Karvyprojectreport 100722032417-phpapp02

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Karvyprojectreport 100722032417-phpapp02

  1. 1. SUBMITTED TO: - SUBMITTED BY: -JIWAJI UNIVERSITY BHOOPENDRA PATHAKGWALIOR (MP.) M.B.A. (III SEM)
  2. 2. DECLARATION I Bhoopendra pathak declare that the Project Report entitled “DMAT SERVICE IN KCL “withspecial reference to “ Karvy Consultant LTD”. And its competitive funds are submitted by me in thepartial fulfillment of Master of Business of Administration from Maharana Pratap College of TechnologyGwalior. I further declare that all the information, facts & figures furnished in this project Report are basedon my intensive research findings. Bhoopendra Pathak M.B.A.III sem. M.P.C.T. Gwalior
  3. 3. ACKNOWLEDGEMENT I take this opportunity to express my gratitude to Mr. NITIN TEMAK (Brach Manager) forassigning this important project to me. I am very grateful to Mr.Avnish sir, Mr. Jitu sir, Mr. Sandeep sir, and I am also thankful toMr. Kanik karkhur sir and staff member of KCL for their valuable suggestions in the execution ofproject work. Finally, I would like to express my sincere Thanks to Mr. N.C. JAIN (H.O.D. of MPCT M.B.A. Dept.)who gave me a proper guidance & support to complete my project. I would like to thanks to Mr. Umesh Sharma Sir, Mr. Sourab Goyal Sir, Trilok sir, and I amalso thankful to Miss Gunjan Tiwari Madam and all faculty of M.B.A. Dept for his guidance givenduring the project. Lastly, I am grateful to all the respondents who helped me by providing the information & givingtheir valuable time. Bhoopendra Pathak M.B.A.III sem M.P.C.T. Gwalior
  4. 4. PREFACE Education becomes more meaningful when its theoretical aspects arecombined with the practical experiences .This provides an opportunity to the studentto improve there understanding of the studies. Master of business administration of finance is course which combines withtheory and its application as its contents of study in the field of management as apart of this course every aspirant has to go undergo AT LEAST FIVE WEEKS“Summer Training” in organization of repute the purpose of this training is toexpose the student of management to real business situation and to provide insightin to the various functions carried out with in the organization. I am fortunate enough to gat the opportunity of my “Summer Training” inthe “KARVY CONSULTANTS LTD.”.
  5. 5. CONTENTAbout Karvy consultants ltd. Company profile. Organization Karvy group. Quality policy of the karvy. Strategy of the company. Developments activities. Achievements. Karvy security ltd.Demat account overviewDemat services of karvy.Research Methodology. Types of Research Sources of data. Tools used. Objectives of the project. Significance of project. Limitation of the project. Data collection. Customer satisfactionFindingsConclusionRecommendation.Bibliography
  6. 6. COMPANY PROFILE The four chartered accountants founded Karvy Consultants Limited in 1982. Agroup of Hyderabad based practicing Chartered Accountants started Karvy taxationservices initially. Later, it forayed in to the register and share transfer activities andsubsequently into financial services. All along Karvy’s strong work ethics andprofessional background leveraged with information technology enabled it to deliverquality to the individual. A decade of commitments, professional integrity and vision helped Karvyachieve a leadership position in its field when it handled the largest number of issueever handled in the history of the Indian Stock market in a year. Therefore, Karvymade in roads into a host of capital market services corporate and retail, whichproved to be a sound business synergy. Today Karvy has access to million ofshareholder, beside companies, banks, financial institution and regulatory agencies.Over the past one and half decade, Karvy has involved as a veritable link betweenindustries, finance and people. In January 1998, Karvy became the first Depositoryparticipants in Andhra Pradesh. As ISO: 9002 Company, Karvy ranks among the top player in almost all the fields it operates. KarvyComputershare Limited is India’s largest Registrar and Transfer Agent with a clientbase of nearly 500 blue chip corporate, managing over 2 crore accounts. Karvy StockBrokers Limited, member of National Stock Exchange of India and the Bombay StockExchange, ranks among the top 5 stock brokers in India. With over 6, 00,000 activeaccounts, it ranks among the top 5 Depositary Participant in India, registered withNSDL and CDSL. Karvy Comtrade, Member of NCDEX and MCX ranks among the top3 commodity brokers in the country. Karvy Insurance Brokers is registered as aBroker with IRDA and ranks among the top 5 insurance agent in the country.Registered with AMFI as a corporate Agent, Karvy is also among the top Mutual Fundmobilize with over Rs. 5,000 crores under management. Karvy Realty Services, whichstarted in 2006, has quickly established itself as a broker who adds value, in therealty sector. Karvy Global offers niche off shoring services to clients in the US. Karvyhas 575 offices over 375 locations across India and overseas at Dubai and New York.Over 9,000 highly qualified people staff Karvy.
  7. 7. ORGANISATION Karvy was started by a group of five chartered accountants in 1979. Thepartners decided to offer, other than the audit services, value added services likecorporate advisory services to their clients. The first firm in the group, KarvyConsultants Limited was incorporated on 23rd July, 1983. In a very short period, itbecame the largest Registrar and Transfer Agent in India. This business was spun offto form a separate joint venture with Computer share of Australia, in 2005. Karvy’sforay into stock broking began with marketing IPO’s, in 1993. Within a few years,Karvy began topping the IPO procurement league tables and it has consistentlymaintained its position among the top 5. Karvy was among the first few members ofNational Stock Exchange, in 1994 and became a member of The Stock Exchange,Mumbai in 2001. Dematerialization of shares gathered pace in mid-90s and Karvywas in the forefront educating investors on the advantages of dematerializing theirshares. Today Karvy is among the top 5 Depositary Participant in India. While the registry business is a 50:50 Joint Venture with Computer share ofAustralia, we have equity participation by ICICI Ventures Limited and Barings AsiaLimited, in Karvy Stock Broking Limited. Karvy has always believed in adding value toservices it offers to clients. A top-notch research team based in Mumbai andHyderabad supports its employees to advise clients on their investment needs. Withthe information overload today, Karvy’s team of analysts help investors make theright calls, be it equities, mf, insurance. On a typical working day Karvy: * Has more than 25,000 investors visiting our 575 offices * Publishes / broadcasts at least 50 buy / sell calls * Attends to 10,000+ telephone calls * Mails 25,000 envelopes, containing Annual Reports, Dividend cheques/ advises, allotment / refund advises * Executes 150,000+ trades on NSE / BSE * Executes 50,000 debit / credit in the depositary accounts * Advises 3,000+ clients on the investments in mutual funds First ISO - 9001: 2000 Certified Registrar in India
  8. 8. KARVY GROUPKarvy group comprises the following:- KARVY CONSULTANTS LIMITED – As the flagship company of the Karvy Group, Karvy Consultant Limited hasalways remained at the helm of organization affairs, pioneering business policies,works ethic and channels of progress. Karvy as a leader in the registry business nowtransferred this business into a join venture with Computer share Limited ofAustralia, the world’s largest registrar. Today, we service over 6 lacks customeraccounts in this business spread across over 250 cities/towns in India and are rankedamongst the largest Depository Participant in the country, Deal in Register andinvestment services. We are rated as Indias "Most Admired Registrar" for overallexcellence in volume management, quality processes and technology driven services.Our services include Initial Public Offers (IPO’s) processing, share holder servicing,effecting corporate actions, investor information services and host of technologyenabled services to facilitate efficient and effective service delivery. KARVY STOCK BROKING LIMITED – They offer trading on a vast platform – National Stock Exchange, Bombay StockExchange and Hyderabad Stock Exchange. Information is given as a constantfeedback to our customers, through daily reports delivered thrice Daily- The Pre-session Report, where market scenario for the day is predicated, the Mid- sessionReport, times to arrive during lunch break, where the market forecast for the rest ofthe day is given and the Post- session Report, the final report for the day, where themarket and the report itself is reviewed. To add to this repository of information, wepublish a monthly magazine “Karvy------ The Finapolis” Which analyzes the lateststock market trends and takes a close look at the various investment options, andproduct available in the market while a weekly report, called “Karvy Bazaar Baatein”
  9. 9. keeps you more informed on the immediate trends in the stock market. In addition,our specific industry reports give comprehensive information on various industries.Beside this, we also offer special portfolio analysis packages that provide dailytechnical advice on scrip’s for successful portfolio management and providecustomized advisory services to help you make the right financial moves that arespecifically suited to your portfolio. The institutional broking arm of KARVY Stock Broking offers corporate housesand institutions dealing capabilities on India leading stock exchanges (NSE and BSE)in the cash and derivatives segments. This unit has devised a process drivenapproach to address the needs of institutional investors who have unique andspecialized investment needs. The institutional broking services desk is a specialized business unit at KARVYthat operates out of Mumbai, the financial capital of India and is staffed with best-of-industry equity market professionals and highly skilled dealers. KARVY also supportsinstitutional traders through their institutional sales and research teams withinformation and insightful reports on stocks, sectors and industry verticals. KARVY’sinstitutional broking clientele include some major domestic Mutual Funds, InsuranceCompanies, Banks and FII’s in India. KARVY INVESTORY SERVICES LIMITED – Karvy Investor Services Limited, a SEBI registered Merchant Banker is a 100%subsidiary of Karvy Consultants Limited and is among the top 10 merchant Bankersin India today. The parent Company i.e. Karvy Consultants Limited was founded by agroup of professionals in 1982 and today it has evolved as integrated financialservices company of repute, offering various financial services to suit everyrequirement/need of our customers. By virtue of its access to millions of IndianShareholders, in addition to companies, banks and financial institutions, Karvy has inthe process built up a positive reputation with regulatory authorities and othergovernment agencies. Our emphasis on the quality of the services, we offer, hasbeen instrumental in helping us to attain the leadership in the financial servicessector. We have a track record of handling 70 public/rights issues as MerchantBankers. During the last two years we have handled the share buyback issues of TTKLIG Limited, Sirpur Paper Mills Limited, Bhagyanagar Metals Limited, A V ThomasGroup-Nelliampathy Tea and Produce Company Limited, Chordia Food Products
  10. 10. Limited, Heritage Foods (India) Limited, Titanor Components Ltd, PunjabCommunications Limited, etc. to name a few. We have also handled/are handling the Rights/Public issues of DhanalakshmiBank, Dhandapani Finance, Moschip, Karur Vysya Bank, Lux Hosiery Industries Ltd,Sah Petroleums Limited, Paradyne InfoTech Limited, Yash Papers Limited, SPLIndustries Limited, Provogue (I) Limited, Tulip IT Services Limited, Gati Limited aslead managers to name a few. We have also been appointed as advisor to some ofthe GOI disinvestments. We have actively marketed bond issues of corporations fromthe States of Maharashtra, Karnataka & Gujarat and debt issues of all the FinancialInstitutions like IDBI, ICICI, IFCI, REC, PFC, SIDBI, etc. 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 COMMODITIES BROKING PRIVATE LIMITED- Focused on taking commodities trading to new dimensions of reliability andprofitability. We have made commodities trading, an essentially age-old practice, intoa sophisticated and scientific investment option. Here we enable trade in all goods and products of agricultural and mineralorigin that include lucrative commodities like gold and silver and popular items likeoil, pulses and cotton through a well-systematized trading platform. Ourtechnological and infrastructural strengths and especially our street-smart skills makeus an ideal broker. Our service matrix is holistic with a gamut of advantages, the first and foremostbeing our legacy of human resources, technology and infrastructure that comes frombeing part of the Karvy Group. Our wide national network, spanning the length and breadth of India, furthersupports these advantages. Regular trading workshops and seminars are conductedto hone trading strategies to perfection. Every move made is a calculated one, basedon reliable research that is converted into valuable information through daily, weeklyand monthly newsletters, calls and intraday alerts. Further, personalized service isprovided here by a dedicated team committed to giving hassle-free service while the
  11. 11. brokerage rates offered are extremely competitive. Our commitment to excel in thissector stems from the immense importance those commodities broking has to across-section of investors, farmers, exporters, importers, manufacturers and theGovernment of India itself. Visit us at www.karvycomtrade.com KARVY MUTUAL FUND SERVICES Investment is the stepping stone to achieving ones financial dreams. Mutualfunds offer an opportune way to long-term wealth creation. However, with more andmore funds flooding the market, the task of selecting the most suitable scheme getseven more complicated. Mutual Fund Advisory Service at Karvy guides you throughthis maze and ensures that your investments are backed by our quality research.We, at Karvy help you to reach your goals by offering: * Products of 33 AMCs * Research reports (existing funds & NFOs; strategy reports etc.) * Customized mutual fund portfolios * Portfolio revision (depending on changing market outlook and evolvingtrends) * Access to online consolidated portfolio statement IPO INTRODUCTION PVT LTD An Initial Public Offer (IPO) is a means of collecting money from the public by acompany for the first time in the market to fund its projects. In return, the companygives the share to the investors in the company. In an IPO, the Lead managers decide the price of the issue. In a book buildingoffer, the syndicate members decide the indicative price range and the investorsdecide the price of the issue through a tender method. A draft prospectus provides the information on the financials of the company,promoters, background, tentative issue price etc. It is filed by the Lead Managerswith the Securities & Exchange Board of India (SEBI) to provide issue details.Overview of the draft prospectus can be seen on www.sebi.gov.in (SEBIs web site
  12. 12. click here). The final prospectus is printed after obtaining the clearance from SEBIand the Registrar of Companies (ROC). KARVY FIXED INCOME SECURITYIES & TRADING (K-FIST) It was started in December 2002 with a roll out from 7 dedicated centers ofKarvy. The Retail Debt Market division which is centralized at the HO in Hyderabadprovides fixed income products to its clients and is primarily a fund based activity.The deal sizes vary from Rs.10,000 to Rs.5 cores. Products - Central Government securities, State Development Loans, StateGuaranteed bonds, Public Sector Undertaking Bonds, Financial Institution Bonds, andBank bonds of SLR/Non-SLR category, both taxable and tax-free. Target clients - Provident Fund Trusts, Educational & Religious trusts, charitabletrusts, and Co-operative banks, Regional Rural Banks, Corporate, and High Net worthIndividuals Standard Operating Procedures - Based on the specific needs of theprospects Quotes of all categories of bonds are sent. The selection of instrument isdone and post negotiation (if any) the settlement date is finalized. Contract notes areexchanged and written confirmations are obtained before initiating the tradesettlement. On the agreed settlement date, the funds and securities are exchangedbetween the parties. Primarily all the trades are in the electronic mode only. TheWholesale Debt Market division is centralized at Mumbai and is a voice based ordermatching activity which is fee based. The deal size is a minimum of Rs.5 cr. And thereporting is done on the NSE. Products - Central Government securities, State Development Loans, StateGuaranteed bonds, Public Sector Undertaking Bonds, Financial Institution Bonds, andBank bonds of SLR/Non-SLR category, both taxable and tax-free. Target clients - Co-operative banks, commercial banks, Corporate, FinancialInstitutions, Insurance companies and Asset Management Companies. Standard Operating Procedures - The dealers generate 2-way quotes during thetrading hours and match the institutional buyers and sellers. The deal contract notesare generated and exchanged between the 2 parties. The fees are collected byraising debit notes on a monthly basis.
  13. 13. KARVY REALITY (INDIA) LIMITED – (KRIL) is promoted by the KARVY Group, India’s largest integrated financialservices group. The group carries forward its legacy of trust and excellence ininvestor and customer services delivered with a passion for services and the highestlevel of quality that align with global standards. KRIL is engaged in the business ofreal estate and property services. * 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. KRIL is your personal real estate advisor guiding and hand holding you throughreal estate transactions and offering valuable investment opportunities. Building on the KARVY brand as a leading industry benchmark for world classcustomer servicing and quality standards, KRIL brings to investors a reputation ofreliability, dependability and honesty. Our understanding of the needs andpreferences of our clients and our teams of qualified realty professionals help us toestablish fruitful relationships with buyers and sellers of properties alike. A single stop shop for realty services offering: * Transacting Options: Choose to buy, sell or rent properties (residential andcommercial) * Investing Options: Give your investments a good opportunity with propertiesmarketed by KRIL. * Financing Options: Get unmatched deals for financing your investment * Research Options: We undertake valuation and feasibility studies, areaanalysis and customized analysis on behalf of clients. KRIL has ongoing relations with builders and developers across the countrywhich will help you place your investments in the most genuine properties for a goodvalue appreciation at the right place and at the right price. KRIL is committed to theguiding principles of quality, timely service delivery, fair pricing, transparency andintegrity. KARVY INSURANCE BROKING PRIVATE LIMITED –
  14. 14. At Karvy Insurance Broking (P) Ltd. we provide both life and non-life insuranceproducts to retail individuals, high net-worth clients and corporate. With the openingup of the insurance sector and with a large number of private players in thebusiness, we are in a position to provide tailor made policies for different segmentsof customers. In our journey to emerge as a personal finance advisor, we will bebetter positioned to leverage our relationships with the product providers and placethe requirements of our customers appropriately with the product providers. WithIndian markets seeing a sea change, both in terms of investment pattern andattitude of investors, insurance is no more seen as only a tax saving product but alsoas an investment product. By setting up a separate entity, we would be positioned toprovide the best of the products available in this business to our customers. Our wide national network, spanning the length and breadth of India, furthersupports these advantages. Further, personalized service is provided here by adedicated team committed in giving hassle-free service to the clients. KARVY PORTFOLIO MANAGEMENT SERVICE LIMITED – KARVY is a premier integrated financial services provider, and ranked amongthe top five in the country in all its business segments. KARVY owes its success to itsprofessionally managed team of experts, who have been chosen from some of themost reputed institutions and firms across India. In todays intricate and volatile market your investment requires constantmonitoring and attention. The demand made on your time and energy by otherbusiness may not leave you with capacity to attend to your personal portfolio withthe degree of care you deem appropriate. We at KARVY understand your situationand offer PMS services taking the same level of care and attention you would devoteto monitoring your portfolio. Green Wallet is an Endeavour specially designed by Karvy to enhance thewealth of a niche segment of investors. This service primarily meant for HNIs (HighNet worth Individuals) offers customers a wide range of schemes. These uniqueschemes seek to achieve higher returns through broad based participation in equitymarkets. This is achieved by creating a diversified equity portfolio of small, mediumand large capitalized companies.
  15. 15. KARVY DEPOSITORY SERVICES LIMITED – Stock Broking Limited provides depository services to investors as a DepositoryParticipant with the National Securities Depository Limited (NSDL) and CentralDepository Services (India) Limited (CDSL). The Depository system in India linksIssuers, National level Depositories, Depository Participants and Clearing Houses /Clearing Corporation of Stock Exchanges. Our demat services are accessible throughany of our network of over 575 branches / investor service centers located in over375 cities and towns across the country. Our demat services business has the distinction of having all its operations ISO9001: 2000 certified with state-of-the-art technology and operations capabilities. Ourdemat services has innovated over time and we provide online access to accountstatements and transaction alerts through SMS to its clients. KARVY’s Demat services offer you a secure, convenient and paperless way tokeep track of your investments in shares and other security instruments over time,without the hassle of handling paper based transcripts. We provide the following services: * Dematerialization of Shares * Dematerialization of Shares * Transfer of Shares * Pledging of Shares * Electronic Custodial Services * Maintenance of Beneficial Holdings * Electronic Credit against Corporate Actions
  16. 16. QUALITY POLICY OF THE COMPANY:- To achieve and retain leadership, Karvy shall aim for complete customer satisfaction, by combining its human and technological resources, to provide superior quality financial service, in the process, Karvy will strive to exceed customer’s expectation. Quality Objectives:- As per the quality policy, Karvy we’ll: Build-in-house processes that will insure transparent and harmonious relationship with its clients and investor to provide high quality of services. Establish a partner relationship with its investors service agent and vendors that will help in keeping up it commitments to the customers. Provide high quality of work life for all its employees and equip them with adequate knowledge and skills so as to respond to customer’s needs. Continue to uphold the values of honesty and integrity and strive to establish unparalleled standard and 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 source of value-edit products and services and constantly guide the individuals and institutions in making judicious choices of same. Strive to keep all stakeholders (share holders, clients, investors, employees, suppliers and regulatory authorities) proud and satisfy.
  17. 17. STRATEGY OF THE COMPANY:- Karvy believes that the foremost ingredient for success in the has been the co- operation ability to continuously evolve both organizational structure and product offerings, thereby remaining on the cutting financial services. Karvy believes that three capitals viz., financial, human and technology, would drive the financials services sector in the future and draw the boundaries for achieving leadership. Karvy believes that customized solutions are now the key drivers for market share and profit margins. DEVELOPMENT ACTIVITIES:- Karvy has sought to broaden the scope of its activities by examining all sectors of the economy and by introduction new concepts, new instruments and in some cases new institution to response to perceived needs. In this regards, karvy developmental activities have encompassed such diverse areas as financial investment, insurance, depository participant’s services, skill development activities etc. It has also been a pioneer in setting up PAN. TAN services, and also setting up specialized institution in certain key sections.1. TIN facilitation centre.2. Stock broking centre.3. Financial centre.4. Banking centre.5. Registrar of the issues. A separate department is present with the sole intent of providing financial services to various charitable, educational and social welfare organizations.
  18. 18. ACHIEVEMENTS:- Largest mobilize of funds as per PRIME DATABASE. First ISO- 9002 certified Registrar in India. A category- 1- Merchant banker. A category- 1- Registrar to public issues. Ranked as “the most admired Registrar” by MARG Handled the largest –ever public issue-IDBI. Handled over 500 public issues as Registrars. Handling the reliance account, this accounts for nearly 10 million account holders. First depository participants in Andhra Pradesh. Major issues managed as arrangers:o Kerala state Electricity Board.o Power Finance Corporation.o A.P. water resources development corporationo A.P. state electricity board.o Haldia petrochemicals Ltd. Major issues managed as co-managers.o Indus land Bank Ltd.o ICICI Bonds-March97.o ICICI Bonds-dec.97.o ICICI safety Bonds-April 98, July98, Oct.98, Dec.98, Jan.99.o The Jammu & Kashmir BankLtd. Major issues handled and registrar to issues.o IDBI equityo Morgan Stanley mutual fundo Bank of Barodao Bank of Punjab Ltd.o Corporation Bank.o Indus land Bank Ltd.o Jammu & Kashmir Bank Ltd.o Housing and Urban development corporation (HODCO) Ltd.o Madras Refineries Ltd.o BPL Ltd.o Birla 3M Ltd.
  19. 19. o Essar shipping Ltd.o Essar stels Ltd.o Hindustan Petroleum Corporation Ltd.o Infosys technologies Ltd.o Jindal Vijay Nagar Steels Ltd.o Nagarjun fertilizers and chemicals Ltd.o Rajshree Polyfil LTD. KARVY SECURITIES LTD Karvy has secured over Rs. 500 crore in the following debt issues Andhra Pradesh Road Development Corporation Ltd. ICICI Bonds ( Private placement ) ICICI Bonds-96. ICICI Bonds- 97-I ICICI Bonds-97-II. ICICI Safety Bond-March 98. ICICI Bond 96. IDBI Flexi Bond-I IDBI Flexi Bond –II IDBI Flexi Bonds –III Kerala state electricity Board. Krishna Bhgya Jala Nigam Ltd. Power Finance Corporation Ltd. Andhra Pradesh Water Resources Development Corporation Andhra Pradesh state Electricity Board.
  20. 20. OVERVIEW OF DEMAT ACCOUNT
  21. 21. DEMAT ACCOUNT:- Demat account is very much similar to saving current account of a bank, with the only difference being that it deals with securities in electronics form and not money .’’A demat account is just polite farewell to paperwork and a warm welcome to greater efficiency and for that matter, security. A Dmat account a unique, capital- market-investor-oriented Benefits of the Demat account:- No loss of share certificates. No delay in transfer of shares. No possibility of forgery on various document dealing to bad deliveries, legal disputes. No possibility of theft of share certificates. No prevalence of fake certificates in the markets No mutilation or loss of share certificates in transit. You can also receive your bonuses and rights into your depository account as a direct credit, thus eliminating risk of loss in transit. You can also expect a lower interest charge for loan taken against demat shares as compared to interest for loan against physical shares .this could result in a saving of about 0.25% to 1.5% some banks have already announced this . RBI has increased the limit of loans against dematerialized securities as collateral to rs.2 mn per borers as against Rs.1 mn per borers in case of loans against physical securities. RBI has also reduce the minimum margin to 25% for loans dematerialized securities as against 50% for loans against physical securities
  22. 22. DEMAT SERVICES OF KARVY
  23. 23. DEMATERIALISATION Dematerialisation is a process in which you can convert physical sharecertificates 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 thedematerialized form. This is as per the Depositories Act, 1996.However, when youbuy shares you may receive delivery in the demat form as per the option of theseller. REMETRIALISATION: It is the process by which a client can get his electronic holdings convertedinto physical certificates. The client has to submit the rematerialisation request to theDP with whom he has an account. The DP enters the request in its system whichblocks the client’s holdings to that extent automatically. The Issuer / R& T agentthen prints the certificates, dispatches the same to the client and simultaneouslyelectronically confirms the acceptance of the request to NSDL. Thereafter, the client’sblocked balances are debited. PLEDGE:To deposit personal property as security for a personal loan of money. If the loan isnot repaid when due, the personal property pledged shall be forfeit to the lender. Aclient (pledged) having a beneficiary account with a Depository Participant canpledge securities in electronic form against loan / credit facilities extended by apledge, which too has a beneficiary account with a Depository Participant.
  24. 24. HOW TO OPEN KARVY DEMAT ACCOUNTStep 1. Account opening forms are available at all karvy centers fill up the accountopening form and submit the same with some formalities. If your shares are held injoint names, the account should be opened in the same order of names.Step 2. An account number will be allotted to you which have to be quoted in allyour future demat related correspondence with Karvy.Step 3. Submit a dematerialization request form (DRF) for the conversion of theshares certificates into electronic form.Step 4. After the necessary verification has been done by the registrar/ company, anappropriate entry is made into your demat account. FORMALITIES THAT ARE REQUIRED TO BE COMPLETED TO OPEN A ACCOUNT:- To open a Depository Account, you have to submit the duly filled inAccount Opening form along with the following documents:Residential Proof - Copy of Ration Card, Passport, Driving License, Telephone Bill,Electricity Bill or Rental AgreementPhoto Identity Proof - Copy of Driving License, Passport or Ration CardWhy to open a demat account with karvy? Karvy is India’s premier financial institution. It was setup in1982 and todayhas and first depository participants ,no.1 registrar and ISO 9002 company in India.And also has many achievement with over 10 lakh investors having entrusted tokeep stock there. Moreover, you have the convenience of operating you demataccount from any of the karvy centers spreading across 46 cities in IndiaOnline Demat service in karvy: - Karvy provide facility to online demat services
  25. 25. Karvy’s electronic Custodial Services are: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, rightsetc.Convert your electronic holding into physical holding (which is called"rematerialisatoin of securities.Buying and selling of shares by karvy’s Demat account: After you open an account with karvy, you can buy and sell shares inelectronic form .in order to sell shares in the demat mode you need to provides yourdepository with the number of shares sold by you. When you share in the depository mode, you must, similarly provide thedepository 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 toautomatically 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, theyoffer lower brokerage to you.As bad deliveries are eliminated shares is not returneddue to objections, resulting in saving of costs and follow up.Why should I buy shares in the demat form”:-
  26. 26. The single biggest reason over buying shares in the physical form is that demat shares credited to your account within 2 to 3 days after the end of the settlement. This is unlike the average 30 to 40 days taken in receiving back physical shares from the R&T Agent and sometimes with objections.Further; possibility of loss or theft of the certificates is eliminated. This is in addition to the 0.50% stamp duty savings, which works out to Rs.50 for transfer of shares worth of Rs.1ttlement... By demat account you can get following facilities:- Transaction statement: you can view transaction in your account for a period of 15 days. Various options are available in transaction statement when you want. Status of request: you can also get status of your transactions by status or Requests. Personal details: provides your various client related information like client name, client address, joint holders name, account type, bank account details for a give client id. Customer ledger: all your financial transactions pertaining to your demat account like Bills, Payments, waivers etc. are available in customer ledger. How will I know that karvy has updated my account after each transaction? Karvy will provide you a statement account periodically. DRF In order to get your shares converted from the physical to the electronic form, you have to submit your certificates alongwith a request form asking for the conversion. This request form is called a DRF or a Demat Request Form.
  27. 27. DEPOSITORY SERVICE CHARGES FOR RESIDENTS RETAIL CUSTOMERS AND CORPORATE:S no. Charge Head Standard Frequent/ Charges Sub-brokers1. A/c opening. Rs. 100 Rs.1002. Annual service charge. Rs.300 RS.12503. Custody Fee( an A/c with ISINs will Rs.2.25 per ISINs RS.2.25 per be assume to have one ISIN) per quarter ISIN per quarter4. Agreement stamp paper As per respective As per state Act respective state Act5. 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 instruction6. Rejection / fails. Rs. 20 Rs 107. 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 Rs. 359. Extra for each certificate. Rs. 2 Rs.210. Dematerialization. Rs.20 Rs.2011. Closure of account. Nil Nil12. 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 Rs.20
  28. 28. 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. 1/-per ISINs in the account on the last Saturday of each month) The value of shares and charges and calculated as per NSDL formula and rates. There will be a 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/- resumption of services in such cases. Any service, which is not mentioned 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.
  29. 29. 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 learner’s 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”1. Marketing research:- 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. 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
  30. 30. b. the other was a diagnostic study to identify the factors responsible for satisfactions or dissatisfaction of customer . SOURCES OF DATA 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,a. Questionnaires:- It is the basic methods of collecting data in marketing research . Questionnaires are the basis method of collecting data in marketing research. Questionnaires are distinguished by the facts that asking question to people who have the desired information collects data. When questioning researches collects data ask questions. They keep track of the objects or actions in which they are interested. Sometimes individual makes the observation on the other occasions mechanical devices note and record the desired information. In this study the data was collected by means of questioning since the method of observation is also used for checking the awareness regarding the financial products. The questionnaires were filled by using tested personal interviews.
  31. 31. b. Contact methods:- to get information contacts is necessary it can be either by telephone or by personal contacts. I prefer personal interview method to get the necessary information from the people. The data was collected through personal interview by asking the questions.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.
  32. 32. OBJECTIVES OF THE PROJECT1. To know the opinion of the consumer regarding the demate and financial product.2. To know what consumer look for while denmating their shares.3. To know the satisfaction/dissatisfaction level of consumers towards the financial companies.4. To know the factors responsible for the satisfaction/dissatisfaction of the consumers5. 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 Morena and Gwalior 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 because share market is the moist volatile market. LIMITATION Due to short time I was not able cover all area. Not financially support given by the company. Due to lack of awareness and interest on the part of respondents created problem in the collection.
  33. 33. DATA COLLECTION: I collect the data through questionnaire, which is fill up by the people of the Morena and Gwl. 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. 4. No of a/c opened in Morena. SAMPLING APROACH There are basically two approaches to sampling:-a. Probability Sampling.b. The sampling for the Customer’s Survey was selected by random sampling. Random number was generated for selecting the sample. A sample size of 50 customer’s survey.c. Description of the coverage.
  34. 34. I have covered the local area of Morena.
  35. 35. CUSTOMER SATISFACTION1. Name2. Gender3. Occupation4. Age Yes No 60% 40% 70% 60% 60% 50% 40% 40% Series1 30% 20% 10% 0% Yes No B) Do you know about the demat account ? Yes No 40% 60%
  36. 36. 70% 60% 60% 50% 40% 40% Series1 30% 20% 10% 0% yes No(C) Why do You invest in share market? Profile For general Other(tax investment saving) 90% 10% --- 100% 90% 90% 80% 70% 60% 50% Series1 40% 30% 20% 10% 10% 0 0% Profile For Other (Tax General Savings) Investment D) What do you think Demat account is safe? Yes No Can’t say 40% 20% 40%
  37. 37. 45% 40% 40% 40% 35% 30% 25% 20% 20% Series1 15% 10% 5% 0% yes No cant sayD) Why you choose Karvy Demat service? Good will Charges Service Safety 25% 30% 20% 25% 35% 30% 30% 25% 25% 25% 20% 20% Series1 15% 10% 5% 0% ill es y es et w rg ic f od Sa rv ha go Se CE) What type of Karvy Demat service?
  38. 38. Highly satisfy Satisfy Dissatisfy 60% 30% 10% 70% 60% 60% 50% 40% 30% Series1 30% 20% 10% 10% 0% highly satisfy Dissatisfy satisfyF) Reason for Dissatisfaction:- Charge Less Lack of Recently Awareness Trading 5% 20% 70% 5% 80% 70% 70% 60% 50% 40% Series1 30% 20% 20% 10% 5% 5% 0% g s s ly n ge es nt di en ar ce ra Ch T ar Re aw of ck ss La Le
  39. 39. Comparative study of Demate Account investment (occupationalinvestment) OCCUPATION INVESTMENMT Service group 45% Business group 40% Other 15%
  40. 40. Comparative study Demat account awareness*(Age group) Age group Awareness 20-30 year 20% 30-40year 40% More than 40 year 40% 45% 40% 35% 30% 25% 20% 15% Series1 10% 5% 0% 20-30 30- More year 40year than 40 year FINDINGS1. People are interested in share market by but they are not much aware about the share market procedure.2. The money problem with share market a big problem3. Trading problem is also a big problem.4. Other group people like agricultural are not aware and interested in share market.
  41. 41. RECOMMENDATIONS The detail study of the project idea to the following recommendation:-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. CONCLUSION Concerning my project title “CONSUMER SATISFACTISFACTION REGARDING DEMAT SERVICES IN MORENA” 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 –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. Karvy gaining good response in the demat field by providing good services.3. I concluded by this that research that services and returns got more importance than goodwill.4. 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.5. I also conclude that many financial services at one place is the another reason of its popularity .
  42. 42. BIBLIOGRAPHY Books:1. Sharma D.D. Marketing Research, 3rd Edition, Publication Sultan Chand & Son Publication.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.karvy.com www.nsdl .com Magazines: Business world. News paper Business line.

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