In partial fulfillment of the requirement for the award of Degree of Masters in Business Administration (MBA)

SUBMITTED BY: AJAY BADYAL TRAINEE MBA CTIMIT

INTRODUCTION OF KARVY Karvy group was formed in 1983 at Hyderabad, India. Karvy ranks among the top pl ayer in almost all the fields it operates. Karvy Computershare Limited is Indias largest Registrar and Transfer Agent with a client base of nearly 500 blue chip corporates, managing over 2 crore accounts. Karvy Stock Brokers Limited, member of National Stock Exchange of India and the Bombay Stock Exchange, ranks among t he top 5 stock brokers in India. With over 6,00,000 active accounts, it ranks am ong the top 5 Depositary Participant in India, registered with NSDL and CDSL. Ka rvy Comtrade, Member of NCDEX and MCX ranks among the top 3 commodity brokers in the country. Karvy Insurance Brokers is registered as a Broker with IRDA and ra nks among the top 5 insurance agent in the country. Registered with AMFI as a co rporate Agent, Karvy is also among the top Mutual Fund mobilizer with over Rs. 5 ,000 crores under management. Karvy Realty Services, which started in 2006, has quickly established itself as a broker who adds value, in the realty sector. Kar vy Global offers niche off shoring services to clients in the US. Karvy has 575 offices over 375 locations across India and overseas at Dubai and New York. Over 9,000 highly qualified people staff Karvy. Organization: Karvy was started by a group of five chartered accountants in 1979. The partners decided to offer, other than the audit services, value added services like corp orate advisory services to their clients. The first firm in the group, Karvy Con sultants Limited was incorporated on 23rd July, 1983. In a very short period, it became the largest Registrar and Transfer Agent in India. This business was spu n off to form a separate joint venture with Computershare of Australia, in 2005. Karvys foray into stock broking began with marketing IPOs, in 1993. Within a few years, Karvy began topping the IPO procurement league tables and it has consist

ently maintained its position among the top 5. Karvy was among the first few mem bers of National Stock Exchange, in 1994 and became a member of The Stock Exchan ge, Mumbai in 2001. Dematerialization of shares gathered pace in mid-90s and Kar vy was in the forefront educating investors on the advantages of dematerializing their shares. Today Karvy is among the top 5 Depositary Participant in India. While the registry business is a 50:50 Joint Venture with Computershare of Austr alia, we have equity participation by ICICI Ventures Limited and Barings Asia Li mited, in Karvy Stock Broking Limited. For a snapshot of our organization struct ure, please click here.

Karvy has always believed in adding value to services it offers to clients. A to p-notch research team based in Mumbai and Hyderabad supports its employees to ad vise clients on their investment needs. With the information overload today, Kar vys team of analysts help investors make the right calls, be it equities, mf, ins urance. 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, a llotment / 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 Operations Karvy Stock Broking Ltd (Karvy Stock Broking), a venture of the Karvy group, was established in 1995.It has memberships in the NSE as well as in BSE. In 1998, t he company became a DP with NSDL and CDSL.It services over 20 million individual investors and over 300 corporates. The companys offerings cover stock broking, d epository services, distribution of financial products like mutual funds, bonds, and commodities broking. The company also off ers financial advisory services. Karvy Stock Broking circulates a monthly magazi ne Finapolis that provides information on market trends, investment options, opi nions etc. During the first ten months of 2007, the company added 48,430 new acc ounts in addition to 1540 e broking accounts. It has 3,910 employees, 33 sub-bro kers and 1700 trading terminals in 8 cit Future Plans Karvy plans to enter into JVs in India and abroad. It is also planning to enhanc e its institutional and FII client Base.

1. COMPANY PROFILE The four chartered accountants founded Karvy Consultan ts Limited in 1982. A group of Hyderabad based practicing Chartered Accountants started Karvy taxation services initially. Later, it forayed in to the register and share transfer activities and subsequently into financial services. All alon g Karvys strong work ethics and professional background leveraged with informatio n technology enabled it to deliver quality to the individual. A decade of commit ments, professional integrity and vision helped Karvy achieve a leadership posit ion in its field when it handled the largest number of issue ever handled in the history of the Indian Stock market in a year. Therefore, Karvy made in roads in to a host of capital market services corporate and retail, which proved to be a sound business synergy. Today Karvy has access to million of shareholder, beside companies, banks, financial institution and regulatory agencies. Over the past one and half decade, Karvy has involved as a veritable link between industries, finance and people. In January 1998, Karvy became the first Depository participa nts in Andhra Pradesh. As ISO: 9002 Company, Karvy ranks among the top player in almost all the fields it operates. Karvy Computershare Limited is Indias largest Registrar and Transfer Agent with a client base of nearly 500 blue chip corpora te, managing over 2 crore accounts. Karvy Stock Brokers Limited, member of Natio nal Stock Exchange of India and the Bombay Stock Exchange, ranks among the top 5 stock brokers in India. With over 6, 00,000 active accounts, it ranks among the top 5 Depositary Participant in India, registered with NSDL and CDSL. Karvy Com trade, Member of NCDEX and MCX ranks among the top 3 commodity brokers in the co untry. Karvy Insurance Brokers is registered as a Broker with IRDA and ranks amo ng 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 cro res under management. Karvy Realty Services, which started in 2006, has quickly established itself as a broker who adds value, in the realty sector. Karvy Globa l offers niche off shoring services to clients in the US. Karvy has 575 offices over 375 locations across India and overseas at Dubai and New York. Over 9,000 h ighly qualified people staff Karvy. 2. ORGANISATION Karvy was started by a group of five chartered accountants in 1979. The partners decided to offer, other than the audit services, value add ed services like corporate advisory services to their clients. The first firm in the group, Karvy Consultants Limited was incorporated on 23rd July, 1983. In a very short period, it became the largest Registrar and Transfer Agent in India. This business was spun off to form a separate joint venture with Computer share of Australia, in 2005. Karvys foray into stock broking began with marketing IPOs, in 1993. Within a few years, Karvy began topping the IPO procurement league tabl es and it has consistently maintained its position among the top 5. Karvy was am ong the first few members of National Stock Exchange, in 1994 and became a membe r of The Stock Exchange, Mumbai in 2001. Dematerialization of shares gathered pa ce in mid-90s and Karvy was in the forefront educating investors on the advantag es of dematerializing their shares. Today Karvy is among the top 5 Depositary Pa rticipant in India. While the registry business is a 50:50 Joint Venture with Co mputer share of Australia, we have equity participation by ICICI Ventures Limite d and Barings Asia Limited, in Karvy Stock Broking Limited. Karvy has always bel ieved in adding value to services it offers to clients. A top-notch research tea m based in Mumbai and Hyderabad supports its employees to advise clients on thei

r investment needs. With the information overload today, Karvys team of analysts help investors make the right 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+ telepho ne calls * Mails 25,000 envelopes, containing Annual Reports, Dividend cheques/ advises, allotment / refund advises * Executes 150,000+ trades on NSE / BSE * Ex ecutes 50,000 debit / credit in the depositary accounts * Advises 3,000+ clients on the investments in mutual funds First ISO - 9001: 2000 Certified Registrar i n India 3. KARVY GROUP Karvy group comprises the following:- KARVY CONSULTANTS LIMI TED As the flagship company of the Karvy Group, Karvy Consultant Limited has alw ays remained at the helm of organization affairs, pioneering business policies, works ethic and channels of progress. Karvy as a leader in the registry business now transferred this business into a join venture with Computer share Limited o f Australia, the worlds largest registrar. Today, we service over 6 lacks custome r accounts in this business spread across over 250 cities/towns in India and are ranked amongst the largest Depository Participant in the country, Deal in Regis ter and investment services. We are rated as India s "Most Admired Registrar" fo r overall excellence in volume management, quality processes and technology driv en services. Our services include Initial Public Offers (IPOs) processing, share holder servicing, effecting corporate actions, investor information services and host of technology enabled services to facilitate efficient and effective servi ce delivery. KARVY STOCK BROKING LIMITED They offer trading on a vast platform N ational Stock Exchange, Bombay Stock Exchange and Hyderabad Stock Exchange. Info rmation is given as a constant feedback to our customers, through daily reports delivered thrice Daily- The Pre- session Report, where market scenario for the d ay is predicated, the Mid- session Report, times to arrive during lunch break, w here the market forecast for the rest of the day is given and the Post- session Report, the final report for the day, where the market and the report itself is reviewed. To add to this repository of information, we publish a monthly magazin e Karvy------ The Finapolis Which analyzes the latest stock market trends and take s a close look at the various investment options, and 4. product available in the market while a weekly report, called Karvy Bazaa r Baatein keeps you more informed on the immediate trends in the stock market. In addition, our specific industry reports give comprehensive information on vario us industries. Beside this, we also offer special portfolio analysis packages th at provide daily technical advice on scrips for successful portfolio management a nd provide customized advisory services to help you make the right financial mov es that are specifically suited to your portfolio. The institutional broking arm of KARVY Stock Broking offers corporate houses and institutions dealing capabil ities on India leading stock exchanges (NSE and BSE) in the cash and derivatives segments. This unit has devised a process driven approach to address the needs of institutional investors who have unique and specialized investment needs. The institutional broking services desk is a specialized business unit at KARVY tha t operates out of Mumbai, the financial capital of India and is staffed with bes t-of- industry equity market professionals and highly skilled dealers. KARVY als o supports institutional traders through their institutional sales and research teams with information and insightful reports on stocks, sectors and industry ve rticals. KARVYs institutional broking clientele include some major domestic Mutua l Funds, Insurance Companies, Banks and FIIs in India. KARVY INVESTORY SERVICES L IMITED Karvy Investor Services Limited, a SEBI registered Merchant Banker is a 1 00% subsidiary of Karvy Consultants Limited and is among the top 10 merchant Ban kers in India today. The parent Company i.e. Karvy Consultants Limited was found ed by a group of professionals in 1982 and today it has evolved as integrated fi nancial services company of repute, offering various financial services to suit every requirement/need of our customers. By virtue of its access to millions of Indian Shareholders, in addition to companies, banks and financial institutions, Karvy has in the process built up a positive reputation with regulatory authori ties and other government agencies. Our emphasis on the quality of the services, we offer, has been instrumental in helping us to attain the leadership in the f

inancial services sector. We have a track record of handling 70 public/rights is sues as Merchant Bankers. During the last two years we have handled the share bu yback issues of TTK LIG Limited, Sirpur Paper Mills Limited, Bhagyanagar Metals Limited, A V Thomas Group-Nelliampathy Tea and Produce Company Limited, Chordia Food Products 5. Limited, Heritage Foods (India) Limited, Titanor Components Ltd, Punjab Communications Limited, etc. to name a few. We have also handled/are handling th e Rights/Public issues of Dhanalakshmi Bank, Dhandapani Finance, Moschip, Karur Vysya Bank, Lux Hosiery Industries Ltd, Sah Petroleums Limited, Paradyne InfoTec h Limited, Yash Papers Limited, SPL Industries Limited, Provogue (I) Limited, Tu lip IT Services Limited, Gati Limited as lead managers to name a few. We have al so been appointed as advisor to some of the GOI disinvestments. We have actively marketed bond issues of corporations from the States of Maharashtra, Karnataka & Gujarat and debt issues of all the Financial Institutions like IDBI, ICICI, IF CI, REC, PFC, SIDBI, etc. As an Investment Banker, Karvy provides; Management of Capital Issues Management of Buybacks, Takeovers and Delisting offers Private P lacement of Debt and Equity Mergers and Amalgamations, Loan Syndication KARVY CO MMODITIES BROKING PRIVATE LIMITED- Focused on taking commodities trading to new dimensions of reliability and profitability. We have made commodities trading, a n essentially age-old practice, into a sophisticated and scientific investment o ption. Here we enable trade in all goods and products of agricultural and minera l origin that include lucrative commodities like gold and silver and popular ite ms like oil, pulses and cotton through a well-systematized trading platform. Our technological and infrastructural strengths and especially our street-smart ski lls make us an ideal broker. Our service matrix is holistic with a gamut of adva ntages, the first and foremost being our legacy of human resources, technology a nd infrastructure that comes from being part of the Karvy Group. Our wide nation al network, spanning the length and breadth of India, further supports these adv antages. Regular trading workshops and seminars are conducted to hone trading st rategies to perfection. Every move made is a calculated one, based on reliable r esearch that is converted into valuable information through daily, weekly and mo nthly newsletters, calls and intraday alerts. Further, personalized service is p rovided here by a dedicated team committed to giving hassle-free service while t he 6. brokerage rates offered are extremely competitive. Our commitment to exc el in this sector stems from the immense importance those commodities broking ha s to a cross-section of investors, farmers, exporters, importers, manufacturers and the Government of India itself. Visit us at www.karvycomtrade.com KARVY MUTU AL FUND SERVICES Investment is the stepping stone to achieving one s financial d reams. Mutual funds offer an opportune way to long-term wealth creation. However , with more and more funds flooding the market, the task of selecting the most s uitable scheme gets even more complicated. Mutual Fund Advisory Service at Karvy guides you through this maze and ensures that your investments are backed by ou r quality research. We, at Karvy help you to reach your goals by offering: * Pro ducts of 33 AMCs * Research reports (existing funds & NFOs; strategy reports etc .) * Customized mutual fund portfolios * Portfolio revision (depending on changi ng market outlook and evolving trends) * 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 a company for the first time in the market t o fund its projects. In return, the company gives the share to the investors in the company. In an IPO, the Lead managers decide the price of the issue. In a bo ok building offer, the syndicate members decide the indicative price range and t he investors decide the price of the issue through a tender method. A draft pros pectus provides the information on the financials of the company, promoters, bac kground, tentative issue price etc. It is filed by the Lead Managers with the Se curities & Exchange Board of India (SEBI) to provide issue details. Overview of the draft prospectus can be seen on www.sebi.gov.in (SEBI s web site 7. click here). The final prospectus is printed after obtaining the clearan ce from SEBI and the Registrar of Companies (ROC). KARVY FIXED INCOME SECURITYIE S & TRADING (K-FIST) It was started in December 2002 with a roll out from 7 dedi

cated centers of Karvy. The Retail Debt Market division which is centralized at the HO in Hyderabad provides fixed income products to its clients and is primari ly a fund based activity. The deal sizes vary from Rs.10,000 to Rs.5 cores. Prod ucts - Central Government securities, State Development Loans, State Guaranteed bonds, Public Sector Undertaking Bonds, Financial Institution Bonds, and Bank bo nds of SLR/Non-SLR category, both taxable and tax-free. Target clients - Provide nt Fund Trusts, Educational & Religious trusts, charitable trusts, and Co-operat ive banks, Regional Rural Banks, Corporate, and High Net worth Individuals Stand ard Operating Procedures - Based on the specific needs of the prospects Quotes o f all categories of bonds are sent. The selection of instrument is done and post negotiation (if any) the settlement date is finalized. Contract notes are excha nged and written confirmations are obtained before initiating the trade settleme nt. On the agreed settlement date, the funds and securities are exchanged betwee n the parties. Primarily all the trades are in the electronic mode only. The Who lesale Debt Market division is centralized at Mumbai and is a voice based order matching activity which is fee based. The deal size is a minimum of Rs.5 cr. And the reporting is done on the NSE. Products - Central Government securities, Sta te Development Loans, State Guaranteed bonds, Public Sector Undertaking Bonds, F inancial Institution Bonds, and Bank bonds of SLR/Non-SLR category, both taxable and tax-free. Target clients - Co-operative banks, commercial banks, Corporate, Financial Institutions, Insurance companies and Asset Management Companies. Sta ndard Operating Procedures - The dealers generate 2-way quotes during the tradin g hours and match the institutional buyers and sellers. The deal contract notes are generated and exchanged between the 2 parties. The fees are collected by rai sing debit notes on a monthly basis. 8. KARVY REALITY (INDIA) LIMITED (KRIL) is promoted by the KARVY Group, Ind ias largest integrated financial services group. The group carries forward its le gacy of trust and excellence in investor and customer services delivered with a passion for services and the highest level of quality that align with global sta ndards. KRIL is engaged in the business of real estate and property services. * Buying/ selling/ renting of properties * Identifying valuable investments opport unities in the real estate sector * Facilitating financial support for real esta te and investments in properties * Real estate portfolio advisory services. KRIL is your personal real estate advisor guiding and hand holding you through real estate transactions and offering valuable investment opportunities. Building on the KARVY brand as a leading industry benchmark for world class customer servici ng and quality standards, KRIL brings to investors a reputation of reliability, dependability and honesty. Our understanding of the needs and preferences of our clients and our teams of qualified realty professionals help us to establish fr uitful 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 and commercial) * Investing Options: Give your inv estments a good opportunity with properties marketed by KRIL. * Financing Option s: Get unmatched deals for financing your investment * Research Options: We unde rtake valuation and feasibility studies, area analysis and customized analysis o n behalf of clients. KRIL has ongoing relations with builders and developers acr oss the country which will help you place your investments in the most genuine p roperties for a good value appreciation at the right place and at the right pric e. KRIL is committed to the guiding principles of quality, timely service delive ry, fair pricing, transparency and integrity. KARVY INSURANCE BROKING PRIVATE LI MITED 9. At Karvy Insurance Broking (P) Ltd. we provide both life and non-life in surance products to retail individuals, high net-worth clients and corporate. Wi th the opening up of the insurance sector and with a large number of private pla yers in the business, we are in a position to provide tailor made policies for d ifferent segments of customers. In our journey to emerge as a personal finance a dvisor, we will be better positioned to leverage our relationships with the prod uct providers and place the requirements of our customers appropriately with the product providers. With Indian markets seeing a sea change, both in terms of in vestment pattern and attitude of investors, insurance is no more seen as only a

tax saving product but also as an investment product. By setting up a separate e ntity, we would be positioned to provide the best of the products available in t his business to our customers. Our wide national network, spanning the length an d breadth of India, further supports these advantages. Further, personalized ser vice is provided here by a dedicated team committed in giving hassle-free servic e to the clients. KARVY PORTFOLIO MANAGEMENT SERVICE LIMITED KARVY is a premier integrated financial services provider, and ranked among the top five in the cou ntry in all its business segments. KARVY owes its success to its professionally managed team of experts, who have been chosen from some of the most reputed inst itutions and firms across India. In today s intricate and volatile market your i nvestment requires constant monitoring and attention. The demand made on your ti me and energy by other business may not leave you with capacity to attend to you r personal portfolio with the degree of care you deem appropriate. We at KARVY u nderstand your situation and offer PMS services taking the same level of care an d attention you would devote to monitoring your portfolio. Green Wallet is an En deavour specially designed by Karvy to enhance the wealth of a niche segment of investors. This service primarily meant for HNIs (High Net worth Individuals) of fers customers a wide range of schemes. These unique schemes seek to achieve hig her returns through broad based participation in equity markets. This is achieve d by creating a diversified equity portfolio of small, medium and large capitali zed companies. 10. KARVY DEPOSITORY SERVICES LIMITED Stock Broking Limited provides deposit ory services to investors as a Depository Participant with the National Securiti es Depository Limited (NSDL) and Central Depository Services (India) Limited (CD SL). The Depository system in India links Issuers, National level Depositories, Depository Participants and Clearing Houses / Clearing Corporation of Stock Exch anges. Our demat services are accessible through any of our network of over 575 branches / investor service centers located in over 375 cities and towns across the country. Our demat services business has the distinction of having all its o perations ISO 9001: 2000 certified with state-of-the-art technology and operatio ns capabilities. Our demat services has innovated over time and we provide onlin e access to account statements and transaction alerts through SMS to its clients . KARVYs Demat services offer you a secure, convenient and paperless way to keep track of your investments in shares and other security instruments over time, wi thout the hassle of handling paper based transcripts. We provide the following s ervices: * Dematerialization of Shares * Dematerialization of Shares * Transfer of Shares * Pledging of Shares * Electronic Custodial Services * Maintenance of Beneficial Holdings * Electronic Credit against Corporate Actions 11. Strive to keep all stakeholders (share holders, clients, investors, emp loyees, suppliers and regulatory authorities) proud and satisfy. Strive to be a r eliable source of value-edit products and services and constantly guide the indi viduals and institutions in making judicious choices of same. Use state-of-the a rt information technology in developing new and innovative financial products an d services to meet the changing needs of investors and clients. Continue to upho ld the values of honesty and integrity and strive to establish unparalleled stan dard and business ethics. Provide high quality of work life for all its employee s and equip them with adequate knowledge and skills so as to respond to customers needs. Establish a partner relationship with its investors service agent and ve ndors that will help in keeping up it commitments to the customers. Build-in-hou se processes that will insure transparent and harmonious relationship with its c lients and investor to provide high quality of services. QUALITY POLICY OF THE CO MPANY:- To achieve and retain leadership, Karvy shall aim for complete customer satisfaction, by combining its human and technological resources, to provide sup erior quality financial service, in the process, Karvy will strive to exceed cus tomers expectation. Quality Objectives:- As per the quality policy, Karvy well: 12. STRATEGY OF THE COMPANY:- Karvy believes that the foremost ingredient fo r 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 a nd technology, would drive the financials services sector in the future and draw

the boundaries for achieving leadership. Karvy believes that customized solutio ns are now the key drivers for market share and profit margins. DEVELOPMENT ACTI VITIES:- Karvy has sought to broaden the scope of its activities by examining al l sectors of the economy and by introduction new concepts, new instruments and i n some cases new institution to response to perceived needs. In this regards, ka rvy developmental activities have encompassed such diverse areas as financial in vestment, insurance, depository participants services, skill development activiti es etc. It has also been a pioneer in setting up PAN. TAN services, and also set ting up specialized institution in certain key sections. 1. TIN facilitation cen tre. 2. Stock broking centre. 3. Financial centre. 4. Banking centre. 5. Registr ar of the issues. A separate department is present with the sole intent of provi ding financial services to various charitable, educational and social welfare or ganizations. 13. Major issues managed as co-managers. o Indus land Bank Ltd. o ICICI Bon ds-March97. o ICICI Bonds-dec.97. o ICICI safety Bonds-April 98, July98, Oct.98, Dec.98, Jan.99. o The Jammu Major issues managed as arrangers: o Kerala state El ectricity Board. o Power Finance Corporation. o A.P. water resources development corporation o A.P. state electricity board. o Haldia petrochemicals Ltd. First depository participants in Andhra Pradesh. Handling the reliance account, this a ccounts for nearly 10 million account holders. Handled over 500 public issues as Registrars. Handled the largest ever public issue-IDBI. Ranked as the most admire d Registrar by MARG A category- 1- Registrar to public issues. A category- 1- Mer chant banker. First ISO- 9002 certified Registrar in India. Largest mobilize of funds as per PRIME DATABASE. ACHIEVEMENTS:- & Major issues handled and registra r to issues. o IDBI equity o Morgan Stanley mutual fund o Bank of Baroda o Bank of Punjab Ltd. o Corporation Bank. o Indus land Bank Ltd. o Jammu Kashmir BankLtd. & Kashmir Bank Ltd. o Housing and Urban development corporation (HODCO) Ltd. o Madras Refineries Ltd. 14. Andhra Pradesh state Electricity Board. Andhra Pradesh Water Resources D evelopment Corporation Power Finance Corporation Ltd. Krishna Bhgya Jala Nigam L td. Kerala state electricity Board. IDBI Flexi Bonds III IDBI Flexi Bond II IDBI lexi Bond-I ICICI Bond 96. ICICI Safety Bond-March 98. ICICI Bonds-97-II. ICICI Bonds- 97-I ICICI Bonds-96. ICICI Bonds ( Private placement ) Andhra Pradesh Roa d Development Corporation Ltd. o BPL Ltd. o Birla 3M Ltd. 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 cror e in the following debt issues 15. OVERVIEW OF DEMAT ACCOUNT 16. RBI has also reduce the minimum margin to 25% for loans dematerialized securities as against 50% for loans against physical securities RBI has increased the limit of loans against dematerialized securities as collateral to rs.2 mn p er borers as against Rs.1 mn per borers in case of loans against physical securi ties. You can also expect a lower interest charge for loan taken against demat s hares as compared to interest for loan against physical shares .this could resul t in a saving of about 0.25% to 1.5% some banks have already announced this . Yo u can also receive your bonuses and rights into your depository account as a dir ect credit, thus eliminating risk of loss in transit. No mutilation or loss of s hare certificates in transit. No prevalence of fake certificates in the markets No possibility of theft of share certificates. No possibility of forgery on vari ous document dealing to bad deliveries, legal disputes. No delay in transfer of shares. No loss of share certificates. DEMAT ACCOUNT:- Demat account is very much similar to saving current account of a bank, with the only difference being tha t it deals with securities in electronics form and not money .A demat account is j ust polite farewell to paperwork and a warm welcome to greater efficiency and fo r that matter, security. A Dmat account a unique, capital- market-investor-orien ted Benefits of the Demat account:17. DEMAT SERVICES OF KARVY 18. DEMATERIALISATION Dematerialisation is a process in which you can conver t physical share certificates into electronic shares. Shares should have been tr

ansferred in your name / joint names before sending it for dematerialisation. Yo u 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 yo u may receive delivery in the demat form as per the option of the seller. REMETR IALISATION: It is the process by which a client can get his electronic holdings converted into physical certificates. The client has to submit the rematerialisa tion request to the DP with whom he has an account. The DP enters the request in its system which blocks the clients holdings to that extent automatically. The I ssuer / R& T agent then prints the certificates, dispatches the same to the clie nt and simultaneously electronically confirms the acceptance of the request to N SDL. Thereafter, the clients blocked balances are debited. PLEDGE: To deposit per sonal property as security for a personal loan of money. If the loan is not repa id when due, the personal property pledged shall be forfeit to the lender. A cli ent (pledged) having a beneficiary account with a Depository Participant can ple dge securities in electronic form against loan / credit facilities extended by a pledge, which too has a beneficiary account with a Depository Participant. 19. HOW TO OPEN KARVY DEMAT ACCOUNT Step 1. Account opening forms are availa ble at all karvy centers fill up the account opening form and submit the same wi th some formalities. If your shares are held in joint 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 all your future demat related correspondence with Karvy. Step 3. Submit a dematerialization request form (DRF) for the conver sion of the shares certificates into electronic form. Step 4. After the necessar y verification has been done by the registrar/ company, an appropriate entry is made into your demat account. FORMALITIES THAT ARE REQUIRED TO BE COMPLETED TO O PEN A ACCOUNT:- To open a Depository Account, you have to submit the duly filled in Account Opening form along with the following documents: Residential Proof Copy of Ration Card, Passport, Driving License, Telephone Bill, Electricity Bil l or Rental Agreement Photo Identity Proof - Copy of Driving License, Passport o r Ration Card Why to open a demat account with karvy? Karvy is Indias premier fin ancial institution. It was setup in1982 and today has and first depository parti cipants ,no.1 registrar and ISO 9002 company in India .And also has many achieve ment with over 10 lakh investors having entrusted to keep stock there. Moreover, you have the convenience of operating you demat account from any of the karvy c enters spreading across 46 cities in India Online Demat service in karvy: 20. Karvy provide facility to online demat services Karvys electronic Custodi al Services are: Convert your physical holding into electronic holding (which is called "dematerialisation" of securities) Keep custody of your holdings in elec tronic form. Transfer the shares in the electronic form from one account to anot her. Facilitate pledge of your electronic securities. Give electronic credit of new share allotments such as public issues, bonus, rights etc. Convert your elec tronic holding into physical holding (which is called "rematerialisatoin of secu rities. Buying and selling of shares by karvys Demat account: After you open an a ccount with karvy, you can buy and sell shares in electronic form .in order to s ell shares in the demat mode you need to provides your depository with the numbe r of shares sold by you. When you share in the depository mode, you must, simila rly provide the depository with the details so that shares purchased will be cre dited to your account. It is advisable to give a standing instruction at the tim e of account opening to automatically receive the credit to your demat account. The debit or credit to your account is affected immediately after the se Benefit by selling demats shares:- Brokers have no fear of bad delivery while selling d emat shares. Due to this, they offer lower brokerage to you.As bad deliveries ar e eliminated shares is not returned due to objections, resulting in saving of co sts and follow up. 21. Why should I buy shares in the demat form:- The single biggest reason ove r buying shares in the physical form is that demat shares credited to your accou nt within 2 to 3 days after the end of the settlement. This is unlike the averag e 30 to 40 days taken in receiving back physical shares from the R& Customer led ger: 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 st atement 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. Personal details: provides your various client related info rmation like client name, client address, joint holders name, account type, bank account details for a give client id. Status of request: you can also get statu s of your transactions by status or Requests. Transaction statement: you can vie w transaction in your account for a period of 15 days. Various options are avail able in transaction statement when you want. T Agent and sometimes with objection s.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 tra nsfer of shares worth of Rs.1ttlement... By demat account you can get following facilities:22. DEPOSITORY SERVICE CHARGES FOR RESIDENTS RETAIL CUSTOMERS AND CORPORATE: S no. Charge Head Standard Frequent/ Charges Sub-brokers 1. A/c opening. Rs. 10 0 Rs.100 2. Annual service charge. Rs.300 RS.1250 3. Custody Fee( an A/c with IS INs will Rs.2.25 per ISINs RS.2.25 per ISIN be assume to have one ISIN) per quar ter per quarter 4. Agreement stamp paper As per respective As per state Act resp ective state Act 5. Buy- Market and Off-market (%of 0.02 %( Min. Rs. Nil transac tion 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%( M . 5 ) Rs. 500 for debt instrument for each instruction for each instruction 6. R ejection / fails. Rs. 20 Rs 10 7. Extra charges for processing of Rs.10per IsIN / R. 10 per ISIN TIFDs Submitted late (%of transaction value ) * On the executio n date (accepted at clients risk ) 8. For each request form. Rs. 35 Rs. 35 9. Ex tra for each certificate. Rs. 2 Rs.2 10. Dematerialization. Rs.20 Rs.20 11. Clos ure of account. Nil Nil 12. Pledge creation / closure/ o.o2 % ( Min 0.02% (Min R s. confirmation/ invocation (%Of value Rs.20) 20) for each ISIN in each request) . 13. Addition account statement. Rs.20 Rs.20 23. Karvy reserves the right to revise the tariff structure from time to ti me with a notice of 30 days. The notice may be given by ordinary post or by an a dvertisement in a national daily. Any service, which is not mentioned above, will be charge separately as per the rates applicable from time to time. 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 custome r, for any reason whatsoever. There will be a charge of Rs. 100/- resumption of services in such cases. The value of shares and charges and calculated as per NS DL formula and rates. NSDL CHARGES ARE CHARGEABLE EXTRA AT ACTUAL .PRESENT NSDL C HARGES ARE: Sell-Market and Of - Market Rs. 8/-per debit instruction nil for com mercial paper and short term debt instruments. Remat Rs. 10/-per certificate Ple dge Creation Rs.25/-per instruction Custody Fee( on the basis of ISINs Rs. 1/-pe r ISINs in the account on the last Saturday of each month) 24. RESEARCH METHODOLOGY The main objective of a research is to find out th e truth which is hidden and which has not been discovered. According to advance learners dictionary of current English the definition of research is:- A careful i nvestigation or enquiry especially through search for new facts in any branch of knowledge 1. Marketing research:- Marketing managers often commission formal mar keting studies of specific problems and opportunities. They may request a market survey, a product preference test, or an advertising evaluation. Marketing rese arch is the function which links the consumers, customers and public to the mark eter though information- used to identified and define marketing opportunities a nd problems, generate ad evaluate marketing actions :- monitor marketing perform ance and improve understanding of marketing as a process. Effective marketing re search 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. D evelop the research plan. c. Collect the information. d. Present the findings. T ypes of research The customer research was carried out in two phases: a. An expl oratory research was carried out to know what customer looks for in financial co mpany and whether customers are satisfied or not with there products

25. b. the other was a diagnostic study to identify the factors responsible for satisfactions or dissatisfaction of customer . SOURCES OF DATA The data need ed data this study has been collected from two main sources :- 1. Primary source s. 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 comp any 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 u seful to consider methods of collecting data and the quality of information prod uced, a. Questionnaires:- It is the basic methods of collecting data in marketin g 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 researc hes collects data ask questions. They keep track of the objects or actions in wh ich they are interested. Sometimes individual makes the observation on the other occasions mechanical devices note and record the desired information. In this s tudy the data was collected by means of questioning since the method of observat ion is also used for checking the awareness regarding the financial products. Th e questionnaires were filled by using tested personal interviews. 26. 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 informati on I also use this method by calling them through telephone in their homes, offi ces, institutions etc. and made them aware from the demate and the financial pro duct. 27. Due to lack of awareness and interest on the part of respondents create Due to d problem in the collection. Not financially support given by the company. short time I was not able cover all area. OBJECTIVES OF THE PROJECT 1. To know t he opinion of the consumer regarding the demate and financial product. 2. To kno w what consumer look for while denmating their shares. 3. To know the satisfacti on/dissatisfaction level of consumers towards the financial companies. 4. To kno w the factors responsible for the satisfaction/dissatisfaction of the consumers 5. To know the potential market of the karvy. SIGNIFICANCE This area demands max imum benefits at minimum cost. An investor as to decide in this electronic tradi ng 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 participan t in Morena and Gwalior Consumer satisfaction can be defined as more that expect ed that is one get more what he is expecting. So an investor finds himself satis fy when he get services at there home and in the because share market is the moi st volatile market. LIMITATION 28. 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 qu estionnaire is fill up the 75people. In data collection I asked the some questio n about the satisfaction of customer toward the demat services. DATA ANALYSIS I have analyzed the data in following manner using following satisfaction and diss atisfaction grounds:- 1. Choosing criteria. 2. Dissatisfaction ground. 3. Rating among companies. 4. No of a/c opened in Morena. SAMPLING APROACH There are basi cally two approaches to sampling:- a. Probability Sampling. b. The sampling for the Customers Survey was selected by random sampling. Random number was generated for selecting the sample. A sample size of 50 customers survey. c. Description o f the coverage. 29. I have covered the local area of Morena. 30. CUSTOMER SATISFACTION 1. Name 2. Gender 3. Occupation 4. Age Yes No 60% 40% 70% 60% 60% 50% 40% 40% Series1 30% 20% 10% 0% Yes No B) Do you know about t he demat account ? Yes No 40% 60% 31. 70% 60% 60% 50% 40% 40% Series1 30% 20% 10% 0% yes No (C) Why do You inv est in share market? Profile For general Other(tax saving) investment 90% 10% --

- 100% 90% 90% 80% 70% 60% 50% Series1 40% 30% 20% 10% 10% 0 0% Profile For Othe r (Tax General Savings) Investment D) What do you think Demat account is safe? Y es No Cant say 40% 20% 40% 32. 45% 40% 40% 40% 35% 30% 25% 20% 20% Series1 15% 10% 5% 0% yes No can t s ay D) Why you choose Karvy Demat service? Good will Charges Service Safety 25% 3 0% 20% 25% 35% 30% 30% 25% 25% 25% 20% 20% Series1 15% 10% 5% 0% ill es y es w e t rg ic af od rv ha S go Se C E) What type of Karvy Demat service? Highly satisf y Satisfy Dissatisfy 33. 60% 30% 10% 70% 60% 60% 50% 40% 30% Series1 30% 20% 10% 10% 0% highly sa tisfy Dissatisfy satisfy F) Reason for Dissatisfaction:- Charge Less Lack of Rec ently 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 es ge nt di en ar ce ra Ch T ar Re aw of ck ss La Le C omparative study of Demate Account investment (occupational investment) 34. OCCUPATION INVESTMENMT Service group 45% Business group 40% Other 15% 35. Comparative study Demat account awareness*(Age group) Age group Awarenes s 20-30 year 20% 30-40year 40% More than 40 year 40% FINDINGS 1. People are inte rested in share market by but they are not much aware about the share market pro cedure. 2. The money problem with share market a big problem 3. Trading problem is also a big problem. 4. Other group people like agricultural are not aware and interested in share market. 36. RECOMMENDATIONS The detail study of the project idea to the following re commendation:- 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 servi ces to their customers. 4. The company should concentrate more on after sales se rvices. CONCLUSION Concerning my project title CONSUMER SATISFACTISFACTION REGARD ING DEMAT SERVICES IN MORENA the survey conducted by me as I found that the consu mer satisfactions the only way for the success of any organization in the presen t time. And I came to the following conclusion which is as follows 1. Response w as 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 tr ue 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 t hat 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 fin ancial services at one place is the another reason of its popularity . 37. BIBLIOGRAPHY Books: 1. Sharma D.D. Marketing Research, 3rd Edition, Publ ication 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.