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Summer Internship Project Report for KARVY
- 1. A Summer Internship Project (SIP) On “CUSTOMER SATISFACTISFACTION REGARDING DEMAT SERVICES IN KARVY” Submitted for partial fulfilment of the requirement for the award of degree of Master of Business Administration of GRAPHIC ERA UNIVERSITY, DEHRADUN (UTTARAKHAND) Session 2018-2020 SUPERVISION BY SUBMITTED BY Mr. Ashutosh Kumar Pandey Aman Rai Senior Manager Roll No. 1401962
- 2. TABLE OF CONTENT ___________________________________________________ I. DECLARATION BY STUDENT II. CERTIFICATE BY COMPANY GUIDE III. ACKNOWLEDGEMENT BY STUDENT IV. EXECUTIVE SUMMARY Chapter-1: INTRODUCTION Chapter-2: INDUSTRY PROFILE Securities Market in India Stock Exchange in India Functions of Stock Market BSE and NSE Chapter-3: COMPANY PROFILE About Karvy Growth and Development of Karvy At Present Status of Karvy Strategy of Karvy Vision of Karvy Mission of Karvy Milestones of Karvy Services Profile of the Karvy Group Companies Stock Broking Services Depositories Participants Our Companies Chapter-4: PROMOTERS & MANAGEMENT TEAM Chapter-5: AWARDS & ACCOLADES Karvy Stock Broking Limited Karvy Comtrade Limited Chapter-6: DEMAT ACCOUNT What is Demat Account
- 3. Motive of Demat System How Demat Account Works Dematerialization Rematerialization Demat Options (Fees Involved) Benefits of Demat Account Disadvantages of Demat Account Advantages of Demat Account How to Open a Demat Account Online with Karvy Documents Required for Demat Account Transfer of Shares between DPs DRF (Demat Request Form) Invest and Trade Through Our Advanced Technology- Driven Trading Platforms Chapter-7: PROJECT DESIGN & METHODOLOGY Research Methodology Marketing Research Types of Research Sources of Data Tools Used Objective of The Project Significance Chapter-8: DATA ANALYSIS & INTERPRETATION Data Analysis Customer Satisfaction Chapter-9: LIMITATIONS & DATA COLLECTION Chapter-10: FINDINGS & RECOMMENDATIONS Chapter-11: CONCLUSION V. APPENDIX VI. BIBILOGRAPHY
- 4. DECLARATION I hereby declare that the Summer Internship Project (SIP) entitled “CUSTOMER SATISFACTISFACTION REGARDING DEMAT SERVICES IN KARVY” submitted for the Degree of Master of Business Administration, is my original work and the Summer Internship Project (SIP) has not formed the basis for the award of any degree, diploma, associate ship, fellowship or similar other titles. It has not been submitted to any other University or Institution for the award of any degree or diploma. (Signature of Student) AMAN RAI
- 5. CERTIFICATE BY COMPANY GUIDE I have the pleasure in certifying that Mr. AMAN RAI is a student of Graphic Era (Deemed to be University) of the Master’s Degree in Business Administration (MBA). His University Roll No is. 1401962. He has completed his Summer Internship Project (SIP) Title as “CUSTOMER SATISFACTISFACTION REGARDING DEMAT SERVICES IN KARVY” under my guidance while working with KARVY STOCK BROKING LTD. I certify that this is his original effort & has not been copied from any other source. This project has also not been submitted in any other university for the purpose of award of any Degree. This project fulfils the requirement of the curriculum prescribed by Graphic Era (Deemed to be University), Dehradun, for the said course. I recommend this Summer Internship Project (SIP) for evaluation & consideration for the award of Degree to the student. Signature : Name of the Guide : MR. ASHUTOSH KUMAR PANDEY
- 6. ACKNOWLEDGEMENT I express my sincere thanks to my project guide, Mr. ASHUTOSH KUMAR PANDEY Designation “Senior Manager”, Dept. “Broking”., for guiding me right form the inception till the successful completion of the project. I also record my indebtedness to my supervisor, Prof. M. P. SINGH for his counsel and guidance during the preparation of this Summer Internship Project (SIP). I am grateful to Dr. NAVNEET RAWAT (Head of Department). I wish to record my sincere thanks to all the employees of KARVY for their help and cooperation throughout our project. (Signature of Student) AMAN RAI
- 8. This project has been a great experience for me and at the same time it gave me enough scope to implement my analytical ability. Stock Broking leading industry which is basically my concern industry around which my project has to be revolved is really a very complex industry. This project as a whole can be divided into two parts: - The first part gives an insight about Demat account and Share trading and its various aspects. It is purely based on what I learned at Karvy Stock Broking Ltd. One can have a brief knowledge about Demat and share trading and all its basics through the project. A part from it I have also gained knowledge briefly about mutual fund, general insurance etc. This entire topic has been covered into a very systematic way. The language has been kept simple so that even a layman could understand. All the data’s have been well analysed with the help of charts and diagrams. The second part consists of data and their analysis, collected through a questionnaire which helps me to clearly know the terms and conditions of different leading stock broking companies and their business strategies. It covers the topic “Customer Satisfaction Regarding Demat Services in Karvy”. The data collected has been well organized and presented. Hope the research findings and conclusions will be of use. I have really enjoyed during the time period of summer internship because I gained much better knowledge about the share market trading activities of Karvy Stock Broking Ltd. The practical knowledge gives me enough scope to implement my experience in related companies in the near future. I am able to know better how to manage the employees work and to take necessary steps to enhance growth and development of the employees as well as the company’s wellness.
- 10. Economic Liberalization has accelerated the pace of development in the India Securities Market which has undergone a sea exchange during the last 2 decades. The role of securities Market in mobilizing and canalizing private capital for the Economic Development of the country has increased over the years and the Securities itself has undergone Structural transformation with the introduction of the computerized online interconnected Market System. Over the years as investment in securities gathered momentum and the need for the national analysis. Only recently security analysis and portfolio management has emerged as an important tool for investors and it is evident that rational investment activity involves creation of an investment portfolio. A portfolio is a group of securities held together as an investment. By constructing a portfolio investor attempt to spreads risk by not putting their eggs into 1 basket. Each individual security has its own risk and return characteristics which can be measured and express quantitatively. Each portfolio by combining the individual securities has its own specific risk and returns characteristics, which are not just the aggregate, the individual security characteristics. The return and risk of each portfolio has to be calculated mathematically and expressed quantitatively. This demands the process of selecting of optimum portfolio.
- 12. SECURITIES MARKET IN INDIA Capital market is the backbone of any country’s economy. It facilitates conversion of savings to investments. Capital market can be classified as primary and secondary market. The fresh issue of securities takes place in primary market and trading among investors takes place in secondary market. Primary market is also known as new issue market. Equity first enter capital market though investment in primary market. In India, common investors participating in the equity primary market is massive. The number of companies offering equity though primary markets increased continuously in the post-independence period till the year 1995. After 1995, there is a continuous slump experienced by the primary market offering equity. The main reason for slump is lack of investors’ confidence in the primary market. So, it is important to understand the causes and measures of revival of investors’ confidence leading to capital mobilizing and investment in right avenues creating, economic growth in the country. Globally, there are increased evidences to suggest that investor confidence has assumed an important role in the economic development of a country. The economist (1998) indicated that a lot of issues need to address to make capital markets safer. Transparency, strengthening financial system and managing crises are the issues, which cannot be quickly fixed. But they add up to a stronger system. “The Securities market is the market for equity, debt and derivatives.” The securities market has essentially 3 categories that is the issuer of securities, the investors in the securities and intermediaries. The issuers are the borrowers or deficit savers, who issue securities to raise funds. The investors, who are surplus savers, deploy their savings by subscribing to these securities. The intermediaries were the agents who match the needs of the users and suppliers of funds for a commission. These intermediaries pack and unpack securities to help both the users and investors to achieve their respective goals. There are a large variety and number of intermediaries providing various services in the Indian Securities market. This process of Mobilizing of resources is carries out under the supervision and overview of regulators. The regulators develop fair market
- 13. practices and regulate the conduct of issuer’s securities and intermediaries. They are also in charge of protecting the interest of the investors. The regulator ensures a high service standard from the intermediaries and supply of equity securities and non- manipulated demand for them in the market. STOCK EXCHANGE IN INDIA The market for long term securities like bonds. Equity stock and preferred stocks are divided in two primary and secondary markets. The primary market deals with the new issues of securities. Outstanding securities are traded in the secondary market which is commonly known as stock market or stock exchange. In the Secondary market the investors can sell and buy securities. Stock markets predominantly deal in the equity share. Debt instruments like bonds and debentures are also traded in the stock market. Well-regulated and active stock market promotes capital formation. Growth of the primary market depends on the stock market. The health of the company reflected by the growth of the stock market. The origin of the stock exchange in India can be traced back to the later of the 19th century. After the American civil war (1860-61) due to the share mania of public, the number of brokers dealing in share increased. The brokers organized an informal association of brokers dealing in share increased. The brokers association” in 1975. At presently in India there are 23 stock Exchanges are there and situated in various part of the country. All the stock exchanges in India are controlled by SEBI (Security Exchange Board of India). FUNCTIONS OF STOCK MARKET Provide quotations of share/ stock for facilitating trading and marketability. Extend liquidity to such stock as they are easily marketable and traded.
- 14. Promotes savings and investment in the economy by attracting funds for investment incorporate shares securities. Ensures safe and fair dealing. Maintain active trading. BSE AND NSE What is BSE? BSE stands for 'Bombay Stock Exchange’, BSE was established as “The Native Share & Stock Brokers’ Association” in 1875 and has been the oldest stock exchange of Asia. This stock exchange provides a transparent and systematic mechanism for trading in equity, currencies, debt instruments, derivatives, and mutual funds. The other facilities provided by the exchange involve clearing, settlement, risk management, market data services, and education. The S&P BSE SENSEX which we term as the SENSEX is the benchmark index that comprises of the 30 most actively traded and financially strong Indian companies listed on BSE. BSE was established as “The Native Share & Stock Brokers’ Association” in 1875 and has been the oldest stock exchange of Asia. This stock exchange provides a transparent and systematic mechanism for trading in equity, currencies, debt instruments, derivatives, and mutual funds. The other facilities provided by the exchange involve clearing, settlement, risk management, market data services, and education. The S&P BSE SENSEX which we term as the SENSEX is the benchmark index that comprises of the 30 most actively traded and financially strong Indian companies listed on BSE.
- 15. What is NSE? NSE stands for 'National Stock Exchange’. NSE was incorporated in 1992 and was recognized as a stock exchange in 1993 under the Securities Contracts (Regulation) Act, 1956. This leading stock exchange of India caters a variety of services to the capital market participants that include trading, clearing, and settlement in equity, equity derivatives, debt and currency derivatives segments. The benchmark index of NSE is NIFTY which represents a weighted average of the 50 most highly liquid and frequently traded Indian companies listed on NSE. BSE vs NSE 1. Both National Stock Exchange and Bombay Stock Exchange are one of the top stock exchanges in India. However, the oldest is BSE and youngest is NSE. 2. While Bombay Stock Exchange is 10th in top stock exchanges, National Stock Exchange is 11th in position. 3. Electronic exchange system was first introduced by NSE in 1992 and BSE’s electronic system, BOLT, came into existence in 1995. 4. While NSE’s index, Nifty 50, gives top 50 stock index, BSE’s index, SENSEX, gives top 30 stock index. 5. BSE became a recognized stock exchange in 1957 and NSE was recognized in 1993.
- 16. BSE vs NSE Differences Infographics
- 19. ABOUT KARVY The KARVY group was formed in 1983 at Hyderabad, India. Karvy ranks among the top player in almost all the field it operates. Karvy Computers shares Ltd is India’s largest Register and Transfer Agent with a client base of nearly 500 blue chips corporate managing over 2 core accounts. Karvy stock brokers Ltd, member of National stock Exchange of India. With over 6,00,000 active accounts, it ranks among the top 5 Depository Participated in India, registered with NSDL and CDSL Karvy COM trade, Member of NCDEX and MCX ranks among the top0 3 commodity brokers in the country. Karvy Insurance Brokers is registered as a Broker 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 fund mobilize with over Rs. 5,000 cores under management. Karvy Realty Services, which started in 2006, has quick established itself as broker who adds value, in the realty sector. Karvy global offers niche off shoring services to client in the US. Karvy has 575 offices over 375 locations across India overseas at Dubai and New York. Over 9,000 high qualified people staff Karvy. Karvy – Early Days: - Karvy the name comes from the names of the directors: K- Mr. Krishna Prasad A- Mr. Arun R- Mr. Radha Krishna V- Mr. Venkat Krishna Y- Mr. Yogendra The birth last of Karvy was on a modest scale in 1979. It began with the vision and enterprise of a small group of practicing Chartered Accounts who founded the flagship company. Karvy
- 20. started with consulting and financial accounting and carved inroads into the field of registry and share accounting by 1985. Since then, Karvy have utilized its experiences and superlative enterprise to go from. Strength to Strength …. To better its services, to provide new ones, to innovative, diversity and the process, evolved Karvy as one of India’s premise integrated financial services enterprise. GROWTH AND DEVELOPMENT OF KARVY Over the last 20 years Karvy has travelled the success route, towards building a reputation as an integrated financial services provider, offering a wide spectrum of services. And they have made the journey by taking the route of quality service. Path breaking innovation in service, versatility in service and finally totality in service. Their highly qualified manpower, cutting-edge technology, comprehensive infrastructure and total customer- focus has secured for us the position of an emerging financial services giant enjoying the confidence and support of an enviable clientele across diverse fields in the financial world. With the experience of years of holistic financial behind us and years of complete expertise in the industry to look forward to, they have now emerged as a premier integrated financial services provider. And today, they can look with pride at the fruits of their mastery and experience Comprehensive financial services that are competently segregated to service and manage a diverse range of customer requirements. 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.
- 21. 5. Registrar of the issues. AT PRESENT STATUS OF KARVY Present Karvy is a member of National stock Exchange (NSE), the Bombay stock Exchange (BSE), and The Hyderabad stock Exchange (HSE). Market analysis and market predictions are done by professional management team. KARVY as covering the spectrum of financial services such as stock Broking Services, Advisory Services, Stock broking, Depository Participants, Distribution of financial products – mutual funds, fixed deposits, equities, Insurance Broking Commodities Broking, Personal Finance Advisory Services, Merchant Banking and corporate Finance, Placement Finance, Placement of equity, IPO’s, among other. Scalability, Flexibility, Adaptability STRATEGY OF THE KARVY 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 financial services sector in the future and draw the boundaries for achieving leadership. Karvy believes
- 22. that customized solutions are now the key drivers for market share and profit margins. VISION OF KARVY To achieve and sustain market leadership, Karvy shall aim for complete customer satisfaction, by combining its human and technological resources to provide world class quality services. In the process Karvy shall strive to meet and exceed customer’s satisfaction and set industry standards. Their values and vision of attaining total competence in their servicing has served as the building block for creating a great financial enterprise, which stands solid on their fortresses of financial strength – their various companies. MISSION OF KARVY “Our mission is to be a leading and preferred services provider to our customers, and we aim to achieve this leadership by building an innovative, enterprising, and technology driven organization which will highest standards of services and business ethics.” MILE STONES OF KARVY
- 23. SERVICES PROFILE OF THE KARVY GROUP COMPANIES Karvy Stock Broking Limited Member – National Stock Exchange (NSE), the Bombay Stock Exchange (BSE), and the Hyderabad Stock Exchange (HSE), Karvy Stock Broking Limited, one of the cornerstones of the Karvy edifice, flows freely toward attaining diverse goals of the customer through varied services, creating a plethora of opportunities for the customer by opening up investment vistas backed by research-based advisory services. Here, growth knows no limits and success recognizes no boundaries. Helping the customer create waves in his portfolio and empowering the investor completely is the ultimate goal. Why should Investors choose for KARVY …? Excellence is next to nothing and here at Karvy everybody tries to offer excellence services to its client through its offerings maintaining the Karvy culture which included: - 1. Controlled and low-cost services culture: - Karvy is there to serve its client at the minimum possible costs. 2. Longer volume processing capability: - Being the largest financial service provider in the country. It has the unique distinction of operating its activities on a large scale which benefits all the parties cordially. 3. Adherence to strict time Schedule: - Karvy knows that time is money and tries it best to finish the task within the stipulated time schedule. 4. Expertise in coordinating Multi-location Responses: - Karvy has got a wide network and hence I can find its branches at most of the places in India. Thus, it enjoys its presence everywhere and co-ordinates among itself in solving the quarries and in responding to any situation.
- 24. 5. Expertise in managing independent entities such as Banks, Post offices, etc: - The work culture of Karvy and the ethics followed inside Karvy makes its workforce with everybody. So, the Karvy person establishes good coordination with independent entities too. 6. Pooling of Group Resources: - Karvy group consists of 8 subsidiaries. So, it can easily pool up its resource for accomplishment of its goals, whenever needed. The group can help each other whenever there are peaks and lows and even in the case when they have huge targets just as we saw few years’ bank, Tata group pooling its resources to acquire Corus. 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 safety anchor in the market is provided by in –depth knowledge of market functioning and changing trends, planning with foresight and choosing options with care. This is what they provide in their Stock Broking services. They offer services that are beyond just a medium for buying and selling stocks and shares. Instead they provide services which are multi-dimensional and multi-focused in their scope. There are several advantages in utilizing their stock Broking services, which are the reasons why it is one of the best in the country. They offer trading on a vast platform; National Stock Exchange. Bombay Stock Exchange and Hyderabad stock Exchange. More importantly, they make trading safe to the maximum possible extent, by accounting for several risk and planning accordingly. They are assisted in this takes by their in-depth research, constant feedback and sound advisory facilities. Their highly skilled research team, comprising of technical analysts as well as fundamental specialists, secure result-oriented information on market trends, market analysis and market predictions. This crucial information is given as a constant feedback to their customers, through daily reports delivered thrice daily; The Pre- session Report, where market scenario for the day is predicted, The Mid- session Report, timed to arrive during lunch break,
- 25. where the market forecast for the rest of the day is given and the post-session Report, the final report for the day, where the market and report itself is reviewed. To add to this repository of information, they publish a monthly magazine. “The Finapolis” which analysed the latest stock market treads and takes a close look at the various investment options, and products available in the market, while a weekly report, called “Karvy Bazaar Baatein”, keeps clients more informed on the immediate trends in the stock market. In addition, their specific industry reports give comprehensive information on various industries. Besides this, they also offer special portfolio analysis packages that provide daily technical advice on scraps for successful portfolio management and provide customized advisory services to help you make the right financial moves that are specifically suited to their portfolio. Stock Broking services are widely networked across India, with the number of trading terminals providing retail stock broking facilities. Its services have increasingly offered customer-oriented convenience, which they provide to a spectrum of investors. High-net worth or otherwise, with equal dedication and competence. But true to their spirit, this success is not their final destination, but just a platform to launch further enhanced quality services to provide you the latest in convenient, customer- friendly stock management. Over the years Karvy have ensured that the trust of customers is their biggest returns. Factors such as their success in the Electronic custody business has helped build on their tradition of trust even more. Consequentially their retail client base expanded very fast. To empower the investor further they have made serious efforts to ensure that their research calls are disseminated systematically to all their stock broking clients through various delivery channels like email, chat, SMS, phone calls etc. Their foray into commodities broking has been path breaking and they are in the process of converting existing traders in commodities into the more organized mainstream of trading in
- 26. commodity futures, both as a trading and risk hedging mechanism. In the future, their focus will be emerging businesses and to meet this objective, they have enhanced their manpower and revitalized their knowledge base with enhances focus on Futures and Options as well as commodities business. DEPOSITORY PARTICIPANTS The onset of the technology revolution in financial service 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 to 3 Depository Participants in the country in terms of customer serviced. Offering a wide trading platform with a dual membership at both NSDL and CDSL, they are a powerful medium for trading and settlement of dematerialized shares. They have established live DPMs, Internet access to accounts and an easies transaction process in order to offer more convenience to individual and corporate investors. A team of process in order to offer more convenience to individual and corporate investors. A team of professional and the latest technological enhancements like SPEED-e make their response time quick and their delivery impeccable, A wide national network makes their efficiencies accessible to all. OUR COMPANIES Karvy Stock Broking LTD: Equity Broking, Depository Participant, Distribution of Financial Products (Mutual Funds, FD and Bonds), Wealth Management Services, Currency Derivatives, Portfolio Management Services Karvy Comtrade LTD: Commodities Broking. Karvy Capital LTD (Formerly Karvy Capital Private LTD): NBFC & Portfolio Manager.
- 27. Karvy Investment Advisory Services LTD (Formerly known as Karvy Insurance Broking LTD): Investment Advisory Services. Karvy Holdings LTD: Core Investment Company. Karvy Middle East LLC: Wealth Management Products for NRI’s. Karvy Realty (India) LTD: Realty Services. Karvy Financial Services LTD: Non-Banking Financial Services. Karvy Insurance Repository LTD: Insurance Repository services. Karvy Forex & Currencies Private LTD: Currency and forex services. Karvy Consultants LTD: Consultancy and Advisory Services, Publications. Karvy Fintech Private LTD (formerly known as KCPL Advisory Services Pvt Ltd): Registrar and Share Transfer agent. Karvy Fintech (Bahrain) W.L.L (formerly known as Karvy Computershare W.L.L) Fund Administrator: Agent for Custody & Registration of Securities, Registered Administrator. Karvy Data Management Services LTD: Data Management Services. Karvy Investor Services LTD: Merchant Banking and Corporate Finance.
- 28. Karvy Insights LTD: Market Research. Karvy Analytics LTD: Analytics. Karvy Solar Power LTD: Power Generation. Karvy Global Services LTD: Business Process Outsourcing. Karvy Global Services Inc, USA: Business Process Outsourcing.
- 29. Chapter-4 PROMOTERS & MANAGEMENT TEAM
- 30. PROMOTERS & MANAGEMENT TEAM Mr. C. Parthasarathy Chairman, Karvy Group Mr. C. Parthasarathy is the Chairman and Managing Director of the diversified financial services Karvy group. C Parthasarathy (CP as he is better known in the Industry), has the uncanny knack of staying ahead of the curve and the foresight to spot opportunities that seem invisible on the horizon for the others. Karvy’s entire history is a case study of turning adversity into opportunity. CP is a chartered accountant by qualification, whose entrepreneurial energy drove him to co- found Karvy in 1983 with a less-than-modest capital of Rs 150,000. Over the years CP’s vision and leadership skills have helped the group navigate through the turbulent times with a strong sense of purpose and clarity of thought. CP is one of the pioneers of financial inclusion. Under his leadership Karvy has won numerous industry awards and accolades. He also is an independent Director in many listed companies. Mr. M. Yugandhar Managing Director Mr. M Yugandhar, Managing Director is a founder member of the KARVY Group. He is a Fellow Member of the Institute of Chartered Accountants of India and has varied experience in the field of financial services spanning over 30 odd years. Yugandhar has helped position and build a strong brand for the group in the registry and other financial services businesses. The registry business of Karvy is one of its flagship businesses and with the collaboration with Computershare has grown to become the largest registrar in India for over two decades. Yugandhar has played a key role in building strong relationships with public sector banks and other PSUs
- 31. which has helped Karvy win some important mandates from some of India’s renowned companies. Karvy under his guidance has helped create the equity cult and substantially built retail investor wealth. He is an Independent Director on the board of several reputed companies. Mr. M. S. Ramakrishna Director Mr. M S Ramakrishna, Director, founder member of KARVY GROUP, he is the orchestrator of technology initiatives such as the call centre in the service of the customer. Mr. Ramakrishna was a member of the Hyderabad Stock Exchange and has more than 30 years of experience in the financial services arena. He has helped KARVY diversify into the field of medical transcription leveraging on the company’s core competency of transaction processing. He is an Independent Director on the board of several reputed companies. MANAGEMENT TEAM Mr. V. Mahesh Managing Director, Karvy Data Management Mr. V Mahesh, is the Managing Director of Karvy Data Management and has work experience spanning over 2 decades with in depth exposure to operations on most financial services businesses. Commencing his professional stint with the Registry business where he has to his credit managing over 300 IPOs and other forms of offerings, he was amongst the first few to work closely on the Book Building process initiated by SEBI in 1995. After initially working with MCS as an Assistant Vice President, he moved to Karvy. He was also responsible to initiate the process of setting up the Depository participant business in Karvy and
- 32. was responsible for both the operations and the marketing of the business. He has been nominated by the NSDL to various committees which addressed key changes to the overall processes and policies for the Demat business. Nurturing the passion for understanding and interpreting technology and processes, he was responsible to create and set up the centralized broking platform, centralized back office operations for all financial products and creating a network of over 500 branches covering over 300 locations for Karvy. He is also instrumental in creating and launching the Online platform of Karvy Stock Broking Limited. He is a Post Graduate in Commerce from University of Madras (M. Com). and also completed Post Graduate Diploma in Computer Applications. Mr. V. Ganesh CEO, Karvy Computershare Mr. V Ganesh is a Chartered and Cost Accountant by profession and has over 2.5 decades of experience in the financial services space and is part of Karvy Group’s leadership team. Before joining KARVY, he was associated with ITC’s risk management and financial audit services department. Earlier he was associated with Proctor and Gamble and was responsible for product pricing and financial support functions for P&G’s soaps and health care businesses. He was instrumental in setting up the Mutual Fund registry business for Karvy. At KARVY, for over 2 decades, Ganesh has been instrumental in building a strong techno-commercial base with emphasis on establishing a pan India branch network, back office processing, call centre, web initiatives, online trading, B2B interfaces etc., in the transfer agency and BPO businesses.
- 33. Mr. Sushil Sinha Wholetime Director, Karvy Comtrade Mr. Sushil Sinha, the Country Head of Karvy Comtrade Ltd, has successfully made Karvy Comtrade a force to reckon with in the marketplace. With over 10 years of expertise in the broking sector, he is a well-known face today in the electronic and print media. Under his aegis, the company has won numerous honours and awards nationwide, including the UTV Bloomberg Leadership Award 2011 and India’s Best Market Analyst Award—for two consecutive years—by Zee Business. Having joined Karvy Comtrade in December 2005 as Senior Manager (Business Development), he has steadily climbed up the organizational ladder to head the business now. Before joining KCTL, he worked in Geojit Financial Securities for two years. Prior to that, he had worked with the Agriculture department in the Government of Jharkhand under various capacities for four years. A science graduate, Mr. Sinha has completed two MBAs, one majoring in Personnel Management & Industrial Relations from Patna University and the other in Agri Business Management from IIPM, Bangalore, a Ministry of Commerce, Government of India institution. Mr. P. B. Ramapriyan CEO, Distribution & Allied Businesses Mr. Ramapriyan is working with Karvy for over 2 decades, He has strength of sorts in the distribution of Financial products including Equity, Bonds, Fixed Deposits and Auto Finance. He has successfully marketed several financial products for large number of corporate of various sizes. He is also responsible for managing the Pan India Network of brokers and sub-brokers. He has been instrumental in Karvy’s success in distribution of debt products.
- 34. Mr. Rajiv R. Singh CEO, Stock Broking Mr. Rajiv R. Singh has been associated with Karvy for more than a decade. He joined Karvy in 2001 and moved up the corporate ladder with his sheer dedication, commitment and hard work. Rajiv, with an enormous experience in finance industry leads the responsibility of all aspects of Karvy’s equity broking business which includes strategy, revenue generation, business development and overall customer satisfaction. Rajiv is widely regarded as a results-driven leader who plays a key role in building the stock broking business of KSBL and make it one of the largest stock broking houses in the country. Rajiv also plays a key role in identifying skills and motivating staff in providing outstanding client service. Rajiv is a Certified Management Accountant–CMA. Mr. J. Ramaswamy Group Head, Corporate Affairs Mr. Ramaswamy, the Group Head for Corporate Affairs, is the official spokesperson for the Karvy Group. Mr. Ramaswamy has more than 25 years of experience in various spheres of the financial services industry, of which 10 years has been in the Legal and Secretarial division of Reliance, handling various public issues, mergers, monitoring performance of various departments, liaising with regulatory bodies and outside agencies (viz., the stock exchange, SEBI, DCA and others), and coordinating all the board meetings. The Corporate Affairs Division is involved in integration and strategic planning of all the business divisions of Karvy. Mr. Ramaswamy’s job responsibility encompasses monitoring the performance of all divisions through regular reviews, initiating and implementing new business initiatives, corporate communication and media relations, acting as official spokesperson for the entire Group, conceptualizing various policies and procedures to improve the internal work environment, and working on a parallel platform with the HR
- 35. department to develop models for raising productivity and cost- effectiveness. Mr. Deepak Gupta Group Head, HR Mr. Deepak Gupta brings with him over 20 years of experience in HR, spanning financial services, ITes and manufacturing. Prior to joining Karvy, he was Chief People Officer, Human Resources, with Bajaj Finance Limited, a Rahul Bajaj Group Company, based at Pune. He has also had a successful career with a few prominent corporate, including SREI, Enam, CRISIL, CEAT Financial Services and Reliance Industries. Deepak holds a Master’s degree in Human Resources Development from Jamnalal Bajaj Institute of Management and a diploma in Business Management and Industrial Relations. Mr. G. Krishna Hari Group Head, Finance Mr. G. Krishna Hari holds a Bachelor’s degree in Commerce and is associate member of the Institute of Chartered Accountants of India (ICAI). He has over 27 years of experience in the areas of finance and accounts functions encompassing fund raising, financial reporting, management accounting, working capital management, taxation, budgeting and forecasting and financial due diligence reviews for mergers & acquisitions and investment proposals. He has been associated with the Karvy Group for the past 15 years and is currently designated as the Vice President- Finance & Accounts at Karvy Stock Broking Limited. Prior to joining Karvy, he was the head of finance & accounts division in Asia Pacific Investment Trust Limited, Hyderabad (Formerly Nagarjuna Investment Trust Limited) an NBFC Company.
- 37. AWARDS AND ACCOLADES To recognise the important role Karvy Comtrade played in agricultural trades and to celebrate their contribution towards catalysing growth in farm incomes, NCDEX announces winners of “KRISHI PRGATI AWARDS,2017”. Karvy Comtrade Ltd has always been a pioneer in Agri and related businesses at NCDEX, bagged the trophy which was handed over by Cabinet Minister for Consumer affairs, Food and Public Distribution Mr. Ram Vilas Paswan and Union Minister of State Mr. Arjun Ram Meghwal. Karvy Commodities honoured with Derivative House of the Year 2017 by the ASSOCHAM on 1st March 2017 at Hotel Le Meridien, New Delhi. The award was presented by Shri C. R. Chaudhary, Hon’ble Minister of State for Consumer Affairs, Food and Public Distribution, Govt. of India. Karvy Comtrade Limited received “Market Excellence Award, Commodities – Metal” in Zee Market Excellence Awards 2016 held at the Taj Mahal Palace Hotel, Mumbai on 6th August. The Hon’ble Union Minister for Power, Renewable Energy and Mining, Mr. Piyush Goyal handed over the prestigious award to KCTL representative. Mr. Rajat Parthasarathy, Director, Karvy Group and Mr. Rajiv Ranjan Singh, Vice- President & Business Head – Stock Broking receiving awards from India’s premier stock exchange BSE – the SKOCH – BSE Order of Merit award and
- 38. the SKOCH – BSE Aspiring Nation award – in recognition of its efforts to educate, empower and help create an enlightened corps of financial market investors. Mr. Sudhendoo Gandhi, GM, KSBL, receiving the “NSDL Star Performer Award 2014” for Highest Asset Value. Mr. Sushil Sinha, Business Head, KCTL & Mr. Suresh Raval, General Manager, KCTL receiving the ‘Broker with Best Corporate Desk for Commodity Broking’ award from Hon’ble Finance Minister then – Sri Pranab Mukherjee at the Bloomberg UTV Financial Leadership Awards 2011. Mr. C Parthasarathy, Chairman, and Managing Director, Karvy Group, receiving the ‘Largest E- Broking House in India’ award at the Dun & Bradstreet – BSE Equity Broking Awards 2010. Karvy Stock Broking Limited. 2014: Won the prestigious “NSDL Star Performer Award 2014 for Highest Asset Value”. Organized by the National Securities Depository, the NSDL Star Performers Awards recognize the best performers in the securities and depositories space. The award ceremony was organized on Saturday, December 20, 2014, at Taj Coromandel, Chennai. Karvy has won this award consecutively for last two years.
- 39. 2010: “Largest E-Broking House in India” at BSE Equity Broking Awards 2010 by Dun & Bradstreet held in ITC Grand Maratha, Mumbai. This award is based on the study carried out by the world’s leading provider of business information, knowledge and insight, Dun & Bradstreet in association with the oldest stock exchange in India, the Bombay Stock Exchange. The BSE-D&B Equity Broking Awards recognizes the brokerage firms based on the number of online accounts, volume of online trade, and service delivery of their online trading platform. Karvy Stock Broking Limited has won this prestigious award for its state of the art, in-house developed Karvy Online, a comprehensive online investment platform that enables investors to invest, anytime from anywhere. 2007: Bagged ace award by receiving the coveted Annual Award for 2006 for “Best CEO, Initiating HR Practices”, by, the Uttar Pradesh Chapter of National Institute of Personnel Management (NIPM). The Award has been conferred to Mr. C Parthasarathy, CMD, Karvy Group, for his contribution to HR practices in Lucknow, organized by UP chapter of NIPM. 2007: “Amity Corporate Excellence” award at the 9th International Business Summit and Research Conference- INBUSH (International Business Horizon) which was held at a glittering function in Noida. This award was conferred by Amity International Business School, Noida. 2006: ISTD – “Vivekananda National Award” for Excellence in HRD & Training. 2004: “Best Depository Participant in the country” award. Karvy Comtrade Limited 2014: Won the prestigious ZEE Business Award for the “Best Agri. Analyst” 2014 in the fifth edition of India’s Best
- 40. Market Analyst Awards on Saturday, 13th Dec. 2014 at The Lalit in Mumbai. 2011: Awarded the “Broker with Best Corporate Desk for Commodity Broking” at the prestigious Bloomberg UTV Financial Leadership Awards 2011 held in Hotel Taj Landsend, Mumbai. Hon’ble Finance Minister of India then, Shri. Pranab Mukherjee was the Chief Guest. The awards have been decided by eminent jury consisting of reputed economists, management & financial consultants. Bloomberg UTV Financial Leadership Awards have been instituted to acknowledge the contribution of the country’s financial champions for extraordinary work done in financial sector. This award is a reflection of Karvy Comtrade – Corporate Desk’s unparalleled strengths in providing unique risk management strategies and hedging calculators for Corporates. Karvy Comtrade’s ability to handle large volumes of trade. efficiently with prompt, accurate and tailor-made services by a talented pool of professionals ensures that Karvy remains relevant to client at all times. 2011: Adjudged as the “Best Analyst in Base Metal Category” at the prestigious “Best Market Analysts Awards 2011″ by Zee Business in association with NCDEX (National Commodity & Derivatives Exchange Limited). The award ceremony was graced with the presence of eminent dignitaries. Zee Business Best Market Analyst Awards have been instituted to honour the contributions of India’s leading financial experts in empowering the retail investors. The Nominations for the Awards were invited from Commodities & Stock Broking companies and Fund houses and were being judged on overall returns achieved for the Stocks, Commodities, Sectors and Companies, the analysts tracked from April 2010 to December 2010.
- 42. WHAT IS A DEMAT ACCOUNT? A DEMAT ACCOUNT is one of the basic requirements to trade online and to convert physical shares into the dematerialized format. It facilitates in document free trade and transfer transactions. It essentially works on similar lines of a bank account. It holds the financial statements and certificates of the holder’s purchases of shares, bonds, government securities, mutual funds, and exchange-traded funds (ETFs). DEMAT ACCOUNT number is quoted for all transactions to enable electronic settlements of trades to take place. Every shareholder will have a Dematerialized account for the purpose of transacting. Access to the Dematerialized account requires an internet password and a transaction password. Transfers or purchases of securities can then be initiated. Purchases and sales of securities on the Dematerialising are automatically made once transactions are confirmed and completed. MOTIVE OF DEMAT SYSTEM India adopted the DEMAT ACCOUNT for electronic storing, wherein shares and securities are represented and maintained electronically, thus eliminating the troubles associated with paper shares. After the introduction of the depository system by the Depository Act of 1996 , the process for sales, purchases and transfers of shares became significantly easier and most of the risks associated with paper certificates were mitigated. HOW DEMAT ACCOUNT WORKS? Central Depositories Is an organization that provides financial services, holds securities in electronic format and assists trading. One of its primary functions is to transfer the ownership of shares from one investor to another. The National Securities Depositories Limited (NSDL) and the Central Depository Services Limited (CDSL) are the two depositories in India.
- 43. Depository Participant (DP) A depository (in simple terms) is an institution holding a pool of pre-verified shares held in electronic mode that offers efficient settlement of transactions. A Depository Participant (DP) is an intermediary between the investor and the depository. A DP is typically a financial organization like a bank, broker, financial institution, or custodian acting as an agent of the depository to make its services available to the investors. Each DP is assigned a unique identification number known as DP- ID. As of March 2006, there were a total of 538 DPs registered with SEBI.
- 44. DEMATERIALIZATION 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. REMATERIALIZATION 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 client’s 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 client’s blocked balances are debited. DEMAT OPTIONS There are many hundreds of Depository Participants (DPs) offering the Demat account facility in India as of September 2011. A comparison of the fees charged by different DPs is detailed below. There are a few distinct advantages of having a bank as a DP. Having a Demat account with a bank DP, usually provides quick processing, accessibility, convenience, and online transaction capability to the investor. Generally, banks credit the Demat account with shares in case of purchase, or credit a savings account with the proceeds of a sale, on the third day. Banks are also advantageous because of the number of branches they have. Some banks give the option of opening a Demat account in any branch, while others restrict themselves to a select set of branches. Some private banks also provide online access to the Demat account.
- 45. Fees Involved There are four major charges usually levied on a DEMAT account: account opening fee, annual maintenance fee, custodian fee and transaction fee. Charges for all fees vary from DP to DP. 1. Demat Account-opening fee There may not be an opening account fee. Private banks do not have one, but other entities do impose an opening fee. 2. Annual maintenance fee This is also known as folio maintenance charges, and is generally levied in advance. It is charged on annual or monthly basis. 3. Transaction fee The transaction fee is charged for crediting/debiting securities to and from the account on a monthly basis. Pay the fee to the transaction value, which is subject to a minimum amount. The fee also differs based on the kind of transaction (buying or selling). Some DPs charge only for debiting the securities, while others charge for both. Some DP's also charge the investor even if the instruction to buy/sell fails or is rejected. In addition, service tax is also charged by the DPs In addition to the other fees, the DP also charges a fee for converting the shares from the physical to the electronic form or vice versa. This fee varies for both Demat (physical-to-electronic) and Remat (electronic-to-physical) requests. For Demat transactions, some DPs charge a flat fee per request in addition to the variable fee per certificate, while others charge only the variable fee. For instance, Stock Holding Corporation has charged Rs 25 as the request fee and Rs 3 per certificate as the variable fee. However, SBI has charged only the variable fee, as Rs 3 per certificate. Remat requests also have charges akin to that of Demat. However, variable charges for Remat are generally higher than Demat.
- 46. Some of the additional features (usually offered by banks) are as follows. Some DPs offer a frequent- trader account, where they charge frequent traders at lower rates than the standard charges. Demat account holders are generally required to pay the DP an advance fee for each account that will be adjusted against the various service charges. The account holder needs to raise the balance when it falls below a certain amount prescribed by the DP. However, if the holders also hold a savings account with the DP, they can provide a debit authorisation to the DP for paying this charge. Finally, once choosing a DP, it would be prudent to keep all accounts with that DP, so that tracking of capital gains liability is easier. This is because when calculating capital gains tax, the period of holding will be determined by the DP, and different DPs follow different methods. For instance, ICICI Bank uses the first in first out (FIFO) method to compute the period of holding. The proof of the cost of acquisition will be the contract note. The computation of capital gains is done account-wise. Indian Banking System First, an investor has to approach a DP 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. An investor must have his/her PAN card in original at the time of opening of the account (mandate effective from April 1, 2006). All applicants should carry original documents for verification by an authorized official of the depository participant, under his signature. Further, the investor has to sign an agreement with the DP in a depository prescribed standard format, which details rights and duties of investor and DP. DP should provide the investor with a copy of the agreement and schedule of charges for their future reference. The DP will open the account in the system and give an account number, which is also called BOID (Beneficiary Owner Identification number). The DP may revise the charges by giving 30 days’ notice in advance. SEBI has rationalised the cost structure for dematerialisation by removing account-opening charges, transaction charges for credit of securities, and custody charges vide circular dated January 28, 2005.
- 47. BENEFITS OF DEMAT ACCOUNT 1. Easy Access and monitoring Demat accounts are completely online, implying it can be easily accessed online from anywhere at any time. It also facilitates easy monitoring of the holdings. 2. Highly Secure Demat accounts have a two-factor authentication (2FA) and are safer than physical shareholding which includes the risk of theft, loss or damage. 3. Lowers Cost Trading of physical shared involved additional costs of stamp duty, handling charges, etc. which are not applicable for Demat accounts. 4. Speed Facilities Since all procedures are electronic, they are less time-consuming and more convenient. One can easily buy, sell and transfer funds and securities with just a few clicks. 5. Corporate Benefits Bonus issues, right shares, or stock split offered by companies are automatically updated in the Demat accounts and dividends, refunds, or interest are also directly available to the Demat account holder. 6. Common Account Demat account organizes all securities in one place as it is not just for shares, it can also hold other securities and investments.
- 48. DISADVANTAGES OF DEMAT ACCOUNT Trading in securities may become uncontrolled in case of dematerialized securities. It is incumbent upon the capital market regulator to keep a close watch on the trading in dematerialized securities and see to it that trading does not act as a detriment to investors. For dematerialized securities, the role of key market players such as stock-brokers needs to be supervised as they have the capability of manipulating the market. Multiple regulatory frameworks have to be conformed to, including the Depositories Act, Regulations and the various Bye-Laws of various depositories. Agreements are entered at various levels in the process of dematerialization. These may cause worries to the investor desirous of simplicity. There is no provision to close a Demat account, which is having illiquid shares. The investor cannot close the account and he and his successors have to go on paying
- 49. the charges to the participant, like annual folio charges etc. After liquidating the holdings, many Indian investors don't close their DP account. They are unaware that DPs charge even on dormant accounts. ADVANTAGES OF DEMAT ACCOUNT OPENING WITH KARVY ONLINE Karvy Stock Broking, the broking arm of Karvy Group, has a rich experience of over 20 years in the industry. One can look forward to open Demat account with us to avail the following benefits of Demat account: Cutting-edge technology and platforms to support trade through browsers, desktop application and mobile application. Best of class research in form of Daily, Weekly, Monthly and Quarterly reports in addition to seasonal and thematic reports. Award-winning performance and customer services. One of top 10 Broking Houses in India One of the largest Retail Brokers with a presence in 1,100+ locations 10 Lakh Broking customers and 25,000+ daily trading clients Advisory and Support Desk services for assisted trading Extended research expert assistance in query resolution
- 50. HOW TO OPEN A DEMAT ACCOUNT ONLINE WITH KARVY? DOCUMENTS REQUIRED FOR DEMAT ACCOUNT To open a Demat account you have to provide documents which fulfil the requirements of KYC (Know Your Customer) norms. You have to sign a contract with Stock broker. Generally, the documents are: 1. PAN (compulsory) 2. Address proof 3. Passport size Photographs 4. Bank crossed cheque (If required) TRANSFER OF SHARES BETWEEN (DEPOSITORY PARTICIPANT) DPS To transfer shares, an investor has to fill one of two kinds of Depository Instruction Slip (DIS). The first check made is whether both Demat accounts are at the same depository. There are two depositories: CDSL [Central Depository Service (India) Limited] and NSDL National Securities Depository Limited)). If both Demat accounts are not at the same depository, then an Inter Depository Slip (Inter DIS) has to be filled and submitted. For example: If there is one Demat account with CDSL and the other Demat account with NSDL, then an Inter-DIS is needed. (In case the investor needs an Inter-DIS, the investor should check with the broker, since brokers usually issue an Inter-DIS).
- 51. Now that the correct DIS has been determined, information pertaining to the transfer transaction has to be entered: scrip name, INE number, quantity in words and figures. Finally, the investor should submit that DIS to the broker with signatures. The transfer broker shall accept that DIS in duplicate and acknowledge receipt of DIS on duplicate copy. The investor should submit the DIS when the market is open. Accordingly, date of submission of DIS and date of execution of DIS can be same or a difference of one day is also acceptable. The investor also has to pay the broker some charges for the transfer. 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. DRF In order to get your shares converted from the physical to the electronic form, you have to submit your certificates along with a
- 52. request form asking for the conversion. This request form is called a DRF or a “Demat Request Form.” INVEST AND TRADE THROUGH OUR ADVANCED TECHNOLOGY-DRIVEN TRADING PLATFORMS Mobile Trading App Karvy Online App Online Web Trading Desktop Based Trading Nest Application
- 53. Chapter-7 PROJECT DESIGN & METHODOLOGY
- 54. REASEARCH 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” 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 following steps, which should be kept in mind to conduct a marketing research in a perfect manner. i. Define the problem and research objective. ii. Develop the research plan. iii. Collect the information. iv. Present the findings. TYPES OF RESEARCH The customer research was carried out in two phases:
- 55. 1. An exploratory research was carried out to know what customer looks for in financial company and whether customers are satisfied or not with these products. 2. 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. Thus, it is useful to consider methods of collecting data and the quality of information produced, 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.
- 56. 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. 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. 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 Demat and the financial product. OBJECTIVE OF THE PROJECT To know the opinion of the consumer regarding the Demat and financial product. To know what consumer, look for while Demating 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 shareholding and where we can get best service at minimum cost. So, my study is about whether the consumer is
- 57. satisfied with all these services that he is getting from different depository participant in Lucknow. 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 their home and in the because share market is the moist volatile market.
- 58. Chapter-8 DATA ANALYSIS & INTERPRETATION
- 59. DATA ANALYSIS I have analysed 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 Lucknow. CUSTOMER SATISFACTION a) Name: b) Gender: c) Occupation: d) Age: (A) Do you have any account in Karvy? Yes No 60% 40%
- 60. (B) Do you know about the Demat account? Yes No 40% 60% (C) Why do You invest in share market? Profile For general investment Other (tax saving) 90% 10% ---
- 61. (D) What do you think Demat account is safe? (E) Why you choose Karvy Demat service? Good will Charges Service Safety 25% 30% 20% 25% Yes No Can’t say 40% 20% 40%
- 62. (F) What type of Karvy Demat service? Highly satisfy Satisfy Dissatisfy 60% 30% 10% (G) What are the reasons for dissatisfaction? Charge Less Awareness Lack of Trading Recently 5% 20% 70% 5%
- 63. Comparative Study of Demat Account Investment (Occupational Investment) OCCUPATION INVESTMENMT Service group 45% Business group 40% Other 15% Comparative Study Demat Account Awareness*(Age Group) Age group Awareness 20-30 year 20% 30-40year 40% More than 40 year 40%
- 64. Chapter-9 LIMITATIONS & DATA COLLECTION
- 65. LIMITATIONS Due to short time I was not able cover all area. No financial support given by the company. Due to lack of awareness and interest on the part of respondents created problem in the collection. DATA COLLECTION I collect the data through questionnaire, which is fill up by the people of the Lucknow City. the purpose of data collection is knowing the satisfaction of customer towards the Demat services in Lucknow. The questionnaire is fill up the 75people. In data collection I asked some question about the satisfaction of customer toward the Demat services. SAMPLING APPROACH There are basically two approaches to sampling: - 1. Probability Sampling. 2. 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. Description of the coverage: I have covered the local area of Lucknow.
- 67. FINDINGS People are interested in share market by but they are not much aware about the share market procedure. The money problem with share market a big problem. Trading problem is also a big problem. Other group people like agricultural are not aware and interested in share market. RECOMMENDATIONS The detail study of the project idea to the following recommendation: - The company should come up with some good strategies to create awareness among people regarding the financially Demat. 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. They should try to provide some extra services to their customers. The company should concentrate more on after sales services.
- 69. CONCLUSION Concerning my project title “CUSTOMER SATISFACTISFACTION REGARDING DEMAT SERVICES IN KARVY” 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 – 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). 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 another reason of its popularity.
- 70. APPENDIX
- 71. QUESTIONNAIRE FORM (This research is done for educational purpose. There is no financial motive) Name: Age: Occupation: Mobile No: 1. Are you employed? a) Yes ( ) b) No ( ) 2. Have you invested/are you interested to invest in share trading? a) Yes ( ) b) No ( ) 3. Do you have a Demat Account? a) Yes ( ) b) No ( ) 4. In which company you have a Demat Account? a) Reliance Money ( ) d) Infoline ( ) b) Religare ( ) e) Karvy ( ) c) Unicon ( ) f) Others ( ) 5. What is the most important reason for not investing in share trading? a) Lack of knowledge about share trading activities ( ) b) Enjoy investing in others ( ) c) It’s benefits are not enough to drive you for investment ( )
- 72. 6. Any other company whose service you like? a) Reliance Money ( ) d) Infoline ( ) b) Religare ( ) e) Karvy ( ) c) Unicon ( ) f) Others ( ) 7. Do you like Karvy Brokerage Demat Account? a) Yes ( ) b) No ( ) 8. According to you which are the most suitable stage to invest in share trading activities? a) Young unmarried stage ( ) b) Young married children stage ( ) c) Married with other children stage ( ) d) Pre-retirement stage ( ) 9. What is your opinion regarding the stock broking services provided by Karvy? Is it a) Good ( ) c) Average ( ) b) Poor ( ) d) Excellent ( ) 10. How much you are in support of Demat Account AMC charges applied by Karvy? Is it a) Good ( ) c) Average ( ) b) Poor ( ) d) Excellent ( ) 11. What is your opinion relating to the rate of interest of margin funding facility of Karvy? Is it a) Good ( ) c) Average ( ) b) Poor ( ) d) Excellent ( )
- 73. 12. How much you are in favour of Demat Account opening charge for share trading purpose? Is it a) Good ( ) c) Average ( ) b) Poor ( ) d) Excellent ( )
- 74. BIBILOGRAPHY