five continents. Computershare manages more than 70 million

shareholder accounts for over 13,000 corporations around the world.

Karvy Computershare Private Limited, today, is India's largest Registrar and Share

Transfer Agent servicing over 300 corporate and mutual funds and 16 million investors.

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KARVY CONSULTANTS LIMITED

As the flagship

company of the Karvy Group, Karvy Consultants

Limited has always remained at the helm of organizational affairs, pioneering business

policies, work ethic and channels of progress.

Having emerged as a leader in the registry business, the first of the businesses that

they ventured into, they have now transferred this business into a joint venture with

Computershare Limited of Australia, the worlds largest registrar. With the advent of

depositories in the Indian capital market and the relationships that they have created in the

registry business, they believe that they were best positioned to venture into this activity as a

Depository Participant. They were one of the early entrants registered as Depository

Participant with NSDL (National Securities Depository Limited), the first Depository in the

country and then with CDSL (Central Depository Services Limited). Today, they service

over 6 lakhs customer accounts in this business spread across over 250 cities/towns in India

and are ranked amongst the largest Depository Participants in the country. With a growing

secondary market presence, they have transferred this business to Karvy Stock Broking

Limited (KSBL), their associate and a member of NSE, BSE and HSE.

KARVY STOCK BROKING LIMITED

Karvy Stock Broking Limited, one of the

cornerstones of the Karvy edifice, flows freely towards

attaining diverse goals of the customer through varied services. Helping the customer create

waves in his portfolio and empowering the investor completely is the ultimate goal.

Member - National Stock Exchange (NSE), the Bombay Stock Exchange (BSE), and the

Hyderabad Stock Exchange (HSE).

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Stock Broking Services

It is an undisputed fact that the stock market is unpredictable and yet enjoys a high

success rate as a wealth management and wealth accumulation option. The difference

between unpredictability and a safety anchor in the market is provided by in-depth

knowledge of market functioning and changing trends, planning with foresight and choosing

options with care. This is what they provide in their Stock Broking services.

They offer services that are beyond just a medium for buying and selling stocks and

shares. Instead they provide services which are multi dimensional and multi-focused in their

scope.

They offer trading on a vast platform; National Stock Exchange, Bombay Stock

Exchange and Hyderabad Stock Exchange. More importantly, they make trading safe to the

maximum possible extent, by accounting for several risk factors and planning accordingly.

They are assisted in this task by their in-depth research, constant feedback and sound

advisory facilities. Their highly skilled research team, comprising of technical analysts as

well as fundamental specialists, secure result-oriented information on market trends, market

analysis and market predictions.

This crucial information is given as a constant feedback to their customers, through

daily reports delivered thrice daily; The Pre-session Report, where market scenario for the

day is predicted, The Mid-session Report, timed to arrive during lunch break, where the

market forecast for the rest of the day is given and The Post-session Report, the final report

for the day, where the market and the report itself is reviewed. To add to this repository of

information, they publish a monthly magazine The Finapolis which analyzes the latest

stock market trends and takes a close look at the various investment options, and products

available in the market, while a weekly report, called Karvy Bazaar Baatein, keeps clients

more informed on the immediate trends in the stock market. In addition, their specific

industry reports give comprehensive information on various industries. Besides this, they

also offer special portfolio analysis packages that provide daily technical advice on scripts

for successful portfolio management and provide customized advisory services to help you

make the right financial moves that are specifically suited to their portfolio.

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Stock Broking services are widely networked across India, with the number of trading

terminals providing retail stock broking facilities. Its services have increasingly offered

customer oriented convenience, which they provide to a spectrum of investors, high-net

worth or otherwise, with equal dedication and competence.

But true to their spirit, this success is not their final destination, but just a platform to

launch further enhanced quality services to provide you the latest in convenient, customer-

friendly stock management.

Over the years karvy have ensured that the trust of their customers is their biggest

returns. Factors such as their success in the Electronic custody business has helped build on

their tradition of trust even more. Consequentially their retail client base expanded very fast.

To empower the investor further they have made serious efforts to ensure that their

research calls are disseminated systematically to all their stock broking clients through

various delivery channels like email, chat, SMS, phone calls etc.

Their foray into commodities broking has been path breaking and they are in the

process of converting existing traders in commodities into the more organized mainstream of

trading in commodity futures, both as a trading and risk hedging mechanism.

In the future, their focus will be on the emerging businesses and to meet this

objective, they have enhanced their manpower and revitalized their knowledge base with

enhances focus on Futures and Options as well as the commodities business.

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Depository Participants

The onset of the technology revolution in financial services Industry saw the

emergence of Karvy as an electronic custodian registered with National Securities

Depository Ltd (NSDL) and Central Securities Depository Ltd (CSDL) in 1998. Karvy set

standards enabling further comfort to the investor by promoting paperless trading across the

country and emerged as the top 3 Depository Participants in the country in terms of customer

serviced.

Offering a wide trading platform with a dual membership at both NSDL and CDSL,

they are a powerful medium for trading and settlement of dematerialized shares. They have

established live DPMs, Internet access to accounts and an easier transaction process in order

to offer more convenience to individual and corporate investors. A team of professional and

the latest technological expertise allocated exclusively to their demat division including

technological enhancements like SPEED; make their response time quick and their delivery

impeccable. A wide national network makes their efficiencies accessible to all.

Distribution of Financial Products

The paradigm shift from pure selling to knowledge based selling drives the business

today. With their wide portfolio offerings, they occupy all segments in the retail financial

services industry.

A 1600 team of highly qualified and dedicated 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 a position among the top distributors for equity and

debt issues with an estimated market share of 15% in terms of applications mobilized,

besides being established as the leading procurer in all public issues.

To further tap the immense growth potential in the capital markets they enhanced the

scope of their retail brand, Karvy the Finapolis, thereby providing planning and advisory

services to the mass affluent. Here they understand the customer needs and lifestyle in the

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context of present earnings and provide adequate advisory services that will necessarily help

in creating wealth. The edge that they have over competition is their portfolio of offerings

and their professional expertise. The investment planning for each customer is done with an

unbiased attitude so that the service is truly customized.

Their monthly magazine, Finapolis, provides up-dated market information on market

trends, investment options, opinions etc. Thus empowering the investor to base every

financial move on rational thought and prudent analysis and embark on the path to wealth

creation.

Advisory Services

Under their retail brand Karvy the Finapolis', they deliver advisory services to a

cross-section of customers. The service is backed by a team of dedicated and expert

professionals with varied experience and background in handling investment portfolios. They

are continually engaged in designing the right investment portfolio for each customer

according to individual needs and budget considerations with a comprehensive support

system that focuses on trading customers' portfolios and providing valuable inputs,

monitoring and managing the portfolio through varied technological initiatives. This is madepossible by the expertise they have gained in the business over the years. Another venture

towards being investor-friendly is the circulation of a monthly magazine called Karvy - the

Finapolis'. Covering the latest of market news, trends, investment schemes and research-

based opinions from experts in various financial fields.

Private Client Group

This specialized division was set up to cater to the high net worth individuals and

institutional clients keeping in mind that they require a different kind of financial planning

and management that will augment not just existing finances but their life-style as well. Here

they follow a hard-nosed business approach with the soft touch of dedicated customer care

and personalized attention.

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For this purpose they offer a comprehensive and personalized service that

encompasses planning and protection of finances, planning of business needs and retirement

needs and a host of other services, all provided on a one-to-one basis.

Their research reports have been widely appreciated by this segment. The delivery

and support modules have been fine tuned by giving their clients access to online portfolio

information, constant updates on their portfolios as well as value-added advice on portfolio

churning, sector switches etc. The investment recommendation given by their research team

in the cash market has enjoyed a high success rate.

KARVY INVESTORS SERVICE LIMITED

Merchant Banking:

Recognized as a leading merchant banker in the country, they are registered with

SEBI as a Category I merchant banker. This reputation was built by capitalizing on

opportunities in corporate consolidations, mergers and acquisitions and corporate

restructuring, which have earned us the reputation of a merchant banker. Raising restheirces

for corporate or Government Undertaking successfully over the past two decades have given

us the confidence to renew their focus in this sector.

Their quality professional team and their work-oriented dedication have propelled us

to offer value-added corporate financial services and act as a professional navigator for long

term growth of their clients, who include leading corporate, State Governments, foreign

institutional investors, public and private sector companies and banks, in Indian and global

markets.

They have also emerged as a trailblazer in the arena of relationships, both at the

customer and trade levels because of their unshakable integrity, seamless service and

innovative solutions that are tuned to meet varied needs. Their team of committed industry

specialists, having extensive experience in capital markets, further nurtures this relationship.

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Their financial advice and assistance in restructuring, divestitures, acquisitions, de-

mergers, spin-offs, joint ventures, privatization and takeover defense mechanisms have

elevated their relationship with the client to one based on unshakable trust and confidence.

An Investment Banker is total solutions provider as far as any corporate, desirous of

mobilising capital, is concerned. The services range from investment research to investor

service on the one side and from preparation of offer documents to legal compliances and

post issue monitoring on the other. There exists a long lasting relationship between the Issuer

Company and the Investment Banker. A "Merchant Banker" could be defined as "An

organization that acts as an intermediary between the issuers and the ultimate purchasers of

securities in the primary security market"

Merchant Banker has been defined under the Securities & Exchange Board of India

(Merchant Bankers) Rules, 1992 as "any person who is engaged in the business of issue

management either by making arrangements regarding selling, buying or subscribing to

securities as manager, consultant, advisor or rendering corporate advisory service in relation

to such issue management".

Merchant Banking, as a commercial activity, took shape in India through the

management of Public Issues of capital and Loan Syndication. It was originated in 1969 with

the setting up of the Merchant Banking Division by ANZ Grindlays Bank. The main service

offered at that time to the corporate enterprises by the merchant banks included the

management of public issues and some aspects of financial consultancy. The early and

mid-seventies witnessed a boom in the growth of merchant banking organisations in the

country with various commercial banks, financial institutions, broker's firms entering into

the field of merchant banking.

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KARVY AS AN INVESTMENT BANKER

Karvy is well networked with 200 full-fledged branches and 350 Investor Service

Centers with a workforce of over 3500 personnel drawn from various disciplines.

Karvy Investor Services Limited, a SEBI registered Merchant Banker is a 100%

subsidiary of Karvy Consultants Limited and is among the top 10 merchant Bankers in India

today. The parent Company i.e. Karvy Consultants Limited was founded by a group of

professionals in 1982 and today it has evolved as integrated financial services company of

repute, offering various financial services to suit every requirement/need of their customers.

By virtue of its access to millions of Indian Shareholders, in addition to companies, banks

and financial institutions, Karvy has in the process built up a positive reputation with

regulatory authorities and other government agencies. Their emphasis on the quality of the

services, they offer, has been instrumental in helping us to attain the leadership in the

financial services sector.

They have a track record of handling 70 public/rights issues as Merchant Bankers.

During the last two years they have handled the share buyback issues of TTK LIG Limited,

Sirpur Paper Mills Limited, Bhagyanagar Metals Limited, A V Thomas Group-Nelliampathy

Tea and Produce Company Limited, Chordia Food Products Limited, Heritage Foods (India)

Limited, Titanor Components Ltd, Punjab Communications Limited, etc. to name a few.

They have also handled/are handling the Rights/Public issues of Dhanalakshmi Bank,

Dhandapani Finance, Moschip, Karur Vysya Bank, Lux Hosiery Industries Ltd, Sah

Petroleums Limited, Paradyne Infotech Limited, Yash Papers Limited, SPL Industries

Limited, Provogue (I) Limited, Tulip IT Services Limited, Gati Limited as lead managers to

name a few. They have also been appointed as advisor to some of the GOI disinvestments.

They have actively marketed bond issues of corporations from the States of Maharashtra,

Karnataka & Gujarat and debt issues of all the Financial Institutions like IDBI, ICICI, IFCI,

REC, PFC, SIDBI, etc.

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As an Investment Banker, Karvy provides;

Management of Capital Issues

Management of Buybacks, Takeovers and Delisting offers

Private Placement of Debt and Equity

Mergers and Amalgamations

Loan Syndication

KARVY COMPUTERSHARE PRIVATE LIMITED

KARVY have traversed wide spaces to tie up with the worlds largest transfer agent,

the leading Australian company, Computershare Limited. The company that services more

than 75 million shareholders across 7000 corporate clients and makes its presence felt in over

12 countries across 5 continents has entered into a 50-50 joint venture with us.

With its management team completely transferred to this new entity, they will aim to

enrich the financial services industry than before. The future holds new arenas of client

servicing and contemporary and relevant technologies as they are geared to deliver better

value and foster bigger investments in the business. The worldwide network of

Computershare will hold us in good stead as they expect to adopt international standards in

addition to leveraging the best of technologies from around the world.

Excellence has to be the order of the day when two companies with such similar

ideologies of growth, vision and competence, get together.

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Mutual Fund Services:

They have attained a position of immense strength as a provider of across-the-board

transfer agency services to AMCs, Distributors and Investors.

Nearly 40% of the top-notch AMCs including prestigious clients like Deutsche AMC

and UTI swear by the quality and range of services that they offer. Besides providing the

entire back office processing, they provide the link between various Mutual Funds and the

investor, including services to the distributor, the prime channel in this operation.

Carrying the limitless' ideology forward, they have explored new dimensions in

every aspect of Mutual Fund servicing right from volume management, cost effective

pricing, delivery in the least turnaround time, efficient back-office and front-office operations

to customized service. They have been with the AMCs every step of the way, helping them

serve their investors better by offering them a diverse and customized range of services. The

first to market' approach that is their anthem has earned us the reputation of an innovative

service provider with a visionary bent of mind.

Their service enhancements such as Karvy Converz', a full-fledged call center, a top-

line website (www.karvymfs.com), the m-investor' and many more, creating a galaxy of

customer advantages.

Issue Registry:

In their voyage towards becoming the largest transaction-processing house in the

Indian Corporate segment, they have mobilized funds for numerous corporate, Karvy has

emerged as the largest transaction-processing house for the Indian Corporate sector. With an

experience of handling over 700 issues, Karvy today, has the ability to execute voluminous

transactions and hard-core expertise in technology applications have gained us the No.1 slot

in the business. Karvy is the first Registry Company to receive ISO 9002 certification in

India that stands testimony to its stature

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Karvy has the backing of skilled human restheirces complemented by requisite

technological packages to ensure a faster processing capability. Karvy has the benefit of a

good synergy between depositories and registry that enables faster resolution to related

customer queries. Apart from its unique investor servicing presence in all the phases of a

public Issue, it is actively coordinating with both the main depositories to develop special

models to enable the customer to access depository (NSDL, CDSL) services during an IPO.

Their trust-worthy reputation, competent manpower and high-end technology and

infrastructure are the solid foundations on which their success is built.

Corporate Shareholder Services:

Karvy has been a customer centric company since its inception. Karvy offers a single

platform servicing multiple financial instruments in its bid to offer complete financial

solutions to the varying needs of both corporate and retail investors where an extensive range

of services are provided with great volume-management capability.

Today, Karvy is recognized as a company that can exceed customer expectations

which is the reason for the loyalty of customers towards Karvy for all his financial needs. An

opinion poll commissioned by The Merchant Banker Update and conducted by the reputed

market research agency, MARG revealed that Karvy was considered the Most Admired in

the registrar category among financial services companies.

They have grown from being a pure transaction processing business, to one of

complete shareholder solutions.

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KARVY GLOBLE SERVICE PRIVATE LIMITED

The specialist Business Process Outsourcing unit of the Karvy Group. The legacy of

expertise and experience in financial services of the Karvy Group serves us well as they enter

the global arena with the confidence of being able to deliver and deliver well.

Here they offer several delivery models on the understanding that business needs are

unique and therefore only a customized service could possibly fit the bill. Their service

matrix has permutations and combinations that create several options to choose from.

Be it in re-engineering and managing processes or delivering new efficiencies, their

service meets up to the most stringent of international standards. Their outsourcing models

are designed for the global customer and are backed by sound corporate and operations

philosophies, and domain expertise. Providing productivity improvements, operational cost

control, cost savings, improved accountability and a whole gamut of other advantages.

They operate in the core market segments that have emerging requirements for

specialized services. Their wide vertical market coverage includes Banking, Financial and

Insurance Services (BFIS), Retail and Merchandising, Leisure and Entertainment, Energy

and Utility and Healthcare.

Their horizontal offerings do justice to their stance as a comprehensive BPO unit and

include a variety of services in Finance and Accounting Outstheircing Operations, Human

Restheirce Outstheircing Operations, Research and Analytics Outstheircing Operations and

Insurance Back Office Outstheircing Operations.

The finance and accounting function in any business has always been a restheirce and

time intensive activity. The advent of computing systems and technology has enhanced the

capabilities to handle volumes and reduce processing times; however the need for expert

administrative support for this non-core business activity has emerged as a business

opportunity for the qualified service providers in this field across the globe.

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Their services cover the entire spectrum of services ranging from high volume

transaction processing to high value financial analysis and reporting.

The team of financial experts at KARVY Global Services is fully conversant with the

financial processes and accounting systems and create value by their ability to synergize

domain knowledge with processing and technological expertise.

The Finance and Accounting Outsourcing center offers services such as Process

Management, End to End Accounting, Taxation and Financial Analysis & Reporting

services.

The Process Management COE offerings include

Accounts Payable

Accounts Receivable

Billing / Sales Accounting

Purchase Accounting

Reconciliations

Fixed Assets

Inter-company Accounting

The End to End Accounting COE offerings include

Cash Receipts and Payments

Bank Receipts and Payments

Sales and Sales Returns

Purchases and Purchase Returns

Jtheirnal Vouchers

Trial Balance

Financial Statements

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The Taxation COE offerings include

Personal Income Tax

Corporate Income Tax

Sales and Local Tax (SALT)

Costs Segregation

The Financial Analysis and Reporting COE offerings include

Financial Statement Analysis

Financial Ratio Analysis

Ageing Analysis

Expense Reporting

Periodic Management Information

Head quartered:

KARVY Global Services is headquartered at Hyderabad, India and operates from

three global delivery centers in Hyderabad.

Their business development offices are located in New York, Chicago and California

in United States, Toronto in Canada and London in United Kingdom and Horgen in

Switzerland. E-mail us to know how they can serve you.

KARVY COMMTRADE LIMITED

Commodities market, contrary to the beliefs of many people, has been in existence in

India through the ages. However the recent attempt by the Government to permit Multi-

commodity National levels exchanges has indeed given it, a shot in the arm. As a result two

exchanges Multi Commodity Exchange (MCX) and National Commodity and derivatives

Exchange (NCDEX) have come into being. These exchanges, by virtue of their high profile

promoters and stakeholders, bundle in themselves, online trading facilities, robust

surveillance measures and a hassle-free settlement system. The futures contracts available on

a wide spectrum of commodities like Gold, Silver, Cotton, Steel, Soya oil, Soya beans,

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Wheat, Sugar, Channa etc., provide excellent opportunities for hedging the risks of the

farmers, importers, exporters, traders and large scale consumers. They also make open an

avenue for quality investments in precious metals. The commodities market, as it is not

affected by the movements of the stock market or debt market provides tremendous

opportunities for better diversification of risk. Realizing this fact, even mutual funds are

contemplating of entering into this market.

Karvy Comtrade Limited is another venture of the prestigious Karvy group. With

their well established presence in the multifarious facets of the modern Financial services

industry from stock broking to registry services, it is indeed a pleasure for us to make foray

into the commodities derivatives market which opens yet another door for us to deliver their

service to their beloved customers and the investor public at large.

With the high quality infrastructure already in place and a committed Government

providing continuous impetus, it is the responsibility of us, the intermediaries to deliver these

benefits at the door-steps of their esteemed customers. With their expertise in financial

services, existence across the lengths and breadths of the country and an enviable

technological edge, they are all set to bring to you, the pleasure of investing in this

burgeoning market, which can touch upon the lives of a vast majority of the population from

the farmer to the corporate alike. They are confident that the commodity futures can be a

good value addition to their portfolio.

The company provides investment, advisory and brokerage services in Indian

Commodities Markets. And most importantly, they offer a wide reach through their branch

network of over 225 branches located across 180 cities.

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KARVY INSURECE BROKING PRIVATE LIMITED

At Karvy Insurance Broking Pvt.Ltd., they provide both life and non-life insurance

products to retail individuals, high net-worth clients and corporates. With the opening up of

the insurance sector and with a large number of private players in the business, they are in a

position to provide tailor made policies for different segments of customers. In their journey

to emerge as a personal finance advisor, they will be better positioned to leverage their

relationships with the product providers and place the requirements of their customers

appropriately with the product providers. With Indian markets seeing a sea change, both in

terms of investment pattern and attitude of investors, insurance is no more seen as only a tax

saving product but also as an investment product. By setting up a separate entity, they would

be positioned to provide the best of the products available in this business to their customers.

Their wide national network, spanning the length and breadth of India, further

supports these advantages. Further, personalized service is provided here by a dedicated team

committed in giving hassle-free service to the clients.

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INVESTMENT

Investments can be defined as the process of, sacrificing something now for prospect

of gaining something later or Investment is the sacrifice of certain present value for theuncertain future reward. An Investment decision is a trade off between risk and return. All

investment choices are made at points of time in accordance with the personal investment

ends and in contemplation of an uncertain future. Since investment in securities are

revocable, investment ends are transient and investment environment is fluid, the reliable

bases for reasoned expectations become more and more vague as one conceives of the distant

future.

Investment is the employment of funds on assets with the aim of earning income or

capital appreciation. Investment has two attributes namely time and risk. Present

consumption is sacrificed to get a return in the future. The sacrifice that has to be born in

certain the return in the future may be uncertain. This attribute of investment indicates the

risk factor. The risk is undertaken with a view to reap some return from the investment.

The problem of surplus gives rise to the question of where to invest. In the past,

investment avenues were limited to real estate, scheme of the post office and banks. At

present, a wide verity of investment avenues is open to the investors to suit their needs and

nature. Knowledge about the different avenue is open to the investors to choose investment

intelligently. The required level of return and the risk tolerance level decide the choice of

investors. The investment alternatives range from financial securities to traditional non-

security investment. The financial securities may be negotiable or non-negotiable.

The negotiable securities are financial securities that are transferable. The negotiable

securities may yield variable income or fixed income. Securities like equity shares are

variable income securities. Bonds, debentures, Indra Vikas Patra, Kisan Vikas Patra and

money market yield a fixed income.

The non-negotiable financial investment as it self suggests is not transferable. This is

also known as non-securitized financial investment. Deposit schemes offered by the post

office, banks, companies, and non-banking financial companies are of this category.

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To the economist, investment is the net addition made to the nations capital stock

that consists of goods and services that are used in the production process. A net addition to

the capital stock means an increase in the buildings, equipments or investment.

Investing in various types of assets is an increasing activity that attracts people from

all walks of the life irrespective of their occupation, economic status, education and family

background. When a person has more money that he requires for current consumption, he

would be called as a potential customer. The investor who is having extra cash could invest

in securities or in any other assets like gold or real estate or could simply deposit it in bank

account. The companies that have extra income may like to invest their money in the

extension of the existing firm or undertake venture. All of these activities in a broader sense

mean as investment.

There are basically three concepts of investment:

1. Economic investment- That is, an economists definition of investment.

2. Investment in a more general or extended sense, which is used by the common

man.

3. Financial investment-means an exchange of financial claims-stock and bonds (which

are collectively called securities), real estate etc.

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INTERMEDIARIES:

Savings can be invested in a number of investments. However, there is a gap between

the potential investors and firms offering different investment avenues. Hence, there is a need

of the hour to bring together these potential investors and such investment companies. There

are some firms which facilitate bringing together potential investors and investment

companies called intermediaries. Intermediaries are institutional or individual agencies who

assist in the process of transforming savings into investment.

The major intermediaries in the capital market are:

1. Merchant bankers

2. under-writers

3. Registrars

4. Brokers

5. Depositories

6. Collecting agents

7. Advertising agencies

8. Agents9. Stock brokers and Sub-brokers

10.Mutual funds.

Stock exchanges are intricately inter-woven in the fabric of nation economic life. Of

all the modern service institutions, stock exchanges are perhaps the most crucial agent and

facilitators of entrepreneurial progress. After the individual revolution, as the size of business

enterprises grew, it was no longer possible for proprietors or even partnership to raise large

amount of money required for undertaking entrepreneurial ventures, such huge requirement

of capital could only met by the participation of very large number of investors, there number

running into hundreds, thousands and millions, depending on the size of the business

ventures.

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It is not always possible to find buyers of an entire business or even a part of

business, just when one wishes to sell it. Similarly, it is not easy for some one with savings,

especially with a small amount of savings, to ready find an appropriate business opportunity,

or a part there of, for investment. This implies that ownership in business has to be Broken

up into a large number of small units, such that each unit may be independently and sold

without hampering the business activities as such.

This end is achieved in a modern business through the mechanism of shares. A share

represents the smallest recognized fraction of ownership, represented in the form of a

certificate, know as the share certificate. The banking up of the total ownership of a business

into small units, each unit represented by a shares certificate, enables them to be easily

bought and sold. The institution where this buying and selling of shares takes place is called

the stock exchange.

By enabling the convertibility of ownership in product market into financial assets

namely shares, stock exchange brings together buyers and sellers of fractional ownerships of

companies. These activities relating to stock exchanges and its variations are appropriately

known as stock market or security market.

INVESTMENT CHARACTERISTICS:

All investments are characterized by certain features are:

1. Return: All investors are characterized by the expectation of a return. In fact, investments

are made with the primary objectives of deriving a return. The return may be received in the

form of yield plus capital appreciation. The difference between the sale price and the

purchase price is capital appreciation. The dividend or interest received from the investment

is the yield. Different types of investment promise different rates of return. The return from

an investment depends upon the nature of the investment, the maturity period and a host of

other factors.

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2. Risk: Risk is inherent in any investment. This risk may relate to loss of capital, delay in

repayment of capital, nonpayment of interest, or variability of returns. While some

investments like government securities and bank deposits are almost risk less, others are

more risky.

The risk of an investment depends on the following factors:

1. The longer the maturity period, the larger is the risk.

2. The lower the credit worthiness of the borrower, the higher is the risk.

3. The risk varies with the nature of investment. Investments in ownership securities like

equity shares carry higher risk compared to investments in debt instruments like

debentures and bonds.

3. Safety: The safety of an investment implies the certainty of return of capital without loss

of money or time. Safety is another feature which an investor desires for his investments.

Every investor expects to get back his capital on maturity without loss and without delay.

4. Liquidity: An investment which is easily saleable or marketable without loss of money

and without loss of time is said to possess liquidity. Some investments like company

depends, bank deposits, P.O. Deposits, NSC, NSS etc, are not marketable. Some investment

instruments like preference shares and debentures are marketable, but there are no buyers in

many cases and hence their liquidity is negligible. Equity shares of companies listed on stock

exchanges are easily marketable through the stock exchanges.

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INVESTMENT OBJECTIVES:

The main objectives of investment are to increase the rate of return and reducing the risk.

Other objectives like safety, liquidity, and hedge against inflation can be considered as

subsidiary objectives.

A) Return:

Investors always expect a good rate of return form their investments. Rate of return

could be defined as the total income the investor receives during the holding period stated as

a percentage of purchasing price at the beginning of the holding period.

B) Risk:

Risk of holding securities is related with the probability of actual return becoming the

expected return. The word risk is synonymous with the phrase variability of return. An

investment whose rate of return varies widely from period to period is more risky than whose

return that does not change much. Every investor likes to reduce risk of his investment by

proper combination of different securities.

There are mainly two types of risks they are:

1. Unsystematic risk

2. Systematic risk

Unsystematic risk arises due to short supply of raw materials, disputes in management

etc. It is uncontrollable that is why it is known as Internal risk.

Systematic risks arise due to political, economic, social factors it is also known as

controllable risks that is why it is External risk.

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INVESTOR V/S SPECULATOR

Investor plans for longer time horizon. Holding period may be from one year to few

years whereas speculator plans for very short period. Holding period varies from few days to

months.

1. Investor is ready to take moderate risk while speculator is willing to undertake high

risk.

2. Investor likes to have moderate rate of return associated with limited risk but

speculator likes to have return for assuming high risk.

3. Investor decision considers fundamental factors and evaluates the performance of the

company regularly whereas speculator considers the inside information, here say

market condition.

4. Investor uses the fund of his own and avoids the borrowed funds while speculator

uses the borrowed funds to supplement his personal funds.

INVESTMENT AND GAMBLING

A gamble is usually a very short term investment in a game or chance. Gambling is

different from speculation and investment. The time horizon involved in gambling is shorter

then speculation and investment. The results are determined by the roll of dice or the turn of

card. Secondly, people gamble as a way to entertain themselves, earning income would be

the secondary. Thirdly, the risk in gambling is different from the risk of the investment. In

investment there is an analysis of risk and return. Positive returns are expected by the

investors. The financial analysis does not reduce the risk proportion involved in gambling.

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Stock Broking:

It consists of two markets those are primary market and secondary market.

Primary Market:

Primary markets bring together buyers and sellers - either directly or through

intermediaries - by providing an arena in which sellers investment propositions can be

priced, brought to the marketplace, and sold to buyers. In this context, the seller is called the

issuer and the price of whats sold is called the issue price.

It is the initial market for any item or service. It also signifies an initial market

for a new stock issue. The jargon also means a firm, trading market held in a security by a

trader who performs the activities of a specialist by being ready to execute orders in that

stock.

Secondary Markets

Secondary Markets are the stock exchanges and the over-the-counter market.

Securities are first issued as a primary offering to the public. When the securities are traded

from that first holder to another, the issues trade in these secondary markets.

It is an undisputed fact that the stock market is unpredictable and yet enjoys a high success

rate as a wealth management and wealth accumulation option. The difference between

unpredictability and a safety anchor in the market is provided by in-depth knowledge of

market functioning and changing trends, planning with foresight and choosing one & choose

options with care.

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EARLY HISTORY AND DEVELOPMENTS OF THE INDIAN STOCK

MARKETS

What is a stock exchange?

Stock Exchange means any body or individuals whether incorporated or not, constituted for

the purpose of assisting, regulating or controlling the business of buying, selling, or dealing

in securities. It is an association of member brokers for the purpose of selfregulation and

protecting the interests of its members. It can operate only if the government under the

securities contracts recognizes it (regulation) act, 1956. The recognition is granted under

section 3 of the act by the central government, ministry of finance.

Present recognized stock exchanges

At present, there are 21 stock exchanges recognized under the securities contracts

(regulation) Act, 1956. They are located at Bombay, Calcutta, Madras, Delhi, Ahmedabad,

Hyderabad, Indore, Bhuwandeshwar, Mangalore, Patna, Bangalore, Rajkot, Guwahati,

Jaipur, Kanpur, Ludhiana, Baroda, Cochin and Pune. The recently recognized stock

exchanges are at Coimbatore and Meerut. Vishakhapatnam stock exchange was recognized in

1996 for electronic trading.

A stock exchange has also been sought for this body as the jurisdiction of the Securities

contracts (Regulation) Act, 1956 has not so far been extended to the areas covered by the

state. A decade ago, there were hardly 8 stock exchanges in the country. There is no trading,

however, in Meerut and Vishakhapatnam stock exchanges.

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Recognized stock exchanges in India

Exchanges Sate (city) Exchange State (city)

Ahmedabad Gujarat Uttar Pradesh Uttar Pradesh

Bangalore Karnataka Ludiana Punjab

Bhubeneshwar Orissa Madras Tamil Nadu

Calcutta West Bengal Mangalore Karnataka

Cochin Kerala Magadh Bihar (Patna)

Coimbatore Tamil Nadu Mumbai Maharashtra

Guwahati Assam Pune Maharashtra

Hyderabad Andhra Pradesh Saurashtra Kutch Gujarat

Madhya Pradesh M P (Indore) Vadodara (Baroda) Gujarat

Jaipur Rajasthan OTCEI Maharashtra

The Stock Trading Advantages

i. Stock trading on over 19 of the worlds largest exchanges.

ii. Get an in-depth view of the market with Level 2 Market Depth (available on 10

exchanges on agreement).

iii. Stock trading on live stock prices (available on agreement).

iv. Profit from stock trading on low, fixed commissions, transparent pricing and no

additional charges and

v. Take advantage of built-in technical analysis and trend-tracking tools,

streaming news, market research and company information all the stock trading tools

in one place.

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The close of the 18th century, the East India Company was the dominant institution

and business in its loan securities used to be transacted. The beginning of 19th

century saw a

perceptible increase in the nature of business in corporate stocks and shares. However the

main importance to the stock business came in 1856 when the companies act providing for

limited liability of members was enacted. This was followed by a period of boom and crisis

and formation of organized stock exchanges.

The American civil war (1860-61) resulted in the share mania of 1861-65 during

which the number of brokers increased to about 200-250 and they became possessed of great

influence, authority and wealth. Like the south sea bubble and tulip mania of the 18 th century

in Europe, the share mania of 1861-65 caused undesired desolation at the end of the

American civil war. Very few companies were solvent in Mumbai. The depression was long

and severe, but the share mania had certain lasting effects. The brokers organized an informal

association in 1875 which was later on formally established in Mumbai on 3 rd December

1887 as society to be called the Native shares and stock brokers association. Expectation of

liquid capital and the establishment of a regular market in securities helped to take Mumbai

what it is today the chief center of the money and capital markets and the financial capital

of India.

The cotton textile industry which established the primary of Mumbai also contributed

to the development of the Ahmedabad share and stock brokers association in 1894. The stock

exchanges at Mumbai and Ahmedabad were well set up property organized association of the

20th

century, but the Calcutta stock exchange was not so constituted despite the fact that

stock business in an organized way had been existing since 1830.

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INTER-WAR PERIOD:

On the eve of the worldwar-1, the stock market in India considered of 3 stock

exchanges in Mumbai, Calcutta and Ahmedabad as hostilities developed, the import of

manufacturers into India stopped almost completely as Europe ceased to produce any

manufactured articles except those required for the war. As a result Indian manufacturers

were able to penetrate the home market. It was a period of phenomenal prosperity. The stock

exchange soon became the centre of attraction for all. Rival stock exchange in Mumbai and

Ahmedabad in 1917 and 1920 respectively where formed but could not survive long as they

could not obtain official reorganization under the provisions of the Mumbai securities

contracts control act 1925. Futile attempts to establish stock exchange in madras and northern

India were also made.

The boom petered out in 1921 and Indian stock market went through a lean period.

The improvements in business conditions and in stock market activity in 1935 were marked

by growing public interest in stocks, shares and securities. There was a rapid increase in

textile mils and many new plantations companies were floated in south India. To cater to this

expanding trade in plantation and mill shares, a stock was organized in madras on 4 th

September 1937 under the name and style of the Madras stock exchange association (Pvt)Ltd.

WORLD WAR II AND AFTER:

A period of unprecedented prosperity to the stock exchanges ushered in world war II.

Many new associations were constituted. In Ahmedabad, as many as four new stock

exchanges were set up one of another. Similarity in Lahore, which witnessed a grate

expansion of monitory income during the war. Calcutta and Delhi had to stock exchanges

besides the existing ones. In 1940, to stock exchanges, namely the U.P. stock exchange Ltd.

And the Nagpur stock exchange Ltd, were establish in Kanpur and Nagpur, respectively. In

1944, the Hyderabad stock Ltd. Was incorporated in Hyderabad recognized under the

Hyderabad securities contracts control act. A small stock exchange was also set up in

Bangalore city.

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The mushroom stock exchanges during the war time suffered a total depression. The

exchanges in Lahore closed down. Most of the others stock exchanges withered away when

they applied to the central government for reorganization under the securities contracts

(regulation) act, 1956.only the old established stock exchanges in Mumbai, calutta, Madras,

Ahmedabad , Delhi, Hyderabad and Indore were recognized under this act. The Bangalore

stock exchange was registered subsequently in 1957 and recognized 1963.

Organization of Indian stock exchanges

The recognized stock exchanges in India vary from voluntary no-profit making

organizations (as in Mumbai, Ahmedabad and Indore) to joint stock companies Ltd by shares

(as in Calcutta, Delhi and Bangalore) and companies Ltd by guarantee (as in Madras and

Hyderabad) since the rules or articles of association defining the constitution of the organized

stock exchanges are approved by the central government. The Mumbai stock exchange was

the first to get permanent reorganization followed by Calutta, Delhi, Madras, Ahmedabad,

Hyderabad, Indore and Bangalore. At present there are 21 stock exchanges in India

(Excluding NSE and OTCEI) the largest being the Bombay stock exchanges (BSE). The

prominent ones are Mumbai, Calcutta, Madras, Delhi and Ahmedabad. The overall

development and regulation of the securities market has been interested to the Securities

Exchange Board of India (SEBI) by an act of parliament in 1992

CAPITAL MARKET:

Capital is required to bring a business into existence, to keep it alive and see it

growing. Achieving the goal of business requires the performance of such business function

namely production, distribution, marketing, research and development all of which involve

investment of capital. Further, companies require capital not only for meeting there long term

requirements of funds for new projects, modernization, expansion and diversification

Programmes but also for covering operational expenses.

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Categories of Capital:

1. Long-term capital/ fixed capital: it represents the amount of capital invested in fixed

assets. It is a long term investment.

2. Short-term capital/ Working capital: it represents the amount of capital invested in current

assets. Current assets are those assets which can be converted in cash within a year or

accounting period. Working capital is required for meeting the operating cost of the concern.

3. Export Capital: The amount of capital required for making payment in international trade

is called export capital.

The methods of payment in international trade are:

Cash with order

Open account

Bills of exchange

Bankers documentary credits.

4. Venture capital: venture capital is the capital invested in highly risky venture or projects.

Meaning and Definition of Capital Market:

Generally speaking, capital market is the place where in funds are raised by

companies for meeting their long term requirements. Capital market is a market for long term

capital.

Capital market may be defined as the mechanism which co-operative the demand and

supply forces for long term capital. The participant on demand and supply side of this market

are financial institution, mutual funds, agents, brokers, dealers, borrowers and lenders.

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Components of capital Market:

Broadly speaking, capital market is composed of two segments:

The new issue market or primary market

The secondary market

1. The new issue market or primary market: in the primary market the existing companies or

new companies offer shares/debentures to the public for subscription. The primary market

also includes the offer of securities to the existing share holders of the companies on right

and bonus basis. In the primary market the companies acquire long term funds for meeting

their requirements like project financing, expansion; modernization etc. primary market

creates financial claims. In this market the public can only buy the shares. Parties involved in

the primary market are the lenders and the barrowers. Merchant bankers, registrars, issue

companies, under-writers, bankers to the issue, public financial institutions, mutual funds etc.

are the major players in new issue markets.

The primary market is made up of two components

80% of the IPO is offered to the public The remaining 20% is offered to firms which already traded to raise additional capital.

2. The secondary Market: In the secondary market or stock market old issues are bought and

sold. In this market, the public can buy sell securities. This market does not create financial

claims. In this market the funds does not flow between barrowers and lenders but fund flow

between lenders and others/ buyers of security. The brokers, the investors, mutual funds and

the financial institution are the important constituents of the secondary market.

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Players in the capital market:

The players in the capital markets are divided in three categories:

1. Companies issuing securities: as per the SEBI guidelines, companies intending to issue

securities divided three categories.

New companies

Existing unlisted companies

Existing listed companies

a)If a new company satisfies all the following three conditions.

It has not completed 12 months of commercial operation.

Its audited operative results are not available.

It is set up by entrepreneurs with or without track record.

b) Existing closely held or private companies are called existing unlisted companies.

c) A company is said to be an existing listed company if its shares are listed in the any one

of the recognized stock exchanges.

2. Structure of capital market in India: The structure of Indian capital market has under

gone a remarkable transformation over the last four and a half decades and now companies

an impressive network of financial institutions and new financial instruments. The secondary

market has become more sophisticated in response to the varied needs of the investors.

Provision of long term credit is entrusted with specialization financial institutions. Of these

IDBI, IFCI, UTI, LIC, GIC etc. Constitute the largest segment.

The various constitutes of capitals market are:

Equity Market

Debt Market

Government Securities Market

Mutual fund schemes

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3. Membership: The regulations governing the admission of members and the recognized

stock exchanges are uniform in terms of the provisions of securities contracts (regulations)

Rules 1956.

These statutory rules provide that no person shall be eligible to be elected as a member if he

is

Less than 21 years of age.

Not an Indian citizen.

Adjudged bankrupt.

Convicted offence involving fraud or dishonesty.

Engaged as principal or employee in any business other than that of securities.

Member of any other association in India where dealing in securities are carried on.

Director or employees of company whose principal business is that of dealing in

securities.

Members of the exchange entitled to work either as individual entitles, or in partnership, or

as representative members transacting business on the floor of the market not in their own

name but in the name of the appointing members who assume the market responsibility for

the business so transacted.

Members are entitled to appoint attorneys to supervise their stock exchange business. Suchpersons satisfy in all respect the conditions of eligibility prescribed for membership of the

exchange and their appointment must be approved by the governing body.

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The Role of SEBI in Stock Market:

The security and exchange board of India, is the national regulatory body for the

security market, set up under the security and exchange board of India act, 1992, to protect

the interest of investors in securities and promote the development of, and to regulate, the

securities market and for matters connected there with or incidental to.

SEBI has its head office in Bombay and it is in process of setting up regional offices

in the metropolitan cities of Calcutta, Madras and Delhi. The board of SEBI companies a

chairman, two members from the central government representing the ministries of finance

and law, one member from the RBI, and two other members appointed by central

government.

As per the SEBI act 1992, the powers and functions of the board the regulations of the

stock exchanges and other securities market, registration and regulation of the working of

stock brokers, sub-brokers, bankers to an issue (a public offer), trusties of trust deeds . the

registers to an issue, under writers and such other intermediaries whom may be associated

with stock market in any way, promotion and regulation of self regulatory organization,prohibiting fraudulent and unfair trade practices and insider trading in securities markets,

regulating substantial acquisition of shares and take over of companies, under writing

inspection, conducting inquires and audits of stock exchanges, performing such function and

exercising such powers as contained in the provisions of the capital issues act 1947 and the

securities contracts (regulations) act, 1956, laving various fees and other charges, conducting

necessary research for above purpose and performing such other functions as may be

prescribed from time to time.

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Methodology:

Research can be defined as systemized effort to gain new knowledge. A research is

carried out by different methodologies which have their own pros and cons. Research

methodology is a way to solve research in studying and solving research problem along with

logic behind them are defined through research methodology. Thus while talking about

research methodology we are not only talking of research methods but also considered the

logic behind the methods. We are in context of our research studies and explain why it is

being used a particular method or technique and why the others are not used. So that research

result is capable of being evaluated either by researcher himself or by others.

Research has its special significance in solving various operational and planning

problems of business and industry. Research methodology is the way to systematically solve

the research problem.

The study is based on the primary and secondary data which are collected through the

firms employees and clients of the organization.

Data required and collected, primary data is collected through personal interview,Telephonic interview and secondary data is collected from internet, news papers, magazines

published by the organization.

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Need for the study:

The study focuses on the A study and analysis of investors behavior towards

investing in stock market with reference to Karvy stock broking Ltd Bijapur further study

rivals the profile of individual investors.

Scope of the study:

To study the investors behavior towards investing in stock market, have been carried

out in Karvy stock broking Ltd Bijapur.

Projects aims to relevant information of Karvy about the nature of the study the

method used in the research methodology of the study comprehensive background of the

study, the conclusion and suggestions inferred findings.

Objective of the study:

To study about the Investors Behavior.

To find out the level of customer satisfaction towards stock broking.

To study the investment trend.

To suggest and attracts the individual investors.

To study the investor perception towards stock market.

To know the investment pattern of investors of financial security.

To study the profile of individual investors.

To know about where the investors are investing there earnings.

To determine the awareness level of investors about stock market.

For what purpose investors are investing their savings.

How much amount of savings the investors are investing.

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Limitation of the study:

Area covered for the survey within the Bijapur city.

Only 100 respondents were considered for the sample size.

The study is based on the random sampling.

Analysis of the data from questionnaires will be made on the assumption that the data

provided by the respondent are accurate.

Some respondents will not give accurate data.

Time give for this project is very less.

Proposed out comes and benefits of the study

The study focus on A study and analysis of investors behavior towards investing

in stock market with reference to Karvy. And they may get benefited through proper

analysis of investors behaviortowards the Stock market. The individual investors contribute

a major share in the capital formation. The company is required to give a due attention to

even small investors so that they are attracted to invest their savings.

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Table No1 Age of respondents.

Frequency Percent Valid Percent

Cumulative

PercentValid 20 - 40 54 54.0 54.0 54.0

41 - 60 39 39.0 39.0 93.0

60 and Above 7 7.0 7.0 100.0

Total 100 100.0 100.0

Graph no: 1

Interpretation: The above picture shows that 54% of respondents age was between 20-40,

39% of respondents age was between 41-60, 7% of respondents age was 61 and above.

Age

60 and Above41 - 6020 - 40

Percent

60

50

40

30

20

10

0

7.00%

39.00%

54.00%

Age

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Table No2 Gender of respondents.


Cumulative

PercentValid Male 96 96.0 96.0 96.0

Female 4 4.0 4.0 100.0

Total 100 100.0 100.0

Graph no: 2

Interpretation: The above picture shows that 96% of respondents are male and only 4%

respondents are Female.

Gender

FemaleMale

Percent

100

80

60

40

20

04.00%

96.00%

Gender

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Table No3 Occupation of respondents.

Graph no: 3

Interpretation: The above picture shows that 37% of respondents are Business mans, 33%

respondents are Professionals, 5% of respondents are govt employees, 6% of respondents are

students and rests of 19% are others.

Occupation

OtherStudentGovt employeeProfessionlBusiness man

Percent

40

30

20

10

0

19.00%

6.00%5.00%

33.00%

37.00%

Occupation

Frequency Percent Valid PercentCumulative

Percent

Valid Business man 37 37.0 37.0 37.0

Professional 33 33.0 33.0 70.0

Govt employee 5 5.0 5.0 75.0

Student 6 6.0 6.0 81.0

Other 19 19.0 19.0 100.0

Total 100 100.0 100.0

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Table No 4Monthly earnings of respondents.


Percent

Valid Below Rs.5000 31 31.0 31.0 31.0

Rs.5000 to Rs.25000 37 37.0 37.0 68.0

Rs.25000 to Rs.50000 18 18.0 18.0 86.0

Rs.50000 to Rs.100000 9 9.0 9.0 95.0

Rs.100000 and Above 5 5.0 5.0 100.0

Total 100 100.0 100.0

Graph no: 4

Interpretation: The above grape shows that 31% of respondents monthly income lies below

Rs.5000, 37% of respondents monthly income lies between Rs.5000 Rs.25000, 18%

respondents monthly income lies between Rs.25000Rs.50000, 9% of respondents monthly

income is between Rs.50000 Rs.100000 and 5% of respondents monthly income is

Rs.100000 and Above.

Monthly earnings

Rs.100000 and

Above

Rs.50000 to Rs.

100000

Rs.25000 to Rs.

50000

Rs.5000 to Rs.

25000

Below Rs.5000

Percent

40

30

20

10

0

5.00%

9.00%

18.00%

37.00%

31.00%

Monthly earnings

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Table No 5The existence of Karvy in Bijapur.


Cumulative

PercentValid Yes 86 86.0 86.0 86.0

No 14 14.0 14.0 100.0

Total 100 100.0 100.0

Graph no: 5

Interpretation: The above grape shows that 86% ofrespondents are aware the existence of

Karvy the Finapolis in Bijapur and rest (14%) of not aware.

the existence of Karrvy Finafolis

NoYes

Percent

100

80

60

40

20

0

14.00%

86.00%

the existence of Karrvy Finafolis

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Table No 6through these Medias came to know.


Percent

Valid Friends / Relatives 43 43.0 50.0 50.0

Executives 37 37.0 43.0 93.0

Business Magazines 6 6.0 7.0 100.0

Total 86 86.0 100.0

Missing System 14 14.0

Total 100 100.0

Graph no: 6

Interpretation: The above grape shows that 50% of respondents come to know about Karvy

from friends and relatives, 32% are from executives and remaining are from business

magazines.

How did you come to know about Karvy stock brocking?Business MagazinesExecutivesFriends / Relatives

Percent

50

40

30

20

10

07.00%

43.00%

50.00%

How did you come to know about Karvy stock brocking?

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Table No 7Financial services/products respondents know in Karvy.

Graph no: 7

Interpretation: The above grape shows that 82 respondents are aware of insurance, 64

respondents are aware of Equity trading, 56 respondents are aware of mutual funds, 49

respondents are aware of commodity trading,32 people know about IPO, 19 respondents

aware of Govt securities in Karvy Stock Broking.

0

10

20

30

40

50

60

70

80

90

Equitytradin

g

Commo

ditytradin

g

M

utualFu

nd

Insurance

Govts

ecuritie

sIP

O

Series1

Equity trading 64

Commodity trading 49

Mutual Fund 56

Insurance 82

Govt securities 19

IPO 32

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Table No 8Respondents want to invest money in share market.


Percent

Valid Yes 94 94.0 94.0 94.0

No 6 6.0 6.0 100.0

Total 100 100.0 100.0

Graph no: 8

Interpretation: The above grape shows that 94% of respondents are wanted invest there

money in share market and rest of 6% are not investing in stock market.

invest money in share market in future

NoYes

Percent

100

80

60

40

20

06.00%

94.00%

invest money in share market in future

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Table No 9Respondents prefer Karvy for investment.


Percent

Valid Yes 94 94.0 94.0 94.0

No 6 6.0 6.0 100.0

Total 100 100.0 100.0

Graph no: 9

Interpretation: Graph 9 rivals that 94% of respondents are prefer to investment in Karvy

and rest of 6% of respondents wants to invest through other stock brokers or they are not

interested in stock market.

Prefer karvy for your investment

NoYes

Percent

100

80

60

40

20

06.00%

94.00%

Prefer karvy for your investment

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Table No 10mode of investment.


Percent

Valid Share market61 61.0 64.9 64.9

IPO 6 6.0 6.4 71.3

Commodity trading 7 7.0 7.4 78.7

Govt securities 3 3.0 3.2 81.9

Mutual fund 11 11.0 11.7 93.6

Insurance 6 6.0 6.4 100.0

Total 94 94.0 100.0


Total 100 100.0

Graph no: 10

Interpretation: It is clear from above graph that the majority of respondents (59%) planed to

invest in share market, 17% of respondent prefer mutual fund, 6% of respondents prefer in

Commodity market, 5% prefer insurance, 4% prefer IPO, and 3% prefer government

securities.

mode of investment you prefer

InsuranceMutual fundGovt securitiesCommoditymarket

IPOShare market

F

requency

60

50

40

30

20

10

05

17

364

59

mode of investment you prefer

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Table No 11Frequency of investing.


Percent

Valid Daily 4 4.0 4.3 4.3

Weekly 14 14.0 14.9 19.1

Monthly 48 48.0 51.1 70.2

Quarterly 11 11.0 11.7 81.9

Half-Yearly 9 9.0 9.6 91.5

Yearly 8 8.0 8.5 100.0

Total 94 94.0 100.0


Total 100 100.0

Graph no: 11

Interpretation: Graph 11 shows that the majority of respondents (48%) invests monthly,

followed by weekly (14%), quarterly (11%), (9%) Half-yearly, (8%) yearly and 4% of the

respondents invests in Karvy.

What is the frequency of investment

YearlyHalf-YearlyQuaterlyMonthelyWeeklyDaily

Frequency

50

40

30

20

10

0

8911

48

14

4

What is the frequency of investment

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Table No 12Motivates to invest.


Percent

Valid Diversification of risk 14 14.0 14.9 14.9

Balancing of risk andreturn 18 18.0 19.1 34.0

Provision of old age 3 3.0 3.2 37.2

To earn stable andregular income 49 49.0 52.1 89.4

Capital appreciation 10 10.0 10.6 100.0

Total 94 94.0 100.0


Total 100 100.0

Graph no: 12

Interpretation: Graph 12 rivals that the majority of respondents (49%) agree that the motive

of their investment is to earn stable regular income, followed by Balancing of risk and

return(18%), diversification of risk(14%), provision of old age (3%) and capital appreciation

(10%).

Motivates to invest

Capital appriciationTo earn stable andregular income

Provision of old ageBalancing of riskand return

Divesrsification ofrisk

Fre

quency

50

40

30

20

10

0

10

49

3

1814

Motivates to invest

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Table No 13Holding of investment.


Percent

Valid Less than 6 months7 7.0 7.4 7.4

6 months to 1 Year 18 18.0 19.1 26.6

1-3 years 58 58.0 61.7 88.3

3-5 years 6 6.0 6.4 94.7

5 years and Above 5 5.0 5.3 100.0

Total 94 94.0 100.0


Total 100 100.0

Graph no: 13

Interpretation: It is clear from graph 13 that the majority of respondents (58%) hold their

investment for a period less

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