Beruflich Dokumente
Kultur Dokumente
Submitted in Partial Fulfillment for the Award of Degree of Master Of Business Administration
2009-2011
Jitendra Virahyas
JVIRAHYAS@GMAIL.COM
Preface
For management student theoretical knowledge as well as practical knowledge is must. Management of modern business requires an appreciation of multidisciplinary concept and in depth knowledge of specific analytical tools, geared to the solution of real life problems. No doubt every situation is unique but a set of theoretical tool of knowledge, itself based on empirical foundation, can help in developing the mechanism for handling such situation. Therefore, the MBA curriculum has been designed to provide practical exposure to the future manager. The project study is necessary for the fulfillment of MBA curriculum, it provide an opportunity to the researcher to understand industry with special emphasis on the development of skills in analysis, interpretation of practical problem through application of management.
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Acknowledgement
I express my sincere thanks to my project guide, Mr. Jitendra Virahyas, Regional Head(CAT) of Karvy, for guiding me right form the inception till the successful completion of the project. I sincerely acknowledge him for extending their valuable guidance, support for literature, critical reviews of project and the report and above all the moral support he had provided to me with all stages of this project. I would also like to thank the supporting staff Mr. Jitendra Virahyas Karvy Stock Broking Ltd. JAIPUR, for their help and cooperation throughout our project.
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Executive summary:This project has been a great learning experience for me; at the same time it gave me enough scope to implement my analytical ability. This project as a whole can be divided into two parts: The first part gives an insight about the DEMAT SERVICES and its various aspects. It
is purely based on whatever I learned at karvy. One can have a brief knowledge about DEMAT SERVICES and all its basics through the project. Other than that the real servings come when one moves ahead. Some of the most interesting questions regarding DEMAT SERVICES have been covered. Some of them are: why has it become one of the largest financial intermediaries? How investors do chose between funds? Most popular stocks among fund managers, most lucrative sectors for fund managers, a special report on Systematic Investment Plan, does fund performance persists and the topping of all the servings in the form of portfolio analysis tool and its application. All the topics have been covered in a very systematic way. The language has been kept simple so that even a layman could understand. All the datas have been well analyzed with the help of charts and graphs. The second part consists of data and their analysis, collected through a survey done
on 75 people. It covers the topic demat services of karvy stock broking ltd.. The data collected has been well organized and presented. Hope the research findings and conclusions will be of use. It has also covered why people dont want to go for financial
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advisors? The advisors can take further steps to approach more and more people and indulge them for taking their advices.
CONTENT 1. Introduction to the Industry 2. Introduction to the Organization 3. Research Methodology 3.1 Title of the Study 3.2 Duration of the Project 3.3 Objective of Study 3.4 Type of Research 3.5 Sample Size and method of selecting sample 3.6 Scope of Study 3.7 Limitation of Study 4. Facts and Findings 5. Analysis and Interpretation
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1. Passive Portfolio Strategy: A strategy that involves minimal expectation input, and instead relies on diversification to match the performance of some market index. A passive strategy assumes that the marketplace will reflect all available information in the price paid for securities 2. Active Portfolio Strategy: A strategy that uses available information and forecasting techniques to seek a better performance than a portfolio that is simply diversified broadly.
protecting the character, status and interest of native share and stock brokers and providing a hall or building for the use of the members of such association. As a meeting held in the broker Hall on the 5 th day of February, 1887, it was resolved to execute a formal deal of association and to constitute the first managing committee and to appoint the first trustees. Accordingly, the Articles of Association of the Exchange and the Stock Exchange was formally established in Bombay on 3 rd day of December, 1887. The Association is now known as The Stock Exchange. The entrance fee for new member was Re.1 and there were 318 members on the list, when the exchange was constituted. The numbers of members increased to 333 in 1896, 362 in 1916and 478 in 1920 and the entrance fee was raised to Rs.5 in 1877, Rs.1000 in 1896, Rs.2500 in 1916 and Rs. 48,000 in 1920. At present there are 23 recognized stock exchanges with about 6000 stock brokers. Organization structure of stock exchange varies. 14 stock exchanges are organized as public limited companies, 6 as companies limited by guarantee and 3 are non-profit voluntary organization. Of the total of 23, only 9 stock exchanges have been permanent recognition. Others have to seek recognition on annual basis. These exchange do not work of its own, rather, these are run by some persons and with the help of some persons and institution. All these are down as functionaries on stock exchange. These are 1. Stockbrokers 2. sub-broker 3. market makers 4. Portfolio consultants etc.
1.) Stockbrokers:- Stock brokers are the members of stock exchanges. These are the
persons who buy, sell or deal in securities. A certificate of registration from SEBI is mandatory to act as a broker. SEBI can impose certain conditions while granting the
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certificate of registrations. It is obligatory for the person to abide by the rules, regulations and the buy-law. Stock brokers are commission broker, floor broker, arbitrageur etc
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9000
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3.) Market Makers:- Market maker is a designated specialist in the specified securities.
They make both bid and offer at the same time. A market maker has to abide by bye-laws, rules regulations of the concerned stock exchange. He is exempt from the margin requirements. As per the listing requirements, a company where the paid-up capital is Rs. 3 crore but not more than Rs. 5 crore and having a commercial operation for less than 2 years should appoint a market maker at the time of issue of securities.
Broking Firms
A transaction on a stock exchange must be made between two members of the exchange a typical person may not walk into the New York Stock Exchange (for example), and ask to trade stock. Such an exchange must be done through a broker. There are three types of stock broking service.
Execution-only, which means that the broker will only carry out the client's instructions Advisory dealing, where the broker advises the client on which shares to buy and sell, Discretionary dealing, where the stockbroker ascertains the client's investment
to buy or sell.
objectives and then makes all dealing decisions on the client's behalf. In addition to actually trading stocks for their clients, stock brokers may also offer advice to their clients on which stocks, mutual funds, etc. to buy.
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Traditionally, full-service stock brokers were the only type that was available. They charged very high commission fees but also gave a lot of help and guidance in choosing the right investments. In 1975, all of that changed and the discount stock brokers became the reigning champs of the investing world. In the last decade, the internet has permitted individual investors to research their own potential stocks for themselves, and even buy and sell stocks. There have been advantages to the arrival of the discount stock broker and online brokerage firm, but for some investors it has led to more mistakes in a smaller time. The key is doing your research and investing wisely. On one end of the spectrum are the discount and online stock brokers. These brokerage firms act as order takers for their investors. The investor places an order on the telephone or online. The only help given is with the technical aspects of the website or the ordering process. There is no guidance given as to which stocks to buy, when to buy or when to sell. Many online brokerage firms offer their members access to stock market research, but this is provided by a third party. The account management tools help you understand how greatly you have invested and where it is going. These tools are generally online or downloadable. The discount and online stock brokers are for people either already familiar with the stock market, or those who do not have much money to invest. They do require that the investor spend some time researching and planning their investments. If you are interested in doing your own research or want to dodge hefty brokerage fees than discount and online brokers may be for you. The next level in service is a discount or online brokerage with an assistance stock broker. The assistance stock broker will give a small amount of help. In online brokerage firms, the assistant stock broker takes the form of offering more research available and newsletters with investing tips. There is still a quantity of research that wants to be done by the individual investor, but these brokerages at least point their clients in the correct direction. The traditional full service stock broker provides recommendations for specific shares that would be good for your portfolio. The stock broker analyzes your financial situation to figure out your needs. They put together an investing plan that is reviewed periodically and adjusted as needed. Full-service stock brokers are an admirable choice for those who dont 12
have the time or the interest in staying on top of the newest economic news. The full service stockbroker does all the research for you and presents you with the best investments for your situation. Their clients are handled with awareness to special details and goals. This awareness does come with hefty commission fees, but considering the quantity of work and dedication that full service stock brokers give, these fees are understandable. Traditional full-service brokers make money based on the quantity of transactions they facilitate. A money manager is one level up from a full-service stock broker in their level of economic services. Money managers (also called economic advisors) will work with clients to develop their total financial picture, which may or may not include investing in stocks. Money managers support stocks and bonds for clients. Each one has his or her own exclusive style and so it is important that you decide wisely to make sure your money manager has the same economic philosophy that you do. A professional money manager does not collect commissions on transactions. They are salaried from a percentage of the assets under their management. In that way, they are working for you and themselves at the same time. If your portfolio grows, their commission will grow as well.
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Organization overview
Introduction
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Success is a journey, not a destination. If we look for examples to prove this quote then we can 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.
Vision of KARVY
To achieve & 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 customer's satisfaction and set industry standards.
Mission statement
To be a leading, preferred service provider to our customer, and 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.
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COMPANY PROFILE
KARVY is founded by a group of Hyderabad based CHARTED ACCOUNTANTS in 1982 as a professional service firm. In the span of 25 years, KARVY has traveled the success route, towards building a reputation as an integrated financial services provider, offering a wide spectrum of services. KARVY has 575 offices over 375 locations across India and overseas at Dubai and Newyork. Around 600000 active business associates are being attached with KARVY across the country. It also comprises of 9000 highly qualified employees and professionals. Karvy was established as karvy and company by five 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.150000. 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 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 blossomed 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
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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 centers were set up in the year 1992. Karvy which already enjoyed a wide network through its investor service centers, entered into financial product distribution services in the year 1993. One year more and karvy was now dealing into mutual fund services too in the year 1994 but it didnt stopped there, it stepped into corporate finance and investment banking in the year 1995. 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 through its website www.karvy.com . Then it entered into insurance services in the year 2001 with the launch of its retail arm karvy- the finapolis: your personal finance advisor. Then in the year 2002 it launched its PCG(Private Client Group) which looks after its High Networth Individuals .and maintain their portfolio and provides them with other financial services. In the year 2003, it commenced secondary debt and WDM trading. It was a decade which saw many Indian companies going global..so why the largest financial service provider of India should lag behind? Hence, karvy launched karvy global services limited after entering into a joint venture with Computershare, Australia in the year 2004.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 and in the same year, after being impressed with the rapid growth of karvy stock broking limited, PCG group of Hong Kong acquired 25% stake at KSBL. In the year 2006, 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 lagest financial service provider of the country.
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KARVY GROUP
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KARVY GROUP
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1.
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 we received for our customer friendly and competent services.
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: karvy stock broking ltd. Consists of five units namely stock broking
servics, depository participant, advisory services, distribution of financial products, advisory services and private client goups.
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includesinclude leading corporates, State Governments, foreign institutional investors, public and private sector companies and banks, in Indian and global markets.
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: karvy insurance broking ltd is also a part of karvy stock broking ltd. At
Karvy Insurance Broking Limited both life and non-life insurance products are provided to retail individuals, high net-worth clients and corporates.
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Indian Commodities Markets. And most importantly, it offer a wide reach through our branch network of over 225 branches located across 180 cities.
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: Karvy Global is a leading business and knowledge process inurance, healthcare and pharmaceuticals,
outsourcing Services Company offering creative business solutions to clients globally. It operates in banking and financial services, media , telecom and technology. It has its sales and business development office in New York, USA and the offshore global delivery center in Hyderabad, India
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7. : Karvy Realty (India) Limited is engaged in the business of real estate and property services offering: Buying/ selling/ renting of properties
Identifying valuable investments opportunities in the real estate sector Facilitating financial support for real estate and investments in properties Real estate portfolio advisory services
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In spite of all this KARVY has its RESERCH CENTER in Hyderabad and also a member of Hyderabad Stock exchange. It is also a member of National Stock Exchange and Bombay Stock Exchange.
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directors. The board of diretors head the karvy group, karvy computershares limited, karvy investors services ltd., karvy comtrade, karvy stock broking ltd., and karvy global services ltd. Karvy group being the flagship company looks after the functional departments such as corporate affairs, group human resources, finance & accounting, training & development, technology services and corporate quality. Karvy computershare private limited facilitates mutual fund services, share registry and issue registry whereas merchant banking is looked after by karvy investor services ltd. Karvy stock broking ltd heads its another branch too ie. Karvy insurance broking ltd. The services offered by KSBL are: stock broking, depository, research, distribution, personal client group and institutional desk. And finally the BPO services are managed by karvy global services ltd.Summarizing it in a diagram, it can be presented as:
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Karvy being the top registrar and transfer agent, functions as registrar in most of the issues in the country. Talking about the mutual fund services offered by karvy, we can get the products of 33 AMCs over here. it deals in both closed ended funds as well as open ended too. Now one must be thinking why to get the mutual funds from karvy instead of getting it directly from AMCs???we have great reasons for it: the first one being ; if we avail the services of karvy then we can get the information about all the AMCs and their products at a single place along with expert recommendations whereas at an AMC we can get information about the products of that specific AMC only. And the second being wide network of karvy.nowadays we can find karvy offices at remote areas too. Along with these, karvy is very well handling the role of depository participant. Being registered with both the depositories i.e.; NSDL (national securities depository ltd) and CDSL (central depository services ltd), karvy can have access to both. Its wide network also facilitates it in distribution of retail financial products. Karvy believes in being updated always. So it is always ready to use latest technologies so that its clients always be in touch with the latest happenings along with karvy. It offers ebusiness through internet through its website: www.karvy.com . Other than it, it also provides its various services through SMSes. Karvys services are not limited to its investors only rather its offerings are for its corporate clients and distributors too. it is very well aware of the fact that in this era of neck to neck competition, we cant ignore any of the aspects of our business.so theres a offering for everybodyeveryones welcome at karvy.
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Achievements of the KARVY :The landmarks achieved by karvy very well define its success story. In the previous pages, we learnt how a company started by five chartered accountants, named as karvy and company turned into todays karvy group, the largest financial intermediary of India. But success didnt came to karvy at a flow, the hard work and dedication of its workforce made it what it is todaygradually it achieved the following landmarks and now it has became what we call the karvy group, now it is: 1. Largest independent distributor for financial products. 2. Amongst the top 5 stock broker. 3. Among the top 3 depository participants. 4 largest networks of branches & business associates. 5 . ISO 9002 certified operations by DNV.
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6. Amongst top 10 investment bankers. 7. Adjudged as one of the top 50 IT users in India by MIS south Asia. 8. Full- fledged IT driven operation. 9. Indias no.1 registrar & securities transfer agent.
Clientele of karvy
Karvys culture has helped karvy in achieving such a distinct position in the market where it can boast of its huge client base. Be it a retail investor investing Rs. 500 in a SIP in Reliance mutual fund or be it the largest corporate house of the country: Reliance industrieseverybody is heading towards karvy for their wealth maximization, lets have a look at the clientele of karvy: According to the datas published in year 2007, karvy stock broking ltd. Operates through more than 12000 terminals, more than 290000 accounts are maintained and commands over 3.14% market share of NSE. The distribution services have access to more than Rs. 40 billion Assets under Management. Karvy being a depository participant with both NSDL and CDSL manages more than 700000 accounts from more than 380 locations. Talking about the registry services, it manages over 750 public/ right issues. at the same time, it is managing over 16 million portfolios as registars. If we took a look at some of the top corporate houses availing the services of karvy then we have: Reliance, IOC, IDBI,LIC, Hindustan Unilever, Principal Mutual Fund, Duetsche Mutual Fund, Yogokawa, Marico Industries, Patni Computers, Morgan Stanley, Glenmark, CRISIL, 3M, Kotak Mahindra Bank, Bharti Televenture, Infosys Technologies, Wipro, InfoTech, IPCL,TATA consultancy services, UTI mutual fund etc. Thus in total karvy serves over 16 million investors and 300 corporate.
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The above diagram shows the hierarchy of Karvy stock broking ltd. It can be easily depicted from the diagram that the regional head (presently Mr. Alok Chaturvedi) is the supreme in the eastern region, under whom the various zonal heads operate and under these zonal heads, the branch heads operate. Between each level o the hierarchy, there exists a coordinator, who acts as the facilitator between the different heads.
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REGIONAL HEADS
Realty
PRODU CT HEADS
Debt division
Mutu al funds
Stock brokin g
PMS
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Karvy Investor Services Limited :Deepening of the Financial Markets and an ever-increasing sophistication in corporate transactions, has made the role of Investment Bankers indispensable to organizations seeking professional expertise and counselling, in raising financial resources through capital market apart from Capital and Corporate Restructuring, Mergers & Acquisitions, Project Advisory and the entire gamut of Financial Market activities. Karvy Investor Services Limited (KISL), a SEBI registered Merchant Banker has emerged as a leading Investment Banking entity in the country with over a decade of experience. KISL has built its reputation by capitalizing on its qualified professionals, who have successfully executed a large number of complex and unique transactions. Our quality professional team and our work-oriented dedication have propelled us to offer value-added corporate financial services and act as a professional navigator for long term growth of our clients, who include leading corporates, State Governments, Foreign Institutional Investors, public and private sector companies and banks, in Indian and global markets. We have also emerged as a trailblazer in the arena of relationships, both at the customer and trade levels because of our unshakable integrity, seamless service and innovative solutions that are tuned to meet varied needs. Our team of committed industry specialists, having extensive experience in capital markets, further nurtures this relationship.
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Credentials
Emerging as a leading Investment Banker with a strong support from its Group entities in Research, Stock Broking, Institutional Sales and Retail Distribution. Strong team of more than 25 qualified professionals operating from six cities; Hyderabad, Mumbai, Delhi, Kolkata, Chennai, and Bangalore apart from two overseas offices at New York (USA) and Dubai. One of the largest retail distribution networks with over 584 branches in over 389 cities/towns.
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We have actively participated in marketing bond issues of corporations from the States of Andhra Pradesh, Maharashtra, Karnataka & Gujarat and debt issues of all the Financial Institutions like IDBI, ICICI, IFCI, REC, PFC, SIDBI, etc. and also acted as Arrangers for few of the mandates.
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Capital Issues:- CMG takes an integrated approach while providing services to its
clients. We undertake management of public issues under the Book Building method and Fixed Price method. Our offerings include IPO, FPO, Rights Issue, Preferential Issues, (QIPs) and Debt placements. We focus on organizations growth and success in the long term by constantly advising them on various strategies for growth.
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Debt Private Placements:- The assistance provided by our team in Debt Private
Placements helps the companies to get the most appropriate source of financing
Buybacks:- CMG advises its clients on the need for a buyback and the mode to be
adopted given the prevailing market conditions. We help the companies to optimally price the buyback and carry out all the due diligence and regulatory activities involved.
Need for a takeover and locating Target Company Advise on various takeover strategies that should be adopted for strategic business plans of clients and carry out the regulatory procedures involved
Financial Analysis and Valuation of the Target Company Our teams professional and analytical approach provides unique insights to our clients and ensures that synergy is created between organizations
Advises and ensures various compliances involved in takeover, specifically related to, SEBI Rules/ Regulation in case of listed entities
Securities issued upon exercise of option under ESOPs/ESOS for calculation of Fringe Benefit Tax (`FBT`)
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Securities issued upon scheme of arrangement for listing on Stock Exchanges For re-instatement of listing Securities issued upon acquisition of overseas companies for RBI/FIPB
Delisting
CMG advises companies on the need for delisting, which is executed by our team of qualified professionals with highest service standards and adhering to all regulatory requirements.
ESOPs/ESPS
We assist organizations in designing and structuring of ESOP scheme including Secretarial Compliance, pricing and related matters. We ensure that the schemes are in compliance with the relevant guidelines and certify Schedule V for obtaining inprinciple approval from the Stock Exchanges.
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Banquet of Services
Equity Placement
Debt Syndication
Corporate Advisory
Equity Placements:
Corporate Finance Group (CFG) assists companies in their equity fund raising activities and provides end-to-end advisory solutions to companies in high-growth markets on their capitalization/re-capitalization strategies. CFG leverages its network of relationships with various funds managers, Private Equity & Venture Capital Firms while raising equity funding for Corporates. The team is well equipped to understand and formulate business plans of companies, structure their fund raising programs, equity dilution etc and help them raise funds from the public markets as well as from the private markets by placing all forms of equity like Private Placement of Equity
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Debt Syndication:
CFG assists private and public companies in strengthening their balance sheets by delivering capital structure alternatives designed to provide a solid foundation for continued growth and the creation of long-term shareholder value. KISL acts as a placement intermediary to assist clients with both secured and unsecured debt syndications in various forms like Project Financing Term Loan External Commercial Borrowing (ECB) Working Capital Loan Mezzanine Financing
CFG has strong relationships with various Banks, NBFCs, and Financial Institutions
Corporate Advisory:
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CFG has a dedicated Corporate Advisory Team that offers complete corporate advisory services to Indian and overseas corporate bodies. The team has a wide sectorial experience and skillset in carrying out the project appraisals i.e. financial appraisals / business appraisals for various projects including greenfield projects. The team specializes and provides the following services: Formulating Business Plan Public Private Partnership Advisory Strategic Project Advisory Business Valuation Project Identification Corporate Restructuring
Karvys Corporate Finance Group couples extensive experience and expertise with an intense commitment to build meaningful long-term client relationships Investment Banking and Corporate Finance team has collective
experience of over 100 years with expertise in a variety of transaction across sectors
Past Transactions
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Sole Advisor
Sole Advisor
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India began in the 1860s during the American Civil War that led to a sudden surge in the demand for cotton from India resulting in setting up of a number of joint stock companies that issued securities to raise finance. This trend was akin to the rapid growth of securities markets in Europe and the North America in the background of expansion of railroads and exploration of natural resources and land development.
Historical records show that as early as 1864, there were about 1,000 brokers with the stock markets functioning from three places in Mumbai; between 9 am to 7 pm at the junction of Meadows Street and Rampart Row, from day break till 9 am and from 7 pm to early hours of next morning at Bazargate. Share prices rose sharply even at that time. A share of Colaba Land Company during the boom period of the 1860s rose from Rs 10,000 at par to Rs 120,000 and that of Backbay Shares went up from Rs 2,000 to Rs 54,000. Bombay, at that time, was a major financial centre having housed 31 banks, 20 insurance companies and 62 joint stock companies.
Reports on stock markets around that time indicate that an ordinary broker in 1864 earned about Rs 200 per day, a huge sum in those days. The boom period came to an abrupt end in 1865. In Jul 1865, what was then used to be called the share mania ended with burst of the stock market bubble? Never had I witnessed in any place a run s of such prosperity thus wrote Richard Temple, who served as the Governor of Bombay at that time. An interesting aspect is that despite the collapse of the stock market, most of the brokers met their payment commitments. In the aftermath of the crash, banks, on whose building steps share brokers used to gather to seek stock tips and share news, disallowed them to gather there, thus forcing them to find a place of their own, which later turned into the Dalal Street. A group of about 300 brokers formed the stock exchange in Jul 1875, which led to the formation of a trust in 1887 known as the Native Share and Stock Brokers Association. A unique feature of the stock market development in India was that that it was entirely driven by local enterprise, unlike the banks which during the pre-independence period were owned and run by the British. Following the establishment of the first stock exchange in Mumbai, other stock exchanges came into being in major cities in India, namely Ahmedabad (1894),
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Calcutta (1908), Madras (1937), Uttar Pradesh and Nagpur (1940) and Hyderabad (1944). The stock markets gained from surge and boom in several industries such as jute (1870s), tea (1880s and 1890s), coal (1904 and 1908) etc, at different points of time.
DEMATERIALISATION:Dematerialisation is a process in which you can convert physical share certificates into electronic shares. Shares should have been transferred in your name / joint names before sending it for dematerialisation. You have the option to hold shares either in the physical OR in the dematerialized form. This is as per the Depositories Act, 1996.However, when you buy shares you may receive delivery in the demat form as per the option of the seller.
REMETRIALISATION:It is the process by which a client can get his electronic holdings converted into physical certificates. The client has to submit the rematerialisation request to the DP with whom he has an account. The DP enters the request in its system which blocks the clients holdings to that extent automatically. The Issuer / R& T agent then prints the certificates, dispatches the same to the client and simultaneously electronically confirms the acceptance of the request to NSDL. Thereafter, the clients blocked balances are debited.
PLEDGE
To deposit personal property as security for a personal loan of money. If the loan is not repaid when due, the personal property pledged shall be forfeit to the lender. A client (pledged) having a beneficiary account with a Depository Participant can pledge securities in electronic form against loan / credit facilities extended by a pledge, which too has a beneficiary account with a Depository Participant.
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trusts, being run on no-profit basis. NSE was recognized as a stock exchange under the Securities Contracts (Regulations) Act 1956 in Apr 1993. It commenced operations in wholesale debt segment in Jun 1994 and capital market segment (equities) in Nov 1994. The setting up of the National Stock Exchange brought to Indian capital markets several innovations and modern practices and procedures such as nationwide trading network, electronic trading, greater transparency in price discovery and process driven operations that had significant bearing on further growth of the stock markets in India. Faster and efficient securities settlement system is an important ingredient of a successful stock market. To speed the securities settlement process, The Depositories Act 1996 was passed that allowed for dematerialisation (and rematerialisation) of securities in depositories and the transfer of securities through electronic book entry. The National Securities Depository Limited (NSDL) set up by leading financial institutions, commenced operations in Oct 1996. Regulations governing selection of various types of market intermediaries as depository participations were made. Subsequently, Central Depository Services (India) Limited promoted by Bombay Stock Exchange and other financial institutions came into being.
Rapid Growth
The last decade has been exceptionally good for the stock markets in India. In the back of wide ranging reforms in regulation and market practice as also the growing participation of foreign institutional investment, stock markets in India have showed phenomenal growth in the early 1990s. The stock market capitalization in mid-2007 is nearly the same size as that of the gross domestic product as compared to about 25 percent of the latter in the early 2000s. Investor base continued to grow from domestic and international markets. The value of share trading witnessed a sharp jump too. Foreign institutional investment in Indian stock markets showed continuous rise reaching about USD10 bn in each of these years between FY04 to FY06. Stock markets became intensely technology and process driven, giving little scope for manual intervention that has been the source of market abuse in the past.
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Electronic trading, digital certification, straight through processing, electronic contract notes, online broking have emerged as major trends in technology. Risk management became robust reducing the recurrence of payment defaults. Product expansion took place in a speedy manner. Indian equity markets now offer, in addition to trading in equities, opportunities in trading of derivatives in futures and options in index and stocks. ETFs are showing gradual growth. Within five years of introduction of derivatives, Indian stock markets now are ranked first in stock futures and fourth in index futures. Indian stock markets are transaction intensive and thus rank among the top five markets in this regard. Stock exchange reforms brought in professional management separating conflicts of interest between brokers as owners of the exchanges and traders/dealers. The demutualization and corporatisation of all stock exchanges is nearing completion and the boards of the stock exchanges now have majority of independent directors. Foreign institutions took stake in Indias two leading domestic stock exchanges. While NYSE Group led consortium took stake in the National Stock Exchange, Deutsche Borse and Singapore Stock Exchange bought equity in the Bombay Stock Exchange Ltd. The smooth functioning of all these activities facilitates economic growth in that lower costs and enterprise risks promote the production of goods and services as well as employment.
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 ones options with care. This is what it provides in their Stock Broking services. Karvy Stock Broking Ltd. offer services that are beyond just a medium for buying and selling stocks and shares. Instead it provides services which are multi dimensional and multi-
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focused in their scope. There are several advantages in utilizing our Stock Broking services, which are the reasons why it is one of the best in the country. . Karvy offers trading on a vast platform; National Stock Exchange, Bombay Stock Exchange and Hyderabad Stock Exchange. More importantly, it make trading safe to the maximum possible extent, by accounting for several risk factors and planning accordingly. It is assisted in this task by our 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. .
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, it is a powerful medium for trading and settlement of dematerialized shares. Karvy has 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-e; make their response time quick and their delivery impeccable. A wide national network makes their efficiencies accessible to all.
The paradigm shift from pure selling to knowledge based selling drives the business today. With our wide portfolio offerings, Karvy occupy all segments in the retail financial services industry. A 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 them 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.
ADVISORY SERVICES:-
Under their retail brand KARVY the Finapolis, it delivers advisory services to a crosssection 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 made possible by the expertise it has 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 thlatest of market news, trends, investment schemes and research-based opinions from experts in various financial fields.
DEPOSITORY SYSTEM:A Depository is a facility for holding securities, which enables securities transactions to be processed by book entry. To achieve this purpose, the depository may immobilize the securities or dematerialise them (so that they exist only as electronic records). India has chosen the dematerialisation route. In India, a depository is an organisation, which holds the beneficial owners securities in electronic form, through a registered Depository Participant
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(DP). A depository functions somewhat similar to a commercial bank. To avail of the services offered by a depository, the investor has to open an account with a registered DP Dematerialisation is a process by which physical certificates are converted into electronic form. Dematerialisation of securities occurs when securities issued in physical form are destroyed and an equivalent number of securities are credited into the beneficiary owners account. India has adopted dematerialisation route to depository. In a depository system, the investors stand to gain by way of efficient settlements, lower costs and lower risks of theft or forgery, etc. But the implementation of the system has to be secure and well governed. All the players have to be conversant with the rules and regulations as well as with the technology for processing. The intermediaries in this system have to play strictly by the rules. In the depository system, securities are held in depository accounts, which is more or less similar to holding funds in bank accounts. Transfer of ownership of securities is done through simple account transfers. This method does away with all the risks and hassles normally associated with paperwork. Consequently, the cost of transacting in a depository environment is considerably lower as compared to transacting in certificates.
DEPOSITORY PARTICIPANT:The depositories can provide their services to investors through their agents called depository participants. These agents are appointed subject to the conditions prescribed under Securities and Exchange Board of India (Depositories and Participants) Regulations, 1996 and other applicable conditions. It may be organisations involved in the business of providing financial services like banks, brokers, custodians, financial institutions, etc.
national infrastructure of international standards that handles most of the securities held and settled in dematerialised form in the Indian capital market. Using innovative and flexible technology systems, NSDL works to support the investors and brokers in the capital market of the country. NSDL aims at ensuring the safety and soundness of Indian marketplaces by developing settlement solutions that increase efficiency, minimise risk and reduce costs. At NSDL, we play a quiet but central role in developing products and services that will continue to nurture the growing needs of the financial services industry.
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SERVICES OF DEPOSITORY :A depository established under the Depositories Act can provide any service connected with recording of allotment of securities or transfer of ownership of securities in the record of a depository. Any person willing to avail the services of the depository can do so by entering into an agreement with the depository through any of its participants. A depository can provide depository services only through a DP. A depository cannot directly open accounts and provide services to clients. Every depository in its Bye-Laws must state which securities are eligible for Demat holding. Generally, the following securities are eligible for Dematerialisation:
Shares, scrips, stocks, bonds, debentures, debenture stock or other marketable securities of a like nature in or of any incorporated company or other body corporate.
Units of Mutual Funds, rights under collective investment schemes and venture capital funds, Commercial paper, Certificates of Deposit, Securitised debt, money market instruments, government securities, National Saving Certificates, Kisan Vikas Patra and unlisted securities.
DEPOSITORY
SERVICE
CHARGES
FOR
RESIDENTS
RETAIL
4.
Agreement stamp paper As per respective As per state Act respective state Act
5. Buy- Market and Off-market (%of 0.02 %( Min. Rs. Nil transaction value of each ISIN)- 20) maximum rs. 500/for debt instrument. Sell market and off market (%of ..0. ...0.0 transaction value of each IsIN)-Max 04%( Min Rs.10 ) 2% (Min Rs. 5 ) Rs. 500 for debt instrument for each instruction for each instruction 6. Rejection / fails. Rs. 20 Rs 10 7. Extra charges for processing of Rs.10per IsIN / R. 10 per ISIN TIFDs Submitted late (%of transaction value ) * On the execution date (accepted at clients risk ) 8. For each request form. Rs. 35 9. Extra for each certificate. Rs. 2 10. Dematerialization. Rs.20 11. Closure of account. Nil 12. Pledge creation / closure/ o.o2 % ( Min 0.02% (Min Rs. confirmation/ invocation (%Of
value Rs.20) 20) for each ISIN in each request). 13. Addition account statement. Rs.20
NSDL CHARGES ARE CHARGEABLE EXTRA AT ACTUAL .PRESENT NSDL CHARGES ARE: Sell-Market and Of - Market Rs. 8/-per debit instruction nil for commercial
paper and short term debt instruments. Remat Rs. 10/-per certificate Pledge Creation Rs.25/per instruction Custody Fee( on the basis of ISINs Rs. The value of 1/-per ISINs in the account on the last Saturday of each month) There will be shares and charges and calculated as per NSDL formula and rates. Charge of Rs.100/-for dishonor of any cheque . The depository services are liable to discontinuation if Karvy is unable to recover charges from the customer, for any reason whatsoever. There will be a charge of Rs. 100/- Any service, which is not 54
mentionedresumption of services in such cases. above, will be charge separately as per the rates applicable from time to time. Karvy reserves the right to revise the tariff structure from time to time with a notice of 30 days. The notice may be given by ordinary post or by an advertisement in a national daily.
FUNCTIONS OF DEPOSITORY:1. Dematerialisation:- One of the primary functions of depository is to eliminate or minimise the movement of physical securities in the market. This is achieved through Dematerialisation of securities. Dematerialisation is the process of converting securities held in physical form into holdings in book entry form. 2. Account Transfer: The depository gives effects to all transfers resulting from the settlement of trades and other transactions between various beneficial owners by recording entries in the accounts of such beneficial owners. 3. Transfer and Registration: A transfer is the legal change of ownership of a security in the records of the issuer. For effecting a transfer, certain legal steps have to be taken like endorsement, execution of a transfer instrument and payment of stamp duty. The depository accelerates the transfer process by registering the ownership of shares in the name of the depository. Under a depository system, transfer of security occurs merely by passing book entries in the records of the depositories, on the instructions of the beneficial owners. 4. Corporate Actions: A depository may handle corporate actions in two ways. In the first case, it merely provides information to the issuer about the persons entitled to receive corporate benefits. In the other case, depository itself takes the responsibility of distribution of corporate benefits.
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5. Pledge and Hypothecation: The securities held with NSDL may be used as collateral to secure loans and other credits by the clients. In a manual environment, borrowers are required to deliver pledged securities in physical form to the lender or its custodian. These securities are verified for authenticity and often need to be transferred in the name of lender. This has a time and money cost by way of transfer fees or stamp duty. If the borrower wants to substitute the pledged securities, these steps have to be repeated. Use of depository services for pledging/ hypothecating the securities makes the process very simple and cost effective. The securities pledged/hypothecated are transferred to a segregated or collateral account through book entries in the records of the depository 6. Linkages with Clearing System: Whether it is a separate clearing corporation attached to a stock exchange or a clearing house (department) of a stock exchange, the clearing system performs the functions of ascertaining the pay-in (sell) or pay-out (buy) of brokers who have traded on the stock exchange. Actual delivery of securities to the clearing system from the selling brokers and delivery of securities from the clearing system to the buying broker is done by the depository. To achieve this, depositories and the clearing system should be electronically linked.
BENEFITS:The direct and indirect benefits of the depository system are described in detail below. In the depository system, the ownership and transfer of securities takes place by means of electronic book entries. At the outset, this system rids the capital market of the dangers related to handling of paper.
transfer deed and share certificates are completely eliminated since both transfer deed and share certificates are eliminated in depository system.
No stamp duty:- There is no stamp duty for transfer of equity instruments and
units of mutual funds in the depository system. In the case of physical shares, stamp duty of 0.5% is payable on transfer of shares.
Buyer is secured:- In the physical environment, seller was secured since the sale
proceeds were always fully realisable but the buyer was not, since it was not certain
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whether shares purchased will get transferred or not. The market principle that buyer is king did not apply to the capital market. This situation has now been corrected.
volumes of transactions. NSDL has recently introduced a common internet based platform, SPEED-e, for Clients of all DPs so that Clients can issue instructions to their DPs through Internet. Using SPEED-e the client need not write delivery instructions or visit its DP for issuing instructions. Clients can monitor the status of instructions given by them on SPEED-e on Internet.
Dematerialised
Elimination of problems related to change of address of investors, transmission, etc.:- In case of change of address or transmission of Demat
shares, investors are saved from undergoing the entire change procedure with each company or registrar. Investors have to only inform their DP about the change along with all relevant documents. The required changes are effected in the database of all the companies where the investor is a registered holder of securities. The investor will receive all cash corporate benefit like dividends, interest warrants, redemption money, etc. at the new address with immediate effect.
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Elimination of problems related to selling securities on behalf of a minor:- NSDL system provides facility for opening demat accounts in the name of
minor and holding their securities in their own name. Since, under the Contract Act, 1872, the minor is not eligible to enter into contracts at their own, the account in the name of minor is required to be operated by their guardian. The guardian may be the natural guardian, guardian appointed by will or the guardian appointed by an order of the court. The minors guardian will be eligible to open, operate and close the account on behalf of the minor. The guardian(s) would be signing the instruction slips to be given to the depository participant, on behalf of the minor. A minor however cannot be a joint account holder. Non cash corporate benefits arising out of bonus/rights allotment of shares are credited to the account of the minor. Cash corporate benefits will be issued by the concerned issuer of securities in the name of the minor.
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DEMAT PROCESSING IN KARVY STOCK BROKING LTD:Karvy Stcok Broking Ltd. is one of the leading Depository Participant (DP) in the country. Karvy Demat services offers the investors a secure and convenient way to keep track of their securities and investments, over a period of time, without the hassle of handling physical documents that get mutilated or lost in transit. Karvy Stcok Broking Ltd. is Depository particpant both with -National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL). Karvy Demat services are accessable any of its network over 575 branches / investor service centre located in over 375 cities and towns across the country. Karvy Demat services business has a distinction of having all its operations ISO 9001:2000 certified with the state of the art-technology and operations capabilites. Its Demat services have innovated over time and it provides online access to the account statements and transaction alerts through SMS to its clients.
DEMAT ACCOUNT:Demat refers to a dematerialised account. Just as open an account with a bank if public want to save thier money, make cheque payments etc, the investor need to open a demat account if he want to buy or sell stocks. So it is just like a bank account where actual money is replaced by shares. The investors have to approach the DPs (remember, they are like bank branches), to open their demat account. Lets say the investor Mr. Xs portfolio has 100 of Satyam, 200 of Reliance and 120 of TCS shares. All these will show in his demat account. So, his doent has to possess any physical certificates showing that he own these shares. They are all held electronically in his account. As he buy and sell the shares, they are
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adjusted in his account. Just like a bank passbook or statement, the DP will provide the investor with periodic statements of holdings and transactions.
NEED OF DEMAT ACCOUNT:Nowadays, practically all trades have to be settled in dematerialised form. Although the market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of upto 500 shares to be settled in physical form, nobody wants physical shares any more. So a demat account is a must for trading and investing. The demat account reduces brokerage charges, makes pledging / hypothecation of shares easier, enables quick ownership of securities on settlement resulting in increased liquidity, avoids confusion in the ownership title of securities, and provides easy receipt of public issue allotments. It also helps you avoid bad deliveries caused by signature mismatch, postal delays and loss of certificates in transit. Further, it eliminates risks associated with forgery, counterfeiting and loss due to fire, theft or mutilation. Demat account holders can also avoid stamp duty (as against 0.5 per cent payable on physical shares), avoid filling up of transfer deeds, and obtain quick receipt of such benefits as stock splits and bonuses.
STEPS INVOLVED IN OPENING A DEMAT ACCOUNT:First, an investor who wants to open a Demat Account to dematerialise their holdings has to approach a Karvy and fill up an account opening form. The account opening form must be supported by copies of any one of the approved documents to serve as proof of identity (POI) and proof of address (POA) as specified by SEBI. Besides, production of PAN card in original at the time of opening of account has been made mandatory.
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All applicants should carry original documents for verification. Further, the investor has to sign an agreement with Karvy in a depository prescribed standard format, which details rights and duties of investor and DP (Karvy). Karvy provides the investor with a copy of the agreement and schedule of charges for their future reference. After verification of the entire certificate, Karvy opens the account in the system and gives an account number, which is also called BOID (Beneficiary Owner Identification number). SEBI has rationalised the cost structure for processing of Demat account account opening charges, transaction charges for credit of securities, and custody charges. The Karvy may revise the charges by giving 30 days notice in advance. No charges shall be levied by Karvy for transfer of the securities lying in his account to another branch or to another DP of the same depository or another depository. In case the BO Account at transferor DP is a joint account, the BO Account at transferee DP should also be a joint account in the same sequence of ownership.
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PROCEDURE:1. Filling account opening form (available with Karvy). 2. Submitting the duly filled account opening form with introduction documents as may be required. 3. Signing in the agreement with Karvy (agreement will state rights & obligations of both parties). The agreement will contain the fee structure of Karvy. Karvy would give the client a copy of this signed agreement for his record. 4. Karvy would give him Client Id no. (Account No.) once his depository account is opened. This Client Id Number along with Karvy Id Number forms a unique combination. Both of these should be quoted in the future correspondence with Karvy/NSDL/ Issuing Company/their registrar & transfer (R&T) agent. 5. Karvy would give to his clients pre-printed instruction slips for depository services viz., dematerialisation, delivery instruction for trades, etc.. It should be preserved carefully. 6. Karvy would give a list of deadlines for giving instructions for various depository activities viz., transfer for effecting sale, purchase, etc.
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TYPES OF ACCOUNTS:Type of depository account depends on the operations to be performed. There are three types of Demat accounts which can be opened with Karvy. Beneficiary Account Clearing Member Account and Intermediary Account.
1. Beneficiary Account:-
holder/s of securities in this type of account own those securities 2. Clearing Member Account:- The Clearing Member Account and Intermediary Account are transitory accounts. The securities in these accounts are held for a commercial purpose only. A Clearing Member Account is opened by a broker or a Clearing Member for the purpose of settlement of trades. 3. Intermediary Account:- An Intermediary Account can opened by a SEBI registered intermediary for the purpose of stock lending and borrowing.
DOCUMENTS REQUIRED FOR VERIFICATION:For the purpose of verification, the investors have to submit the following documents, as prescribed by SEBI, along with the stipulated account opening form. A beneficiary account must be opened only after obtaining a proof of identity and address of the applicant. An authorised official of the Karvy would verify the photocopies of any of following documents submitted with their corresponding originals and put his/her signature on them with remarks verified with original before proceeding to open the account. 66
3. 4. 5.
6.
PASSPORT Ration card VOTER ID CARD Passport Driving license VOTER ID CARD PAN card with photograph Driving license Credit cards/Debit cards issued Bank passbook by Banks. Identity card/Document with applicants Photo Identity card/document with
ISSUED address, issued by:Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions, Verified copies oF Electricity bills
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BY:- Central/State Government Central/State Government and its and its Departments, Statutory/Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial Institutions,
7.
(not more than two months old), Telephone bills (not more than two months old) pertaining to only Landline telephones (other than Fixed Wireless Phone)
Colleges affiliated to Universities (this can be treated as valid only till the time the applicant is a student),
Professional Bodies such as ICAI, ICWAI, ICSI, Bar Council etc., to their Members; and
Self-declaration by High Court & Supreme Court judges, giving the new address in respect of their own accounts.
The aforesaid documents are the minimum requirement for opening a Beneficial Owner Account. After verifying the all the documents submitted by the applicant, Karvy would open account in the name of applicant. While they only ask for photocopies of the documents, they will need the originals for verification. The applicant should have to submit a passport size photograph on which he sign across.
the following fees for Demat Account and Trading Account from their clients for the services rendered by the Karvy.
Sl.No. Requirements Demat A/c Trading A/c Explanation 1 Agreement Cost Stamp Paper Cost. 65.00 100.00
422.00
5000.00
Total Payable
487.00
5100.00
1.
Account-Opening Fee:- It is levied when the applicant opens the Demat account
with Depository Participant. Karvy does not charge account opening fee from their clients.
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2.
3.
Custodian fee:- This fee is charged monthly and depends on the number of
securities (international securities identification numbers ISIN) held in the account. It generally ranges between Rs.0.5 to Rs.1 per ISIN per month. Karvy will not charge custody fee for ISIN on which the companies have paid one-time custody charges to the depository.
4.
PLEDGING:Dematerialised shares could be pledged. In fact, this is more advantageous as compared to pledging share certificate. The following procedures are adopted while pledging the dematerialized shares. Both (Pledgor) as well as the lender (Pledgee) must have Demat Account. One must initiate the pledge by submitting the details of the securities to be pledged in a standard format which is available in Karvy. The pledge should confirm the request through Karvy. Once this is done, securities are pledged. All the commercial documentation between the pledgor and pledge are handled outside the depository system. After receiving the repayment, the pledgee would instruct the Karvy for requesting closure of pledge through standard format.
TRADING OF SHARES:-
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Karvy provides the following options to his clients regarding trading of the dematerialized shares. Cash Trading:This is delivery based trading system which is generally done with the intention of taking delivery of shares or money. In Cash trading, the clients can buy or sell only when he satisfies some conditions. If the client places an order to buy 100 shares of Reliance Industries, he has to have 100% of the order value in his available li
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RESEARCH METHODOLOGY;The main objective of a research is to find out the truth which is hidden and which has not been discovered. According to advance learners dictionary of current English the definition of research is:- A careful investigation or enquiry especially through search for new facts in any branch of knowledge
Marketing research:72
Marketing managers often commission formal marketing studies of specific problems and opportunities. They may request a market survey, a product preference test, or an advertising evaluation. Marketing research is the function which links the consumers, customers and public to the marketer though information- used to identified and define marketing opportunities and problems, generate ad evaluate marketing actions :- monitor marketing performance and improve understanding of marketing as a process. Effective marketing research includes five steps, which should be kept in mind to conduct a marketing research in a perfect manner. a. Define the problem and research objective. b. Develop the research plan. c. Collect the information. d. Present the findings.
5. To give awareness among the investors about Demat and to make them to open Demat Account.
Types of research
The customer research was carried out in two phases: a. An exploratory research was carried out to know what customer looks for in financial company and whether customers are satisfied or not with there products
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b. The other was a diagnostic study to identify the factors responsible for satisfactions or dissatisfaction of customer
SOURCES OF DATA :Research is totally based on primary data. Secondary data can be used only for the reference. Research has been done by primary data collection, and primary data has been collected by interacting with various people. The secondary data has been collected through various journals and websites and some special publications of KARVY. For completing the project primary and secondary data used. By way of collecting secondary I used books, journals, news paper and magazine. The main aims of this study are as follows. The data needed data this study has been collected from two main sources :1. Primary sources. 2. Secondary sources. Primary data has been collected through wall structured Tele marketing, campaigning, direct interview method.
Secondary data has helped in collecting information regarding history of the company, division of the company etc. of market position of other financial companies
TOOLS USED
Whatever we design of research study it is necessary to collect relevant data. theus it is useful to consider methods of collecting data and the quality of information produced,
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c. Telemarketing:- To get information I also use this method by calling them through
telephone in their homes, offices, institutions etc. and made them aware from the demate and the financial product.
Objective of research
The main objective of this project is concerned with getting the opinion of people regarding demat services and what they feel about availing the services of financial advisors. I have tried to explore the general opinion about demat services . It also covers why/ why not investors are availing the services of financial advisors. Along with it a brief introduction to Indias largest financial intermediary, KARVY has been given and it is shown that how they operate in mutual fund department.
.To know the opinion of the consumer regarding the demate and financial product. To know what consumer look for while denmating their shares. To know the satisfaction/dissatisfaction level of consumers towards the financial companies. To know the factors responsible for the satisfaction/dissatisfaction of the consumers To know the potential market of the karvy.
SIGNIFICANCE
This area demands maximum benefits at minimum cost. An investor as to decide in this electronic trading environment where he is sake with his share holding and where we can get best service at minimum cost. So my study is about whether the consumer is satisfied with all these services that he is getting from different depository participant in JAIPUR Consumer satisfaction can be defined as more that expected that is one get more what he is expecting. So an investor finds himself satisfy when he get services at there home and in the Due to shortbecause share market is the moist volatile market.
DATA COLLECTION:
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I collect the data through questionnaire, which is fill up by the people of the Jaipur. City. the purpose of data collection is know the satisfaction of customer towards the Demat services in Gwalior .The questionnaire is fill up the 75people. In data collection I asked the some question about the satisfaction of customer toward the demat services.
DATA ANALYSIS
I have analyzed the data in following manner using following satisfaction and dissatisfaction grounds:1. Choosing criteria. 2. Dissatisfaction ground. 3. Rating among companies.
SAMPLING APROACH
There are basically two approaches to sampling:a. Probability Sampling. b. The sampling for the Customers Survey was selected by random sampling. Random number was generated for selecting the sample. A sample size of 50 customers survey. c. Description of the coverage.
Sample size
The sample size of my project is limited to 75 only .
Sample design
Data has been presented with the help of diagrammatic and pie chart etc.
Sampling procedure
The sample is selected in a random way, irrespective of them being investor or not or availing the services or not. It was collected through mails and personal visits to the known persons, by formal and informal talks and through filling up the questionnaire prepared. The data has been analyzed by using the measures of central tendencies like mean, median, mode. The group has been selected and the analysis has been done on the basis statistical tools available.
The research was carried on in the Eastern Region of India. It is restricted to Kolkata where it has got 11 branch offices and 3 franchisees. I have visited people randomly nearby my locality, different shopping malls, small retailers etc. Karvy Demat services offers the investors a secure and convenient way to keep track of their securities and investments, over a period of time, without the hassle of handling physical documents that get mutilated or lost in transit. Karvy Stcok Broking Ltd. is Depository particpant both with -National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL). Karvy Demat services are accessable any of its network over 575 branches / investor service centre located in over 375 cities and towns across the country. There are three types of Demat accounts which can be opened with Karvy. Beneficiary Account Clearing Member Account and Intermediary Account.
Karvy provide facility to online demat services Karvys electronic Custodial Services are:
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Convert your physical holding into electronic holding (which is called "dematerialisation" of securities) Keep custody of your holdings in electronic form. Transfer the shares in the electronic form from one account to another. Facilitate pledge of your electronic securities . Give electronic credit of new share allotments such as public issues, bonus, rights etc. Convert your electronic holding into physical holding (which is called "rematerialisatoin of securities. Buying and selling of shares by karvys Demat account: After you open an account with karvy, you can buy and sell shares in electronic form .in order to sell shares in the demat mode you need to provides your depository with the number of shares sold by you. When you share in the depository mode, you must, similarly provide the depository with the details so that shares purchased will be credited to your account. It is advisable to give a standing instruction at the time of account opening to automatically receive the credit to your demat account. The debit or credit to your account is affected immediately after the se Benefit by selling demats shares:- Brokers have no fear of bad delivery while selling demat shares. Due to this, they offer lower brokerage to you.As bad deliveries are eliminated shares is not returned due to objections, resulting in saving of costs and follow up. Nowadays, practically all trades have to be settled in dematerialised form. Although the market regulator, the Securities and Exchange Board of India (SEBI), has allowed trades of upto 500 shares to be settled in physical form, nobody wants physical shares any more. So a demat account is a must for trading and investing. The demat account reduces brokerage charges, makes pledging / hypothecation of shares easier, enables quick ownership of securities on settlement resulting in increased liquidity, avoids confusion in the ownership title of securities, and provides easy receipt of public issue allotments. It also helps you avoid bad deliveries caused by signature mismatch, postal delays and loss of certificates in transit. Further, it eliminates risks associated with forgery, counterfeiting and loss due to fire, theft or mutilation. Demat account holders can also avoid stamp duty (as
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against 0.5 per cent payable on physical shares), avoid filling up of transfer deeds, and obtain quick receipt of such benefits as stock splits and bonuses.
First, an investor who wants to open a Demat Account to dematerialise their holdings has to approach a Karvy and fill up an account opening form. The account opening form must be supported by copies of any one of the approved documents to serve as proof of identity (POI) and proof of address (POA) as specified by SEBI. Besides, production of PAN card in original at the time of opening of account has been made mandatory. All applicants should carry original documents for verification. Further, the investor has to sign an agreement with Karvy in a depository prescribed standard format, which details rights and duties of investor and DP (Karvy). Karvy provides the investor with a copy of the agreement and schedule of charges for their future reference. After verification of the entire certificate, Karvy opens the account in the system and gives an account number, which is also called BOID (Beneficiary Owner Identification number). SEBI has rationalised the cost structure for processing of Demat account account opening charges, transaction charges for credit of securities, and custody charges. The Karvy may revise the charges by giving 30 days notice in advance.
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83
84
Yes No
40%
60%
According to this pie-chart we can say that 40% people know about the demat account and 60% people do not know about the demat account . But they want know about the demat account of KARVY stock broking limited.
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Q. 2
What brokerage do you charge from the clients? a) 1P:10P c) 3P:30P b) 2P:20P d) Other
In the study, it was seen that maximum competition was in the brokerage rates only. Now the clients work with those companies who charges less brokerage.60% of the
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franchisees were charging brokerage as low as 1P:10P.Also 20% were charging brokerage of 2P:20P.Only 12% of them were taking brokerage of 3P:30P. Rest 8% were those who were working on fixed brokerage as Rs 800 per crores.
Q. 3
Where do you get support level from? a) Head Office b) Both b)Branch Office
18
44
38
It was found that 18% of the support level to the franchisees was given by Head Office whereas 44% were served by Branch Office. Rest 38% were served by both head office and branch office. Those who were served by both of them complained that the problems were not solved immediately.30% of franchisees claimed that their problems were not 87
solved immediately and it took little time as their was a chain from Branch office to head office.
Q. 4
with
After knowing services provided by Karvy, would you like to be associated it? a) Yes c) Will tell later b) No
17
18
65
88
Q.5
What do you think Demat account is safe? Yes No Cant say 40% 20% 40%
40
40
20
89
In this pie-chart we found that 40% people said we think demat a/c is safe and 20% said not safe and remaining 40% said that we cant say demat a/c of karvy is safe or not.
Q.6 Why you choose Karvy Demat service? A Good will B Safety
25% 25%
C Service D Charges
20% 30%
90
25 30
20 25
Q.7
What type of Karvy Demat service? a. Highly satisfy b. Satisfy c. Dissatisfy 60% 30% 10%
91
10%
30% 60%
4. Number 1 Registrar and Transfer agent in India. 5. Number 1 dealer of Investment Products in India. 6. Brand Name 7. All financial needs under one roof.
Weaknesses:
High Employee Turnover. Low Advertisement
Opportunity:
1. Marketing at rural and semi-urban areas. 2. More aware people intending to invest in markets with right companies 3. Potential Market for investors 4. Tapping those people who are not satisfied with their existing business.
Threats:
1. Increasing number of local players. 2. Past image of Mutual Fund. 3. Decreasing brokerage rates.
CONCLUSION
Concerning my project title CONSUMER SATISFACTISFACTION REGARDING DEMAT SERVICES IN JAIPUR the survey conducted by me as I found that the consumer satisfactions the only way for the success of any organization in the present time. And I came to the following conclusion which is as follows
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1. Response was very good from the customer regarding financial product because in this time every one wants more return on less investment and in case of demat they want true time to open the demat ( like at the time of issues ). 2. 3. 4. 5. Karvy gaining good response in the demat field by providing good services. I concluded by this that research that services and returns got more importance than goodwill. In the last six month it has opened the maximum number of Demat account at the time of new public issues than any other companies. I also conclude that many financial services at one place is the another reason of its popularity .
1. The company should come up with some good strategies to create awareness among people regarding the financially Demat. 2. The company as soon as possible should try to convert itself into a bank so that many people come in contract and joint with company. 3. They should try to provide some extra services to their customers. 4. The company should concentrate more on after sales services.
APPENDIX
Q. 2
What do you think Demat account is safe? a. Yes b. No c. Cant say 40% 20% 40%
Q. 4
What type of Karvy Demat service? a. Highly satisfy b. Satisfy c. Dissatisfy 60% 30% 10%
Q. 5
with it?
18% 17%
b) No
65%
Q.6
Where do you get support level from? a) Head Office c) Both 18% 44%
96
b) Branch Office
38%
Q. 7
services?
Would you like to know more about Karvy, especially, Karvy Demat
a) Yes b) No
95% 5%
Q. 8
Are they able to solve your problems on immediate basis? a) Yes b) No 70% 30%
Q. 9
Do you think client database would help you to grow business? a) Yes c) Doesnt matter 40% 35% b) No 25%
Bibliography
1. Sharma D.D. Marketing Research, 3rd Edition, Publication Sultan Chand & Son Publication. 97
2. Kothari C.R. Research Mythology, 3rd Edition, New age Publication. 3. Kotler Philip Marketing Management, millennium Edition, Prentice Hall inc. Publication. 4. Kanuk & Shiftmen, Consumer Behaviour, 4th Edition, Tata Mc Graw Hill Publcation.
Websites
www.the-finapolis.com www.karvy.com www.valueresearchonline.com www.moneycontrol.com www.morningstar.com www.yahoofinance.com www.theeconomictimes.com www.rediffmoney.com www.bseindia.com www.nseindia.com www.investopedia.com
Jitendra
98
Virahyas
JVIRAHYAS@GMAIL.COM
99