Karvy Project Report Chetan Daiya

A Project Study Report

On Training Undertaken at

“Franchisee & Remiseship Development in Karvy” Submitted in partial fulfillment for the Award of degree of

Master of Business Administration

Submitted By:- Submitted to:-Chetan Daiya Prof. G.N.PurohitMBA Part 3rd (Director)

VYAS INSTITUTE OF MANAGEMENT 2008-2010

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PREFACE

THE CORPORATE PROGRAM of MBA course is a well structured and integrated programme. The course of management gives a practical knowledge in our study course. Industries give us much information about the different product and services we use in our day to day life.

It is highly said that “practice makes a man perfect” the summer project training which is a part of M.B.A to get a practical understanding and training of the business management. Thus the industrial training which is a part of M.B.A course helps the student to get the knowledge about the actual environment of an organization.

Karvy Stock Broking ltd. is one of such company dealing in Share market Derivatives, Commodities, Mutual fund IPO distribution with almost branches in overall India.

It involved the study of Marketing activities of the organization. I have under taken industrial training in Karvy Stock Broking ltd. at Delhi crossing from 27-may-2009 to 6-july-2009 as a part of my MBA course curriculum and I thus, present a project report on it at the best of my ability knowledge and work done.

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ACKNOWLEDGEMENT

I am really happy and exited in representing this summer training project report before you.

I must express my gratitude towards Karvy Stock Broking Ltd, Delhi

for giving mean opportunity to work with on this report.

And of course I am very much thankful to our honorable Director Prof. G.N.Purohit (PROJECT GUIDE) for giving me opportunity and his guidance help me through out preparing this report. He has also provided me a valuable suggestions and excellence guidance about this training, which proved very helpful to me to utilize my theoretical knowledge in practical field.

At last I am also thankful to my friends, to all known and unknown individuals who have given me their constructive advise, educative suggestion, encouragement, co-operation and motivation to prepare this report.

Chetan Daiya

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EXECUTIVE SUMMARY

India’s economy is highly developing. The development is taken place due to the growth in the financial system. This financial system provides the background to various investors regarding varied options to invest. Thus, development of the economy depends on how these investors invest for the well being in long run.

As financial markets become more sophisticated and complex, investors need a financial intermediary who provides the required knowledge and professional expertise on successful investing. Mutual Funds represent perhaps the most appropriate investment opportunity for investors. No wonder the concept of Mutual Fund was initially developed in the U.S. market, but the entry of the concept in the Indian Financial Market was in the year 1964 with the formulation of the UTI, at the initiative of the RBI and Govt. of India.

For most people, money is a delicate matter and when it comes to investing they are wary. Simply because there are many investment options out there, each out promising the other. An important question facing many investors is whether to invest in Banks, National Savings, Post office, Non-banking finance companies, Fixed deposits, Shares etc. or to invest distinctively in Mutual Funds.

I have observed that approximately 40% of the people are unaware of Trading but most of them are interested to know about trading and ready to attend seminar arranged by KARVY. They are also interested to work with KARVY if sufficient information is provided to them about Trading and KARVY.

People from service class prefers safety of income plus the regular income as well as tax benefits while on the other hand Professional and Businessman focus on high return with some risk.

For growth and development of the Stock Market Industry, the misconception regarding Share Market should be removed & the awareness for the same should be made.

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CONTENTS

1. Introduction

Introduction of the IndustryIntroduction of the Organization

Company Details Where Karvy Stand In The Market? Mission Statement of ‘Karvy’ Karvy Group Company

2. Profile of the broking house in the stock market

Karvy Kotak securities Share khan India infoline Bonanza Reliance money Religare securities India bulls Anand rathi Hem Securities Angel Broking

3. Research methodology objective and limitationTitle of the StudyDuration of the ProjectObjective of studyType of Research Scope of studyLimitation of study

4. Facts and FindingProblem definitionResearch designSource of dataResearch objectiveStatement of problem

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Objective of the research project

5. Conclusions6. Recommendation and suggestions7. Q u e s t i o n n a i r e8 . B i b l i o g r a p h y

INTRODUCTIONCOMPANY DETAILS

Background

Karvy Consultants Limited was established in 1982 at Hydrabad. It was established by a group of Hydrabad-based practicing Chartered Accountants. At initial stage it was very small in size. It was started with a capital of Rs. 1,50,000.

In starting it was only offering auditing and taxation services. Later, it acts into the Registrar and Share transfer activities and subsequently into financial services and other services like Financial Product Distribution, Investment Advisory Services, Demat Services, Corporate Finance, Insurance etc.

All along, Karvy’s strong work ethics and professional background leveraged with Information Technology enabled it to deliver quality to the individual. A decade of commitment, professional integrity and vision helped Karvy achieving a leadership position in its field when it handled largest number of corporate and retail that proved to be a sound business synergy.

Today, Karvy has access to millions of Indian shareholders, besides companies, banks, financial institutions and regulatory agencies. Over the past one and half decades, Karvy has evolved as a veritable link between industry, finance and people.

In January 1998, Karvy became first Depository Participant in Andhra Pradesh. An ISO 9002 Company, Karvy’s commitment to quality and retail reach has made it an Integrated Financial Services Company.

Today, company has 230 branch offices in 164 cities all over the India. The company adds 5 new offices every month to the company’s ever growing national network in every nook and corner of the country. The company service over 16 million individual investors, 180 corporate and handle corporate disbursements that exceed Rs.2500 Crores.

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WHERE KARVY STAND IN THE MARKET?

KARVY is a legendary name in financial services, Karvy’s credit is defined by its mission to succeed, passion for professionalism, excellent work ethics and customer centric values.

Today KARVY is well known as a premier financial services enterprise, offering a broad spectrum of customized services to its clients, both corporate and retail. Services that KARVY constantly upgrade and improve are because of company’s skill in leveraging technology. Being one of the most techno-savvy organizations around helps company to deliver even more cost effective financial solutions in the shortest possible time.

What bears ample testimony to Karvy’s success is the faith reposed in company by valued investors and customers, all across the country. Indeed, with Karvy’s wide network touching every corner of the country, even the most remote investor can easily access Karvy’s services and benefit from company’s expert advice.

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KARVY GROUP

Karvy Consultants Limited

Karvy Securities Limited

Karvy Investor Services Limited 

Karvy Stock broking Limited 

Karvy Computer Shares Pvt. Ltd. 

Board of Directors

Karvy Consultants Limited 

Parthasarathy C

Yugandhar M

Ramakrishna M S

Prasad V Potluri

Robert Gibson

Sanjay Kumar Dhir

R Shyamsunder

[Table1: BODs of Karvy Consultants Limited]

Karvy Investor Services Limited 

Parthasarathy C

Yugandhar M

Ramakrishna M S

[Table2: BODs of Karvy Investor Services Limited]

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Karvy Securities Limited 

Parthasarathy C

Yugandhar M

Ramakrishna M S

Ajay Kumar K

William Samuel

Nicholas Tully

[Table3: BODs of Karvy Securities Limited]

Karvy Stock Broking Limited 

Parthasarathy C 

Yugandhar  M 

Ramakrishna M S

Ajay Kumar K

Kutumba Rao V

William Samuel

Nicholas Tully

[Table4: BODs of Karvy Stock Broking Limited]

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C Parthasarathy, Chairman & Managing Director Mr. C Parthasarathy, a leader in the financial services industry in India is responsible for building KARVY as one of India's truly integrated Financial Services Provider; he is a fellow member of the Institute of Company Secretaries of India, a Fellow Member of the Institute of Chartered Accountants of India and a graduate in law.As Chairman and Managing Director, he oversees the group's operations and renders vision and business direction.

His passion and vision for achieving leadership in the business made KARVY a leading financial intermediary ranking them as number one in the registrar, Share Transfer and IPO Distribution businesses. He also holds directorship in KARVY Securities Limited, KARVY Stock Broking Limited, KARVY Investor Services Limited, KARVY Computershare Private Limited, KARVY Commodities Broking Private Limited, EPR Pharmaceuticals Private Limited and Ocean Sparkles Limited.  

M Yugandhar, Managing Director

Mr. M Yugandhar, Managing Director, founder member of KARVY Consultants Limited, has varied experience in the field of financial services spanning over 20 years. He is a Fellow Member of the Institute of Chartered Accountants of India and was involved in the statutory and branch audit of banks for 26 years.

Mr. Yugandhar holds directorships in KARVY Securities Limited, KARVY Stock Broking Limited, KARVY Investor Services Limited, KARVY Computershare Private Limited, KARVY Commodities Broking Private Limited, Bizpro Technologies India Limited, Pokarna Limited, Ravindranath G E Medical Associates Private Limited, Everest Power Private Limited and Green Infrastructure Private Limited.  

M S Ramakrishna, Executive Director

Mr. M S Ramakrishna, Director, founder member of KARVY Consultants Limited is the orchestrator of technology initiatives such as the call center in the service of the customer.

Mr. Ramakrishna is a member of the Hyderabad Stock Exchange and is the director of KARVY Securities Limited, KARVY Stock Broking Limited, KARVY Investor Services Limited, KARVY Computershare Private Limited, KARVY Commodities Broking Private Limited, Nitya Labs Limited and SAB Nife Power Systems Limited. He has helped KARVY diversify into the field of medical transcription leveraging on

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the company's core competency of transaction processing. He has more than 20 years of experience in the financial services arena.

Achivements• Among the top 5 stock brokers in India (4% of NSE volumes) • India's No. 1 Registrar & Securities Transfer Agents • Among the top 3 Depository Participants • Largest Network of Branches & Business Associates • ISO 9002 certified operations by DNV• Among top 10 Investment bankers • Largest Distributor of Financial Products • Adjudged as one of the top 50 IT uses in India by MIS Asia • Full Fledged IT driven operations

 Quality Policy To achieve and retain leadership, Karvy shall aim for complete customer satisfaction, by combining its human and technological resources, to provide superior quality financial services. In the process, Karvy will strive to exceed Customer's expectations.  Quality Objectives   As per the Quality Policy,  Karvy will : 

Build in-house processes that will ensure transparent and harmonious relationships with its clients and investors to provide high quality of services.

Establish a partner relationship with its investor service agents and vendors that will help in keeping up its commitments to the customers.

Provide high quality of work life for all its employees and equip them with adequate knowledge & skills so as to respond to customer's needs.

Continue to uphold the values of honesty & integrity and strive to establish unparalleled standards in business ethics.

Use state-of-the art information technology in developing new and innovative financial products and services to meet the changing needs of investors and clients.

Strive to be a reliable source of value-added financial products and services and constantly guide the individuals and institutions in making a  judicious choice of same.

Strive to keep all stake-holders(shareholders, clients, investors, employees, suppliers and regulatory authorities) proud and satisfied. 

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Mission Statement of ‘Karvy’

An organization exists to accomplish something or achieve something. The mission statement indicates what an organization wants to achieve. The mission statement may be changed periodically to take advantage of new opportunities or respond to new market conditions.

Karvy’s mission statement is “To Bring Industry, Finance and People together.”

Karvy is work as intermediary between industry and people. Karvy work as investment advisor and helps people to invest their money same way Karvy helps industry in achieving finance from people by issuing shares, debentures, bonds, mutual funds, fixed deposits etc.

Company’s mission statement is clear and thoughtful which guide geographically dispersed employees to work independently yet collectively towards achieving the organization’s goals.

Vision of Karvy

Company’s vision is crystal clear and mind frame very directed. “To be pioneering financial services company. And continue to grow at a healthy pace, year after year, decade after decade.” Company’s foray into IT-enabled services and internet business has provided an opportunity to explore new frontiers and business solutions. To build a corporate that sets benchmarks for others to follow.

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Behind the Picture: What Customers matter for KARVY?

The underlying picture forming answer for above question is given below.

Market Brand CustomerPower Preference Value

RELATIONSHIPSOUR COMPETITIVE ADVANTAGE

[Fig.1 Competitive Advantage of Karvy]

Every year with this picture keeping in mind ‘Karvy accelerate with Recovery, Revival and Reappearance.’ Karvy has started 2004 on a strong note with the realization to signal some of the challenges it faced previous year. In a competitive market and a branded business, Karvy need to carefully manage itself to avoid down trading or brand shifts by consumers.

For Karvy, Jamnagar branch 2003 was truly exhilarating because of:

Successful implementation of a carefully crafted strategy.Excellence in execution.Immense learning enabling to set up a launch pad for

revitalizing itself.

Some competitive advantages are long lasting. These are intangible, difficult to replicate and thus more sustainable. Karvy has focused on some of these to gain competitive advantages. There are:

Winning culture and a desire to excel in everything Karvy do.Strong meaningful relationships with Customers along with Strategic Partners in which Karvy operate and above all, its own staff.

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Karvy value and carefully nurture relationships with customers. Karvy truly believe that more than technological prowess and business process innovations, it is the ‘focus on relationships’ which has been the corner stone of satisfying and successful presence in India over many years.

This has been possible with deep insight of consumer behavior as well as market demand drivers, understanding of the arena where to operate and quality execution – all thanks to a ‘greater team’ that makes this happen.

Karvy’s customers consider themselves part of Karvy family and share their experiences and dreams with other customers and thus Karvy becomes successful not only in relating customers but also gains new customers from satisfied prevailing customers.

Karvy want to create a strong emotional bond with new customers promoted by prevailing customers.

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Karvy Values:

IntegrityResponsibilityReliabilityUnityUnderstandingExcellenceConfidentiality

Karvy has adequate internal control systems and procedures commensurate with the size nature of its business. These system and procedures provide reasonable assurance of maintenance of proper accounting records, reliability of financial information, protection of resources and safeguarding of assets against unauthorized use.

Karvy Group Companies

KARVY CONSULTANTS LIMITED

As the flagship company of the Karvy Group, Karvy Consultants Limited

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has always remained at the helm of organizational affairs, pioneering business policies, work ethic and channels of progress. Having emerged as a leader in the registry business, the first of the businesses that we ventured into, we have now transferred this business into a joint venture with Computershare Limited of Australia, the world’s largest registrar. With the advent of depositories in the Indian capital market and the relationships that we have created in the registry business, we believe that we were best positioned to venture into this activity as a Depository Participant. We were one of the early entrants registered as Depository Participant with NSDL (National Securities Depository Limited), the first Depository in the country and then with CDSL (Central Depository Services Limited). Today, we service over 6 lakhs customer accounts in this business spread across over 250 cities/towns in India and are ranked amongst the largest Depository Participants in the country. With a growing secondary market presence, we have transferred this business to Karvy Stock Broking Limited (KSBL), our associate and a member of NSE, BSE and HSE.

KARVY STOCK BROKING LIMITED

Member - Natio nal 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 towards 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. It is an undisputed fact that the stock market is unpredictable and yet enjoys a high success rate as a wealth management and wealth accumulation option. The difference between unpredictability and a safety anchor in the market is provided by in-depth knowledge of market functioning and changing trends, planning with foresight and choosing one’s options with care. This is what we provide in our Stock Broking services. We offer services that are beyond just a medium for buying and selling stocks and shares. Instead we provide services which are multi dimensional and multi-focused in their scope. There are several advantages in utilizing our Stock Broking services, which are the reasons why it is one of the best in the country.

KARVY INVESTOR SERVICES LIMITED

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Recognized as a leading merchant banker in the country, we are registered with SEBI as a Category I merchant banker. This reputation was built by capitalizing on opportunities in corporate consolidations, mergers and acquisitions and corporate restructuring, which have earned us the reputation of a merchant banker. Raising resources for corporate or Government Undertaking successfully over the past two decades have given us the confidence to renew our focus in this sector. Our quality professional team and our work-oriented dedication have propelled us to offer value-added corporate financial services and act as a professional navigator for long term growth of our clients, who include leading corporates, State Governments, foreign institutional investors, public and private sector companies and banks, in Indian and global markets. We have also emerged as a trailblazer in the arena of relationships, both at the customer and trade levels because of our unshakable integrity, seamless service and innovative solutions that are tuned to meet varied needs. Our team of committed industry specialists, having extensive experience in capital markets, further nurtures this relationship. Our financial advice and assistance in restructuring, divestitures, acquisitions, de-mergers, spin-offs, joint ventures, privatization and takeover defense mechanisms have elevated our relationship with the client to one based on unshakable trust and confidence.

KARVY Computershare Private Limited

We have traversed wide spaces to tie up with the world’s largest transfer agent, the leading Australian company, Computer share Limited. The company that services more than 75 million shareholders across 7000 corporate clients and makes its presence felt in over 12 countries across 5 continents has entered into a 50-50 joint venture with us. With our management team completely transferred to this new entity, we will aim to enrich the financial services industry than before. The future holds new arenas of client servicing and contemporary and relevant technologies as we are geared to deliver better value and foster bigger investments in the business. The worldwide network of Computer share will hold us in good stead as we expect to adopt international standards in addition to leveraging the best of technologies from around the world.Excellence has to be the order of the day when two companies with such similar ideologies of growth, vision and competence, get together.

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KARVY GLOBAL SERVICES LIMITED

The specialist Business Process Outsourcing unit of the Karvy Group. The legacy of expertise and experience in financial services of the Karvy Group serves us well as we enter the global arena with the confidence of being able to deliver and deliver well. Here we offer several delivery models on the understanding that business needs are unique and therefore only a customized service could possibly fit the bill. Our service matrix has permutations and combinations that create several options to choose from. Be it in re-engineering and managing processes or delivering new efficiencies, our service meets up to the most stringent of international standards. Our outsourcing models are designed for the global customer and are backed by sound corporate and operations philosophies, and domain expertise. Providing productivity improvements, operational cost control, cost savings, improved accountability and a whole gamut of other advantages. We operate in the core market segments that have emerging requirements for specialized services. Our wide vertical market coverage includes Banking, Financial and Insurance Services (BFIS), Retail and Merchandising, Leisure and Entertainment, Energy and Utility and Healthcare.

Karvy Comtrade Limited

At Karvy Commodities, we are focused on taking commodities trading to new dimensions of reliability and profitability. We have made commodities trading, an essentially age-old practice, into a sophisticated and scientific investment option.Here we enable trade in all goods and products of agricultural and mineral origin that include lucrative commodities like gold and silver and popular items like oil, pulses and cotton through a well-systematized trading platform. Our technological and infrastructural strengths and especially our street-smart skills make us an ideal broker. Our service matrix is holistic with a gamut of advantages, the first and foremost being our legacy of human resources, technology and infrastructure that comes from being part of the Karvy Group.Our wide national network, spanning the length and breadth of India, further supports these advantages. Regular trading workshops and seminars are conducted to hone trading strategies to perfection. Every move made is a

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calculated one, based on reliable research that is converted into valuable information through daily, weekly and monthly newsletters, calls and intraday alerts. Further, personalized service is provided here by a dedicated team committed to giving hassle-free service while the brokerage rates offered are extremely competitive

Karvy Insurance Broking Limited

At Karvy Insurance Broking Limited., we provide both life and non-life insurance products to retail individuals, high net-worth clients and corporates. With the opening up of the insurance sector and with a large number of private players in the business, we are in a position to provide tailor made policies for different segments of customers. In our journey to emerge as a personal finance advisor, we will be better positioned to leverage our relationships with the product providers and place the requirements of our customers appropriately with the product providers. With Indian markets seeing a sea change, both in terms of investment pattern and attitude of investors, insurance is no more seen as only a tax saving product but also as an investment product. By setting up a separate entity, we would be positioned to provide the best of the products available in this business to our customers. Our wide national network, spanning the length and breadth of India, further supports these advantages. Further, personalized service is provided here by a dedicated team committed in giving hassle-free service to the clients

KARVY REALTY&SERVICES(INDIA)Limited

KARVY Realty & Services (India) Limited (KRSIL) is engaged in the business of real estate and property services offering value added property services and offers individuals and establishments a myriad of options across investments, financing and advisory services in the realty sector.

KARVY Realty & Services (India) Limited …………………………………Take a Realty Byte !!!Promoted by the KARVY Group of companies, India’s largest integrated financial services company. KARVY Realty & Services India Limited carries forward its legacy 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 standards.

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KARVY Realty & Services (India) Limited welcomes you to take a reality check on realty options that you can be rest assured of and of course profit from.

Welcome to Karvy Stock Broking

KARVY Stock Broking Limited, one of the cornerstones of the KARVY edifice, flows freely towards attaining diverse goals of the customer through varied services. It creates 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. KARVY Stock Broking Limited is a member of: • National Stock Exchange (NSE) • Bombay Stock Exchange (BSE) • Hyderabad Stock Exchange (HSE)Member - National Stock Exchange (NSE) and The Bombay Stock Exchange (BSE). Karvy Stock Broking Limited, one of the cornerstones of the Karvy edifice, flows freely towards 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.

Stock Broking Services

It is an undisputed fact that the stock market is unpredictable and yet enjoys a high success rate as a wealth management and wealth accumulation option. The difference between unpredictability and a safety anchor in the market is provided by in-depth knowledge of market functioning and changing trends, planning with foresight and choosing one’s options with care. This is what we provide in our Stock Broking services. We offer services that are beyond just a medium for buying and selling stocks and shares. Instead we provide services which are multi dimensional and multi-focused in their scope. There are several advantages in utilizing our Stock Broking services, which are the reasons why it is one of the best in the country. We offer trading on a vast platform ; National Stock Exchange and Bombay Stock Exchange. More importantly, we make

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trading safe to the maximum possible extent, by accounting for several risk factors and planning accordingly. We are assisted in this task by our in-depth research, constant feedback and sound advisory facilities. Our 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 our customers, through daily reports delivered thrice daily ; The Pre-session Report, where market scenario for the day is predicted, The Mid-session Report, timed to arrive during lunch break , where the market forecast for the rest of the day is given and The Post-session Report, the final report for the day, where the market and the report itself is reviewed. To add to this repository of information, we publish a monthly magazine “Karvy ; The Finapolis”, which analyzes the latest stock market trends and takes a close look at the various investment options, and products available in the market, while a weekly report, called “ Karvy Bazaar Baatein”, keeps you more informed on the immediate trends in the stock market. In addition, our specific industry reports give comprehensive information on various industries. Besides this, we also offer special portfolio analysis packages that provide daily technical advice on scrips for successful portfolio management and provide customized advisory services to help you make the right financial moves that are specifically suited to your portfolio.Our Stock Broking services are widely networked across India, with the number of our trading terminals providing retail stock broking facilities. Our services have increasingly offered customer oriented convenience, which we provide to a spectrum of investors, high-networth or otherwise, with equal dedication and competence. But true to our spirit, this success is not our 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 we have ensured that the trust of our customers is our biggest returns. Factors such as our success in the Electronic custody business has helped build on our tradition of trust even more. Consequentially our retail client base expanded very fast.To empower the investor further we have made serious efforts to ensure that our research calls are disseminated systematically to all our stock broking clients through various delivery channels like email, chat, SMS, phone calls etc. Our foray into commodities broking has been path breaking and we are in the process of converting existing traders in commodities into the more organized mainstream of trading in commodity futures, both as a trading and risk hedging mechanism.

In the future, our focus will be on the emerging businesses and to meet this objective, we have enhanced our manpower and revitalized our knowledge base with enhances focus on Futures and Options as well as the commodities business.

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Depository Participants

The onset of the technology revolution in financial services Industry saw the emergence of Karvy as an electronic custodian registered with National Securities Depository Ltd (NSDL) and Central Securities Depository Ltd (CSDL) in 1998. Karvy set standards enabling further comfort to the investor by promoting paperless trading across the country and emerged as the top 3 Depository Participants in the country in terms of customer serviced. Offering a wide trading platform with a dual membership at both NSDL and CDSL, we are a powerful medium for trading and settlement of dematerialized shares. We have established live DPMs, Internet access to accounts and an easier transaction process in order to offer more convenience to individual and corporate investors. A team of professional and the latest technological expertise allocated exclusively to our demat division including technological enhancements like SPEED-e, make our response time quick and our delivery impeccable. A wide national network makes our efficiencies accessible to all.

Distribution of Financial Products

The paradigm shift from pure selling to knowledge based selling drives the business today. With our wide portfolio offerings, we occupy all segments in the retail financial services industry. A 1600 team of highly qualified and dedicated professionals drawn from the best of academic and professional backgrounds are committed to maintaining high levels of client service delivery. This has propelled us to a position among the top distributors for equity and debt issues with an estimated market share of 15% in terms of applications mobilized, besides being established as the leading procurer in all public issues. To further tap the immense growth potential in the capital markets we enhanced the scope of our retail brand, Karvy – the Finapolis , thereby providing planning and advisory services to the mass affluent. Here we understand the customer needs and lifestyle in the context of present earnings and provide adequate advisory services that will necessarily help in creating wealth. Judicious planning that is customized to meet the future needs of the customer deliver a service that is exemplary. The market-savvy and the ignorant investors, both find this service very satisfactory. The edge that we have over competition is our portfolio of offerings and our professional expertise. The investment planning for each customer is done with an unbiased attitude so that the service is truly customized.

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Our monthly magazine, Finapolis, provides up-dated market information on market trends, investment options, opinions etc. Thus empowering the investor to base every financial move on rational thought and prudent analysis and embark on the path to wealth creation.

Advisory Services

Under our retail brand ‘Karvy – the Finapolis', we deliver advisory services to a cross-section of customers. The service is backed by a team of dedicated and expert professionals with varied experience and background in handling investment portfolios. They are continually engaged in designing the right investment portfolio for each customer according to individual needs and budget considerations with a comprehensive support system that focuses on trading customers' portfolios and providing valuable inputs, monitoring and managing the portfolio through varied technological initiatives. This is made possible by the expertise we have gained in the business over the years. Another venture towards being investor-friendly is the circulation of a monthly magazine called ‘Karvy - the Finapolis'. Covering the latest of market news, trends, investment schemes and research-based opinions from experts in various financial fields.

Private Client Group

This specialized division was set up to cater to the high net worth individuals and institutional clients keeping in mind that they require a different kind of financial planning and management that will augment not just existing finances but their life-style as well. Here we follow a hard-nosed business approach with the soft touch of dedicated customer care and personalized attention. For this purpose we offer a comprehensive and personalized service that encompasses planning and protection of finances, planning of business needs and retirement needs and a host of other services, all provided on a one-to-one basis. Our research reports have been widely appreciated by this segment. The delivery and support modules have been fine tuned by giving our clients access to online portfolio information, constant updates on their portfolios as well as value-added advice on portfolio churning, sector switches etc. The investment recommendations given by our research team in the cash market has enjoyed a high success rate.

BranchesState Total

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BranchesANDHRA PRADESH 37ASSAM 8BIHAR 10CHANDIGARH 1CHHATTISGARH 7GOA 2GUJARAT 26HARYANA 15HIMACHAL PRADESH3JAMMU & KASHMIR 1JHARKAND 7KARNATAKA 48KERALA 24MADHYA PRADESH 19MAHARASHTRA 27MANIPUR 1MEGHALAYA 1NEW DELHI 11ORISSA 13PUNJAB 11RAJASTHAN 10SIKKIM 1TAMIL NADU 57TRIPURA 1UNION TERRITORY 1UTTAR PRADESH 38UTTARANCHAL 5WEST BENGAL 26

Business AssociatesState Business

AssociatesANDHRA PRADESH 

53

BIHAR  2DELHI  7GUJARAT  17HARYANA  7HIMACHAL 1

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PRADESH JHARKHAND  1KARNATAKA  15KERALA  29MADHYA PRADESH 

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MAHARASTRA 21ORISSA  3PUNJAB(UT)  11RAJASTHAN  4TAMILNADU  8TRIPURA  3UTTAR PRADESH 

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WEST BENGAL 

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InsuranceProductsAviva • Life Shield Plan • Young Achiever PlanBajaj • Life Long Gain Plan • Invest Gain Plan • Cash Gain Plan • Health Care Plan • Swarna Vishranthi PlanBharati AXA • Future Confident II • Future Confident • Secure Confident Plan • Wealth Confident Plan Birla Sun Life • Life Companion-Money Back Plan • My Child Plan • Ladyguard Plan • Magnum Multiplier Plus

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Chola • Parivar of the Cholamandalam • Parivar - The complete family protection plan HDFC • Children's Plan • Single Premium Whole of Life Plan • Loan Cover Insurance Policy • The Money Back Plan • Endowment Assurance Plan • Unit Linked Pension Plus • Unit Linked Endowment Suvidha Plus ICICI Prudential • The Life Guard Plan • Cancer Care • Diabetes Care • Diabetes Care Plus ING Vysya • The Conquering Life Plan Kotak • Kotak Flexi Plan • Safe Investment Plan • Child Advantage Plan • HeadStart Assure Wealth • Money Back Plan

LIC • Jeevan Akshay • The Bima Gold Plan • Jeevan Nidhi Plan • Future Plus - ULPP • Jeevan Rekha Plan • Jeevan Bharathi • Jeevan Shree Policy • Jeevan Sathi Plan • Jeevan Anand Policy • Housing Loans • New Child Plan - Jeevan Anurag • Endowment Assurance Policy MNYL • Life Gain Plus • Life Maker • Child Money Back Plan • Whole Life Plan • The Life Gain Plus Policy • Magic of Whole Life

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• Easy Life Retirement Plan • Life Maker Pension Plan • Life Pay Money Back Plan • New Life Invest Met - Life • Bhavishya Plan Reliance Life Insurance • The Yuva Shree:Child Plan • Money Guarantee Plan SBI • The Setubandhan PlanTata AIG • The Nirvana Plus Plan • Health Protector Plan • Mahalife Life Insurance Plan • Life Plus • Invest Assure II

Terms and Conditions

TERMS AND CONDITIONS GOVERNING INTERNET BASED TRADINGPlease read the following instructions before signing the client agreement1. Client (first holder) should initial at the places marked with a #. ( Total of 10 initials along side markings and at the bottom of each page) 2. Only the first holder signs on the client agreement. ( 1signature) 3. The client agreement should be witnessed 4. Please read the general instructions mentioned in the instruction booklet

DESCRIPTION OF PARTIESThis agreement is entered into on ----/-----/------- between Karvy Stock Broking Limited, member broker # of the National Stock Exchange of India Limited, ordinarily carrying on business in sale and purchase of securities and is bearing SEBI Registration Number INB 230770138 and carrying on such business in the name and style of Karvy Stock Broking Limited from its registered office at 529, Road No.4, Banjara Hills Hyderabad 500 034, Andhra Pradesh, India (hereinafter referred to as the “member broker”, which expression shall unless repugnant to the context or meaning thereof, be deemed to mean and include its legal successors and permitted assigns)------First Holder’s Name------- an individual s/o -----Father’s / Husband’s Name---------- residing at # Address-------------- intending to transact in securities using the services of the member broker, through the online trading terminal of

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the said member broker (hereinafter referred to as “the client” which expression shall, unless repugnant to the context or meaning thereof, be deemed to mean and include its legal successors and permitted assigns)WHEREAS:

1. A. The member broker is a member of National Stock Exchange of India Limited (hereinafter referred to as “the exchange”) and holds a certificate of registration granted under Rule 4 of the Securities and exchange Board of India (Stock Brokers and Stock Sub-Brokers) Rules and Regulations, 1992 ; AND

2. B. The member broker offers online trading services to the client, subject to the terms of the present agreement and the SEBI guidelines in this regard.

3. C. The member broker and the client are required to enter into an agreement laying down the scope of their authority/ responsibility, in relation to the transactions in securities using the online trading facilities that the member broker makes available to them

4. D. The client is desirous of investing/ trading in securities admitted for dealing on the National Stock Exchange as defined by the bye-law of the said Exchange through online trading services by the member broker.

5. E. The member broker is satisfied and shall continuously satisfy themselves of the genuineness and financial soundness of the client and investment objectives relevant to the services to be provided.

6. F. The client is satisfied with the capability of the member broker to deal in securities on behalf of them and the client shall continue to satisfy themselves of the same before executing orders through the online trading facilities of such member broker.

7. G. The member broker has taken steps and shall take steps to make the client aware of the precise nature of the member broker’s liability for business to be conducted, including any limitations on that liability and the capacity in which it acts.

NOW IT IS AGREED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS:1. INTERPRETATION OF RECITALS The recitals form an integral part of this agreement.

1. DEFINITIONS 1. 2.1 For the purposes of this agreement (a) “Client” means and includes any individual, who transacts in securities through the auspices of the member broker herein named as such, and seeks to transact such business in securities through the use of E Trading facilities of the said member broker.

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(b) “Depository” refers to the National Securities Depository Limited, Mumbai. (NSDL) (c) “Online Trading” means carrying on the business of stock broking using electronic systems as Order Routing mechanisms to forward orders to the electronic system of the Stock Exchange. (d) “Exchange” refers to the National Stock Exchange of India Limited. (NSE) (e) “Member Broker” is Karvy Stock Broking Limited, a stock broker registered as a Stock Broker in terms of the SEBI (Stock Brokers and Sub-Brokers) Rules and Regulations, 1992 and are registered as Stock Brokers with SEBI in terms of the said rules and regulations.1. (f) “Trading Account” shall mean a rupee account opened by the client with the member broker, which is linked to the online trading facility through the web-site. (g) “Depository Participant” or “Designated Depository Participant” means Karvy Depository Participant or any other depository participant as may be specially designated as a Depository Participant by Karvy Stock Broking Limited, respectively. (h) “Bank” or “Designated Bank” means any bank as may be notified from time to time on the website, with whom the member broker has made arrangement in respect of the Online Trading Services to be provided to the clients in terms of the presents. (i) “Bank Account” or “Designated Bank Account” means an account opened, maintained and operated by the clients with a bank in terms of and pursuant to the requirements mentioned in the agreement. (j) “Demat Account” or “Designated Demat Account” means an account maintained in terms of the Regulation 42 of the SEBI (Depositories and Participants) Regulations, 1996 by Karvy Depository Participant in its capacity as a Depository Participant or any other Depository Participant as may be specified by Karvy Stock Broking Limited. (k) “Margin Trading” refers to trading in securities by paying an advance amount as margin to the member broker in cash and ‘ or as securities, in the following events: (i) Purchase of securities of a value in excess of the money with the purchaser, in the Trading Account, at the time when the order is placed on the website.1. (ii) Sale of securities in excess of the securities available in the demat account of the seller on the datewhen the order is placed on the website. (l) “Pay-in Date” means the day on which the clearing house of the stock exchange receives in the securities and monies due from the members pursuant to their transactions in securities, over the period of the settlement cycle of the Exchange. (m) “Pay-out Date” means the day on which the clearing house of the stock exchange pays out securities and monies due to members pursuant to their transactions in securities, over the period of the settlement cycle of the Exchange.

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(n) “Terms and Conditions” means the information available on the website under the head “Terms and Conditions” and includes but is not limited to any information available on clicking on any hyperlink to the section named “terms and Conditions” on the said website. (o) “Website” means the website located at URL http://www.karvy.com 2.2 All words and terms not defined in this agreement or on the website mentioned above shall take on the same meanings as may be attributed in terms of the SEBI / Exchange Guidelines, Rules and regulations.

1. 3. REPRESENTATIONS AND WARRANTIES 3.1 The clients hereby warrant that they are capable of executing

the present agreement and that the terms of the presents are not in contravention of any rights of any party with whom such client has any agreements any time prior to the execution of this Agreement.

3.2 The clients warrant that they have, maintain and operate a valid account with a designated bank. The clients state that they have opened a valid and subsisting Demat Account with a designated depository participant.

3.3 The clients agree to provide and continue to provide all details about themselves as may be required by the member broker including but not restricted to PAN Number, and state that all details and facts represented to the member broker are true.

3.4 The member broker states that they have complied with all statutory and regulatory requirements to offer the Online Trading Services through the website www.karvy.com.

3.5 The clients warrant that all or any securities deposited by them with the member broker in respect of margin trading requirements or otherwise, are owned by them and that the title thereof is clear and free of encumbrances.

2. 4. REGISTRATION AND ACCOUNT OPENING 4.1 The member broker shall, after registration, permit the registered user,

a trading password which enables him/her /them to avail of the facilities of Online Trading through the said website. All terms regarding the use and modification of such password shall be governed by information on the website. The clients are aware that authentication technologies and strict security measures are required for the Internet trading through order routed system and undertake to ensure that the password of the client and /or of their authorized representative are not revealed to any third party. The clients also agree to indemnify the member broker from any loss, injury, claim or

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any action instituted against the member arising from the misuse of the password by any party.

4.2 The services on the website shall be available to the reregistered user subject to the terms and conditions mentioned thereof.

4.3 The clients shall furnish a duly filled application form to the member broker indicating their intention to transact in securities using the Online Trading facilities on the website, in the format supplied by the member broker.

4.4 The clients shall provide to the member broker, a power of attorney authorizing the member broker to debit/credit/block/create lien/pledge clients depository accounts through their authorized personnel, to the extent of the transaction conducted by the said clients any due and payable to the member broker.

4.5 The clients shall authorize the member broker to debit/credit or block his bank account in the manner as per the procedure laid down in the terms and conditions and as per practices followed by the bank in this regard. The clients also authorize the member broker to create lien on the amount lying in their bank account in the manner specified in the terms and conditions.

4.6 The member broker, after satisfying themselves that the pre-requisites have been met by the clients, may register the clients as a registered user of the website and the Online Trading facilities may be made available to the clients.

4.7 The member broker may. Open one or more accounts in the name of the registered user in the books of the member broker.

4.8 The clients agrees that all the orders placed by them for securities through the website shall be within the parameters defined and mentioned in the terms and conditions.

5. TRADING5.1 TRADING ACCOUNTS

1. The clients agree to open a trading account with the member broker. 2. The clients agree that the member broker may require the clients at

any time during the subsistence of the presents, to open one or more trading accounts. The clients agrees that the debit/credit for all the transactions may be effected in this/these accounts, or between such accounts, in the manner deemed fit by the member broker.

3. The Clients agree that they shall place orders for the purchase of securities in respect of delivery accounts where the securities to be purchased are of a value that shall not, in aggregate exceed teh advance paid by the clients into such trading account or the amount in the bank account and such monies shall be blocked in favor of the member broker by the bank, or the securities in the demat account shall be blocked in favor of the member broker, as the case may be.

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4. The clients agree that they shall place orders for the purchase of securities in respect of margin trading, they shall be bound by the rules in this regard that are made applicable to them by mention in the terms and conditions on the web-site and as modified from time to time.

5. The clients agree that they shall be required to make such margin payments as are payable, as per the time schedule prescribed by the member broker by mention on the terms and conditions, from time to time. Such margin payments, if any, shall be payable in cash or securities as specified by the member broker in the terms and conditions or any section of the web-site and modified from time to time. Provided that the securities, if any, accepted as margins, shall be valued by the member broker as per the terms and conditions on the web-site.

6. The Client authorizes member broker to pledge these securities with exchange to meet margin/capital adequacy requirement of member broker. He further authorizes the member broker to sell these securities to recover any dues payable by him to member broker.

7. The clients agree that all payments due to the member broker will be made within the specified time and in the event of any delay, the member broker may refuse, at their discretion, to carry out transactions on behalf of the clients. The clients agree that alternatively, the member broker may, at their sole discretion, square off such transactions and the costs/losses if any, thereof shall be borne solely and completely by the clients.

8. The clients agree, that without prejudice to any other remedy or right prescribed in the presents, the member broker may charge daily interest at the rate of 2% per month for any delay in the payment charges, margin or any other sum due to the member as may be applicable.

5.2 BANK ACCOUNT1. The clients agree that the member broker may, at any time during the

subsistence of any arrangement relating to the subject matter of the presents, require the clients to open one or more accounts with a designated bank. The clients agree that the debit/credit for all the transactions may be effected in this/these accounts.

2. The clients agrees that member broker shall have the right, at any time during the subsistence of this agreement, to give any instructions to the banks with whom they have affiliations or any other arrangement, in respect of the account of the clients maintained with such bank. The clients agree that they shall have no cause of action in respect of any instruction that may be given to the bank in respect of their accounts maintained with such bank in pursuance of the presents.

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3. The clients agree that the member broker may, without assigning any reason thereof, and without issuing any notice of the same to the clients, reveal information available with the member broker in the course of the arrangement with the clients, to the bank with whom such clients maintain bank accounts pursuant to the presents, and the clients shall have no remedy therefrom.

4. The clients shall agree that in the event that the designated bank terminates the agreement with the clients in respect of the bank account maintained by the clients with such designated bank, for any reason or informs the member broker of any misdemeanor or transgression by the clients in the operation of the account or in any other circumstance resulting in the closure or in operation of the said bank account with the designated bank, the member broker may, at their discretion terminate services to the clients and the clients shall have no remedy therefrom.

5. Notwithstanding anything contained in any other agreement or arrangement, if any, between the parties hereto, the clients hereby authorize the member broker to release all payments due to them from the trading account maintained with the member broker, against specific request in that behalf made in the manner and following the procedure laid down in the terms and conditions. For the purposes of this clause, any request made through or on the web-site shall be sufficient for the member broker to execute an instruction.

5.3 DEMAT ACCOUNT1. The clients agree to open, maintain and operate a valid demat

account with the designated depository participant. 2. The clients agree that the member broker may require the clients, at

any time during the subsistence of any arrangement relating to the subject matter of the presents, to open one or more demat accounts. The clients agree that the debit/credit for all the transactions are to be effected in this/these accounts.

5.4 ORDERS1. The clients agree that all the orders placed through the web-site shall

be forwarded by the system to the National Stock Exchange Limited, as may be applicable, in respect of the arrangement between the parties.

2. The clients agree that if, any circumstance or for any reason, the market closes before the acceptance of the Order by the Exchange, the Order may be rejected. The clients agree further, that the member broker may reject Orders if the same are rejected by the Stock Exchange for any reason. In case of rejection of an order due

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to rejection by the Exchange, the clients agree that the order shall remain declined and shall not be reprocessed in any event.

3. The member broker may, at their sole discretion, reject any order placed on the web-site due to any reason, including but not limited to the non-availability of funds in the trading account of the clients, non-availability of securities in the Demat account of the clients with a designated depository participant, insufficiency of margin amount if the clients opts for margin trading, suspension of scrip-specific trading activities by or on an Exchange and the applicability of circuit breaker to a scrip in which orders are placed through the web-site.

4. The clients are aware that the member broker has provided on the web-site, a facility for reconfirmation of orders, which are larger that those specified by the member broker's risk management, and is also aware that the member broker has the discretion to reject the execution of such orders based on such risk perception.

5. The clients agree further that the member broker shall have the right to reject any order placed by the clients for any reason and at any time without notice to the clients. Provided that the order placed by the clients can only be rejected by the member broker in the event of impossibility, or pursuant to any of the terms mentioned in this Agreement, circulars, rules, regulations, notifications, Bye-laws or legislation of any regulatory authority, or pursuant to any terms/arrangement between the clients and the member broker or the clients and the depository participant, whether such arrangement is executed prior to or during the subsistence of this Agreement.

6. The clients agree that, if the order is not accepted on the web-site for any reason, the member broker shall have the right to treat the order as having lapsed.

7. The clients agree that the member broker shall not be liable or responsible for non-execution of orders placed through the web-site due to the failure of any system or link or due to any other reason whatsoever.

8. The member broker, may at their sole discretion permit clients to use the web-site for the routing of their orders in respect of securities, irrespective of the amount in the balance of the account of the clients.

9. The clients agree to abide with and be bound by all the Rules and Circulars that the member broker may issue from time to time, and all rules, regulations and bye-laws of the Exchange as are in force pertaining to the transactions on their behalf carried out by the member broker and the orders place by them on the web-site.

10. The member broker may inform the clients of the acceptance or rejection of the order placed by the clients through the web-site, and the reason therefor within the twenty four hours of the placing of such order through the electronic mode at the e-mail id provided by the clients while registering for the service on the web-site or as modified thereafter.

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11. The systems used by the member broker for providing Online Trading services are generally capable of assessing the risk of the clients as soon as the order comes in.

12. Any and all instructions issued by an authorized representative of the clients shall be binding on the clients in accordance with the letter authorizing the said representative to deal on behalf of the clients. All authentication of the authority of a client to instruct the member broker to deal on behalf the client shall be determined by the terms in this regard mentioned on the web-site.

5.5 CLEARING AND SETTLEMENT1. The Exchange may cancel a trade suo motu without assigning

any reason thereof. In the event of such cancellation the member broker shall be entitled to cancel the relative contract or contracts, if any, with the clients.

2. The member broker may directly credit the demat account of the clients with the designated depository participant for the purchase of the securities by the clients within forty eight hours of the receipt of the securities from the exchange on the pay-out day. Provided that if the order placed by the clients through the web-site is for securities, which are in the no-delivery period, such securities shall be credited to the trading account of the clients only at the time of settlement of trades, as per the schedule of the exchange. However,

(a) If any sum is due from the clients the member broker may withhold the credit of securities to the said Demat account of the clients with the designated depository participant.

(b) Delivery arising from an order placed from the web-site in respect of a margin trading account, may not be credited to the demat account of the clients but will be disposed of in a manner prescribed in the terms and conditions.

3. Any sale delivery not made to the member broker at the time of trade must be made at least forty-eight hours prior to the pay-out date in respect of the settlement in which such purchase is made. Losses, if any, that may accrue in the event of a default in completing the delivery on the Exchange by the member broker resultant of a delay in the delivery by the clients, shall be borne solely and completely by the clients. Losses for the purposes of this clause shall include auction debts, if any incurred as a result of non-delivery of securities on the settlement date on the exchange.

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5.6 DEFAULT AND CONSEQUENCES THEREOF1. The clients agree that they shall be deemed to have defaulted terms

of this agreement in circumstances including but not restricted to the following: (a) Any delay in payment of margins, charges or delivery in respect of this

agreement for transactions executed on behalf of the clients; (b) Any contravention of the terms contained in the presents; (c) Any misrepresentation or false statement or omission, or misleading

information supplied by the clients to the member broker; 2. The member broker may terminate the services made available to

the clients at any time and without issuing any notice or assigning any reason thereof.

3. In the event of a default of this agreement by a clients, the member broker shall be entitled to any or all of the following courses of action:

a) Immediate termination of this agreement and provision of services in terms of this agreement.

b) Other remedies as may be available in terms of the law for the time being in force.

c) Arbitration in terms of this agreement. d) Charge of an amount that shall not exceed the actual losses incurred

by the member broker consequent to the default along with the interest at market rates. 5.7 LIEN

1. All the funds of the clients in the bank account shall be subject to lien for the discharge of any or all payments due to the member broker from the clients, or in respect of any other obligation that clients may have to the member broker.

2. All securities in the demat account opened in terms of this agreement with a designated depository participant, shall be subject to lien for the discharge of any or all payments due to the member broker from the clients or any other obligation that the clients may have to the member broker and may be held by the member broker as a security against default by the clients in respect of the services already availed of by the clients.

3. The enforcement of the lien aforementioned in clauses 5.7.1 and 5.7.2 shall be at the sole and complete discretion of the member broker and the member broker alone may decide the securities to be sold, if any.

4. The clients authorizes the member broker to block securities against pending order or pledge securities in favor of the member broker against any of the dues. Provided that requirement may be waived y the member broker, at their discretion, by suitable modification to the terms and conditions.

5.8 INVESTMENT ADVICE 1. The clients agree that the member broker shall not be required to

provide the clients with any form of legal, accounting or tax related advice. 2. The clients agree that none of the services available on the website

shall amount to investment advice on the part of the member broker.

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5.9 MISCELLANEOUS 1. The clients agree that all decisions with regard to the amount that

may be placed as margin, the exposure available to the clients as against the funds available in the bank account and the authorized trading limit shall be decided by the member broker at their sole discretion and no reasons thereof are required to be given to the clients.

2. The clients agree that that shall be bound by all or any changes or modifications that are made to this agreement by the member broker, at its sole and complete discretion.

3. The clients agree that a modification to the terms and conditions on the website shall amount to a valid modification of the presents.

4. The clients agree that the member broker may at any time terminate the services available on the website on the basis of which this agreement is drawn and such termination of services for any reason shall not be in contravention of the presents. In the event that such termination occurs the member broker shall not be required to issue any notice to the clients or assign any reasons thereafter.

5. The member broker shall issue contract notes in terms of the SEBI (Stock Brokers and Sub Brokers) Rules and regulations, 1992 within twenty four hours of the execution of the trade. Such contract note shall be dispatched by the member broker by courier or through any other mode specified in the terms and conditions mentioned on the website, at the address mentioned in this agreement or at any other address expressly informed to the member broker by the clients.

6. The clients agree that all the transactions executed pursuant to an order placed on the website shall be subject to the rules of the clearing house of the exchange and that all trades shall be settled through such clearing house.

7. The clients agree to be bound by the guidelines, including the rules pertaining to the adjustment of shortages in clients positions in securities transacted on behalf of such clients, or any other person by the member broker, wither through orders placed through the use of the Online Trading services of the member broker or otherwise as may be issued by the member broker from time to time.

5.10 MODIFICATIONS 1. All modifications to this Agreement shall be made solely at the

discretion of the member broker and shall be intimated to the clients by a suitable modification to the terms and conditions or other applicable section on the website.

2. The client agrees that a modification to the information in the terms and conditions section on the website or any other applicable section and a display of the modification for the duration of the applicability of such modification to the circumstances of the clients, shall be sufficient notice to the Clients, to take note of such modification.

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5.11 ASSIGNMENTS The client agrees that Karvy stock broking Limited may at any time during the subsistence of the presents without requirement of issuing any notice to the clients, assign, transfer or otherwise alienate, by executing an agreement or in any other manner, all or any of their rights and /or obligations in terms of this agreement to any person or entity including but not limited to their affiliates, associates or sister companies.

6. TERMS OF CONSIDERATION

6.1 COMMISSIONS AND BROKERAGE All commissions and charges leviable on transactions in securities pursuant to orders placed on the website shall be payable at rates mentioned on the website and as may be modified from time to time.

6.2 USER FEES The clients agree that the member broker may charge User Fees for the use of any other service including but not restricted to the Online Trading Services, at a rate mentioned on the website and as may be modified from time to time.

6.3 DEPOSITORY CHARGES The clients agree that the member broker may debit the demat account charges payable to the depository participant to the trading account of the clients maintained with the member broker.

6.4 OTHER CHARGES The member broker may charge any other relevant charge in the manner intimated on the website from time to time including but not limited to Trade Commission, Service Tax, Turnover Charges, Tax Expenses incurred, Stamp Duty, Margins etc. as applicable.

7. INDEMNITY7.1 The member broker shall be indemnified by the client in case of any

action initiated against the member broker by the party not privy to this contract, and it shall be the duty of the client to bear out of their funds, all costs, losses and expenses which any such member broker may incur or may become liable to pay, by reason of any event in the course of the use of the said services by the client.

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7.2 In the event of death or insolvency of the client or his otherwise becoming incapable of receiving and paying for or delivering or transferring securities which the client has ordered to be bought or sold, the member broker may close out the transaction of the client and the client or his legal representative shall be liable for any losses, costs and be entitled to any surplus which may result therefrom.

8. FORCE MAJEUREThe member broker shall not be responsible for delay or default in the performance of their obligations due to contingencies beyond their control, such as fire, flood, civil commotion, earthquake, war, strikes, failure of the system, failure of Internet links or government/regulatory actions.

9. TERM AND TERMINATION9.1 Both parties shall be entitled to terminate this agreement at

will and without giving any reasons to the other party but not without giving a notice in writing of not less than one month that shall be despatched to the addresses mentioned in this agreement. However, such cancellation or termination shall not have any effect on any transaction(s) executed prior to the date of such notice of termination and the rights and obligations in respect of such transactions shall continue to subsist in terms of this agreement, and/or the terms and conditions as may be prescribed.

9.2 This Agreement shall become effective on the date first written above, subject to Clause 8 above, and shall remain in full force until and unless terminated.

9.3 In the event of any Governmental action or action from any regulatory authorities debarring the member broker from carrying on business or rendering it impossible to transact the business of broking or online trading, this agreement shall stand terminated.

9.4 The rights and obligations of the Parties under this Agreement which by their nature survive the termination of this Agreement shall not be extinguished by the termination of this Agreement.

10. ARBITRATION10.1 If any dispute arises between the Parties hereto during the subsistence of this Agreement of thereafter, in connection with or related to the validity, interpretation, implementation or alleged breach of any provision of this Agreement, the dispute shall, as far as possible be settled with the help of the officials of the exchange and if no such settlement is possible the parties hereby agree to refer such dispute to arbitration in accordance with the rules, bye-laws and regulations of the said stock exchange. The member broker and client hereby agree that they shall co-operate with the exchange officials and provide

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all relevant documents in their possession so as to expedite the settlement through the arbitration process. 10.2 The member broker and the client hereby agree that they will assist and co-operate with each other in ensuring faster settlement of any arbitration proceedings arising out of the present agreement or from the provision of the online trading services by the member broker and will accept arbitration awards in respect thereof.

11. APPLICABILITY OF LAW The provisions of this agreement shall always be subject to Government notifications, any rules, regulations and guidelines issued by SEBI and the Stock Exchange rules, regulations and Bye-laws that may be in force from time to time.

12. JURISDICTIONAll trades, transactions and contracts are subject to the rules and regulations of the exchange and depository and shall be deemed to be and shall take effect as wholly made, entered into and be performed in the city of Hyderabad and the parties to such trade shall be deemed to have submitted to the jurisdiction of the Courts in Hyderabad for the purpose of giving effect to the provisions of the Rules and regulations of the exchange and the bye-laws and business rules of the depository.Client :_______________________________________________________ (First Holder Name)Signature : _______________________________________________________ WitnessBy :_______________________________________________________Signature :_______________________________________________________ Broker : KARVY STOCK BROKING LIMITED.By :Signature :Title : DIRECTORY/AUTHORISED SIGNATORYWitness :

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PROFILE OF BROKING HOUSE IN THE STOCK MARKET

US The Karvy group was formed in 1983 at Hyderabad, India. Karvy ranks among the top player in almost all the fields it operates. Karvy Computershare Limited is India’s largest Registrar and Transfer Agent with a client base of nearly 500 blue chip corporate, managing over 2 crore accounts. Karvy Stock Brokers Limited, member of National 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 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 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 mobilizer with over Rs. 5,000 crores

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under management. Karvy Realty Services, which started in 2006, has quickly established itself as a broker who adds value, in the realty sector. Karvy 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.

MEANS OF FINANCING

Financing a company through the sale of stock in a company is known as equity financing. Alternatively, debt financing (for example issuing bonds) can be done to avoid giving up shares of ownership of the company. Unofficial financing known as trade financing usually provides the major part of a company's working capital (day-to-day operational needs). Trade financing is provided by vendors and suppliers who sell their products to the company at short-term, unsecured credit terms, usually 30 days. Equity and debt financing are usually used for longer-term investment projects such as investments in a new factory or a new foreign market. Customer provided financing exists when a customer pays for services before they are delivered, e.g. subscriptions and insurance

MARKET SHARE ANALYSIS

Security Bond

Stock

Common stocks

Preferred stocks

Share

Mutual funds

Par value v s. Market value

Bullish v s. Bearish

OTHER BENEFITS OF INVESTING IN SHARES?

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Because they can make big money on it. Compared to your investments in fixed deposits in banks it makes more profits, but the bad news is that you are also expected to bear the losses, if any.

1) Possibility of high returns 2) Easy liquidity

3) Unbeatable tax benefits

4) Income from dividends

SO HOW DOES ONE BUY SHARES?

There are basically two ways in which you can invest in shares:

Purchase shares from the primary market (i.e. IPO's) Trade in the Secondary Market, i.e. Stock exchanges

WHO SELECTS THESE STOCKS?

They are selected by the Index committee.

Some of the criteria they follow include:

1) Market capitalization.2) Liquidity.

3) Continuity.

4) Industry representation.

5) Listed history

COMPUTATION OF STOCK INDEX:

A stock market may either be a price index or a wealth index. In India most of the indices are using wealth index for computation of stock market.

Company No. of shares

Market Price on 09/02/06

Market cap(Rs.)

Market Price on 18/02/06

Market cap(Rs.)

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TATA 10 20/- 200/- 30/- 300/-

INFOSYS 20 30/- 600/- 40/- 800/-

IBM 20 100/- 2000/- 150/- 3000/-

TOTAL MARKET CAP

2800/- 4100/-

Face value=Rs.10/-Base value=100/-

Index present value=(100*4100)/2800= 146.428

OTHER MARKET RUNNERS :-

KOTAK SECURITIES:

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Kotak securities ltd is India leading stock broking house with a market share of close to 9% as on 31 march 2007. kotak securities ltd has been the largest in IPO distribution.The company has a full fledged research division involved in macro economic studies sect oral research and company specific equity research combined with a strong and well networked sales force which helps deliver current and up to date market information and news

Kotak securities ltd is also a depository participant with national securities depository limited and central depository service limited .providing dual benefits services where in the investor can use the brokerage services of the company for executing the transactions and the depository service for settling them.

Kotak securities have 813 outlets servicing more than 315000 customers and a coverage of 277 cities. Kotak securities com the online division of kotak securities limited offers internet broking services and also online IPO and mutual fund investment A Kotak security limited manages assets around 2300 crores of assets under management. The portfolio management service provides top class service catering to the high end of the market. Portfolio management from kotak securities comes as an answer to those who would like to grow from exponentially on the crest of the stock market, with the backing of an expert.

Sharekhan, the retail broking arm of SSKI group and one of the largest stock broking house in the country has won the prestigious awaaz consumer vote awards 2005 for the most preferred stock broking brand in India, in the investment advisors category

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Share khan equity related services include trade execution on BSE,NSE derivatives commodities depository services online trading and investment advice ,.sharekhan online trading and investment site www.sharekhan.com was launched in 2000 . Sharekhan Bag round network includes over 250 centers across 123 cities in India and having around 120000 customers and equal number of demat customers.

Sharekhan won the award by vote of customer around the country, as part of India largest consumer study cover 7000 respondents 21 product and service across 21 major cities. the study initiated by awaaz India first dedicated consumer channel and member of the world wide CNBC network and ac Nielsen org marg was aimed at understanding the brand preference of the consumer and to decipher what are the most important loyalty criteria for the consumer in each vertical

In order to select the award recipient spontaneous responses rather than prompted responses were garnered with an intention to glean unbiased preferences.

The reason behind the preferences for brands were unveiled by examines the following:

Tangible features of product /service Softer, intangible features like imagery, equity driving preference Tactical measures such as promotional /pricing schemes

The India Infoline group, comprising the holding company, India Infoline Limited and its wholly-owned subsidiaries, straddle the entire financial services space with offerings ranging from Equity research, Equities and derivatives trading, Commodities trading, Portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits, GoI bonds and other small savings instruments to loan products and Investment banking. India Infoline also owns and manages the websites http://www.indiainfoline.com/and http://www.5paisa.com/

The company has a network of 758 business locations (branches and sub-brokers) spread across 346 cities and towns. It has more than 800,000 customers

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India Infoline Limited is listed on both the leading stock exchanges in India, viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of both the exchanges. It is engaged in the businesses of Equities broking, Wealth Advisory Services and Portfolio Management Services. It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE. It is registered with NSDL as well as CDSL as a depository participant, providing a one-stop solution for clients trading in the equities market. It has recently launched its Investment banking and Institutional Broking business.

Bonanza is a leading Financial Services & Brokerage House with acknowledged industry Leadership in execution and clearing services on Exchange Traded Derivatives and cash market products.

Key elements that place Bonanza amongst the leading Brokerage Houses and make it the preferred service provider for value based financial services are:

A Client-driven foundation and strategy committed to client-specific investment needs and objectives. Integrated and innovative use of Technology enabling clients to trade offline, online and Strategic tie-ups with latest technology partners to facilitate trading access and direct processing across more than 900 Branches spread over 310 cities . Client-focused philosophy backed by memberships of all principal Indian Stock and Commodity Exchanges makes Bonanza a preferred service provider in the Industry for value based services.  

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Emkay offers futures trading through "Emkay Corporate Services (P) Ltd.". We have membership with two of the major Commodity exchanges of the country.

Multi Commodity Exchange of India Ltd, Mumbai (MCX) National Commodity and Derivative Exchange, Mumbai (NCDEX)

Large numbers across the country participate in the futures market through Emkay's rapidly expanding online trading terminal network extending to even remote areas. Local, national and international agri-information is disseminated through the company's large branch network. Seminars, free in house literature and interactive site sessions raise awareness levels on the futures market. Consequently, large numbers of informed participants enter the trading process resulting in increased volumes and market efficiency.

Motilal Oswal Securities Ltd. was founded in 1987 as a small sub-broking unit, with just two people running the show. Focus on customer-first-attitude, ethical and transparent business practices, respect for professionalism, research-based value investing and implementation of cutting-edge technology has enabled us to blossom into an almost 2000 member team.

Today they are a well diversified financial services firm offering a range of financial products and services such as      Wealth Management     Broking & Distribution      Commodity Broking     Portfolio Management Services     Institutional Equities     Private Equity     Investment Banking Services and      Principal Strategies

They have a diversified client base that includes retail customers (including High Net worth Individuals), mutual funds, foreign institutional investors, financial institutions and corporate clients. They are headquartered in Mumbai and as of June 30, 2008, had a network spread over 450 cities and towns comprising 1,496 Business Locations operated by their Business Partners and them. As at June 30, 2008, they had 486,648 registered customers.

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Religare Enterprises Limited (REL), is one of the leading integrated financial services groups of India. REL’s businesses are broadly clubbed across three key verticals, the Retail, Institutional and Wealth spectrums, catering to a diverse and wide base of clients.

REL offers a multitude of investment options and a diverse bouquet of financial services and has a pan India reach in more than 1550 locations across more than 460 cities and towns.

As part of its recent initiatives, the group has also started expanding globally and has acquired London’s oldest brokerage & investment firm, Hichens, Harrison & Co. plc. Following this acquisition Religare now proposes to operate out of 10 countries. With a view to expand, diversify and introduce offerings benchmarked against global best practices, Religare has entered into joint ventures with the global major- Aegon for its Asset Management and Life Insurance businesses in India.

Religare’s wealth management subsidiary is now rechristened as Religare Macquarie Wealth Management Limited, following a joint venture with the Australia based financial services major, Macquarie Bank. Religare has also partnered with Vistaar Entertainment to launch India’s first Film Fund.

The vision is to build Religare as a globally trusted brand in the financial services domain and present it as the ‘Investment Gateway of India’. All employees of the group guided by an experienced and professional management team are committed to providing financial care, backed by the core values of diligence and transparency.

ABOUT INDIABULLS

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Indiabulls is India’s leading Financial Services and Real Estate company having over 640 branches all over India. Indiabulls serves the financial needs of more than 4,50,000 customers with its wide range of financial services and products from securities, derivatives trading, depositary services, research & advisory services, consumer secured & unsecured credit, loan against shares and mortgage & housing finance. With around 4000 Relationship Managers, Indiabulls helps its clients to satisfy their customized financial goals. Indiabulls through its group companies has entered Indian Real Estate business in 2005. It is currently evaluating several large-scale projects worth several hundred million dollars.

“Indiabulls Financial Services Ltd is listed on the National Stock Exchange, Bombay Stock Exchange and Luxembourg Stock Exchange. The market capitalization of Indiabulls is around USD 6,300 million (31st December, 2007). Consolidated net worth of the group is around USD 905 million (31st December, 2007). Indiabulls and its group companies have attracted more than USD 800 million of equity capital in Foreign Direct Investment (FDI) since March 2000. Some of the large shareholders of Indiabulls are the largest financial institutions of the world such as Fidelity Funds, Goldman Sachs, Merrill Lynch, Morgan Stanley and Farallon Capital.

Business of the company has grown in leaps and bounds since its inception. Revenue of the company grew at a CAGR of 159% from FY03 to FY07. During the same period, profits of the company grew at a CAGR of 184%.

Indiabulls became the first company to bring FDI in Indian Real Estate through a JV with Farallon Capital Management LLC, a respected US based investment firm. Indiabulls has demonstrated deep understanding and commitment to Indian Real Estate market by winning competitive bids for landmark properties in Mumbai and Delhi.”Indiabulls Financial Services Ltd

AnandRathi is a leading full service securities firm providing the entire gamut of financial services. The firm, founded in 1994 by Mr. AnandRathi, today has a pan

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India presence as well as an international presence through offices in Dubai and Bangkok. AR provides a breadth of financial and advisory services including wealth management, investment banking, corporate advisory, brokerage & distribution of equities, commodities, mutual funds and insurance, structured products - all of which are supported by powerful research teams. The firm's philosophy is entirely client centric, with a clear focus on providing long term value addition to clients, while maintaining the highest standards of excellence, ethics and professionalism. The entire firm activities are divided across distinct client groups: Individuals, Private Clients, Corporate and Institutions and was recently ranked by Asia Money 2006 poll amongst South Asia's top 5 wealth managers for the ultra-rich. In year 2007 Citigroup Venture Capital International joined the group as a financial partner

The Hem Group is one of the largest broking network in india. It provides trading platform in all the leading exchanges namely – BSE, NSE, MCX & NCDEX.

GROUP COMPANIES HEM SECURITIES LTD. - MEMBER (BSE,CDSL) & CATEGORY 1 MERCHANT BANKERHEM FINLEASE PVT. LTD. - MEMBER (NSE)HEM MULTICOMMODITIES PVT. LTD. - MEMBER (MCX, NCDEX)HEM FINANCIAL SERVICES LTD. - NBFC REGISTERED WITH RBI RAJMALA FINLEASE PVT. LTD. - MEMBER (BSE)

Achieving excellence through superior services More than 28 years of rich experience

One of the largest broking network in the country covering 16 states with more

than 325 outlets

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More than 28 years of rich experience

One of the largest broking network in the country covering 16 states with more

than 325 outlets

Leading IPO and MF Distributor Pan-India

One of the Biggest Depository Participant with CDSL

Dedicated In-house Research Department

Robust & Hi-tech Trading Platform

Ethical & Transparent Business Practices

Featured in India’s Leading Equity Broking Houses 2008 by Dun & BradstreetAt Hem, what clients find best and advantageous is its warehouse of knowledge and research in equities and commodities, which of course adds to their amours in making investment decisions.

Real strength of HEM has been the faith and confidence of its clients in its organizational commitment and performance.

This faith and confidence, of numerous investors have been gained through transparent & highly reliable financial services over the last 27 years period.

Apart from faith and confidence of clients, its own sound net-worth has been the other important business assets at the HEM GROUP

The Angel Group of Companies was brought to life by Mr. Dinesh Thakkar. He

ventured into stock trading with an intention to raise capital for his own

independent enterprise. However, he recognised the opportunity offered by the

stock market to serve individual investors. Thus India’s first retail-focused stock-

broking house was established in 1987. Under his leadership, Angel became the

first broking house to embrace new technology for faster, more effective and

affordable services to retail investors.

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Mr. Thakkar is valued for his understanding of the economy and the stock-

market. The print and electronic media often seek his views on the market trend

as well as investment strategies.

Angel Broking's tryst with excellence in customer relations began in 1987. Today, Angel has emerged as one of the most respected Stock-Broking and Wealth Management Companies in India. With its unique retail-focused stock trading business model, Angel is committed to providing ‘Real Value for Money’ to all its clients.

The Angel Group is a member of the Bombay Stock Exchange (BSE), National Stock Exchange (NSE) and the two leading Commodity Exchanges in the country: NCDEX & MCX. Angel is also registered as a Depository Participant with CDSL.

Introduction of Organization

About Karvy Fortune:- Karvy Fortune a business opportunity for individuals in similar business from Karvy, it gives the opportunity to associate with “Karvy Family” as Franchisee, Remisser, or as an Independent Financial Advisors.

Karvy ranks among 5 stock brokers and Depositary Participants in India, with the enormous net work of over 500+ branches in 375 locations across India and overseas at Dubai, executes 150,000+ trades in NSE/BSE per day. Karvy has a top notch research team, advisory team, technology support team to serve it’s customers in 24/7 manner Associate with Karvy Fortune, a correlate opportunity from India’s foremost financial services provider, Karvy Stock Broking Ltd. It offers complete Karvy’s spectrum of financial products. Karvy fortune gives the opportunity to associate with “Karvy Family” as Franchisee, Remisser or as an Independent Financial Advisors please enroll your details.

Remisser of Karvy stock Broking Ltd.

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Karvy is an established stock broking firm with a strong customer base all over India, Karvy would like to reach out to more investors across the country, building a good distribution channel through Business Partner/Associates

Who is Business Partner/Associate?

Karvy is looking for like-minded people who wish to serve the customers with utmost reliability and fervor. As a Business Associate of Karvy, you will actively promote and market our services and products and keep our customers updated of the forthcoming new products and schemes. Karvy offers you to join our family as Franchisee/Business partners, Remisser or as an Independent Financial Advisor.

Karvy is associated with gamut of financial services and products. As we offer one stop investment solution, customers will have the option of deciding the right investment products of their choice.

KARVY FRANCHISEE PLANS :

BUSINESS ASSOCIATES

Revenue Sharing Structure:

Eligibility Criteria to enter into a Relationship as a BusinessAssociate:

1. An individual/ company/ partnership firm with good track record & reputation in financial services/other business/social circles with a good client base.

2. Sub-broker registration in SEBI/Exchanges through KSBL is compulsory with out which the remittance of accrued brokerage to franchisee will be kept on hold till registration is complete

3. Capacity to invest in setting up & maintaining the infrastructure & manpower required for carrying on the business as specified below at their own expense.

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a. Own or leased premises with requisite power supply and support facilities including LAN duly approved by KSBL in writing;

b. Interior work, furniture and Name Board conforming to the design, colours and

standards approved by KSBLc. Connectivity and communication facilities including leased line, ISDN

line, telephone line etc duly approved by KSBL.

d. In case the connectivity is through VSAT, the full cost of the VSAT including

setting up costs.e. Legally licensed operating system, database and other software

including back office software required for the operations at franchisee’s premises;f. Any other equipment or installations necessary for carrying on the

business without interruption.

4. The sub-broker/ employees of corporate/firm should hold valid NCFM certificates for Cash, F&O and ensure that NCFM certificate holder in person has to sit on trading terminals in whose name the terminal ID has been generated.Signature of Marketing Manager Signature of Business Associate

Franchisee Package Offered by KARVY

1. Product Support: Broking through BSE (Cash & F&O), NSE (Cash & F&O) ,DP services through NSDL, CDSL.

2. Sales Support: A Relationship Manager will be assigned to you for regular Research advice & Market Updates through Chat/Phone/Emails/Personal meetings.

3. Business Development: Product research, marketing & business development support on a regular basis to encourage knowledge based selling.

4. Back Office Support: Centralized Web based back office support through a dedicated Customer Service Executive assigned to you for routine queries through Chat-Phone- Emails. All stationary items bills, letter heads will be provided by KSBL and digital contract notes will be delivered to the franchisee’s id as per charges applicable.

5. Setup Support: Initial Glow sign flex material & Initial Visiting Cards will be provided by KSBL as per charges applicable.

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Commercial Terms & Conditions:-

1. Refundable Deposits for each outlet: Total INR 3, 00,000/- a. INR 3, 00,000/- with KSBL (Equities) 2. Charges Details: - Per Outlet Connectivity Charges Two options for Connectivity:-

a. V SAT: - VSAT One time Cost: - Rs. 110000/-(Including Site visit and Installation)Monthly Recurring Charges for Back office and Bandwidth: - Rs. 7500/- P.M.

OR

b. Broadband: - On broadband the Connectivity and Back office Charges will be Rs. 5000 per month for each outlet.

3. Revenue Sharing:

BROKERAGE SHARING RATIO (EQUITY)KSBL: 40%BUSINESS PARTNER: 60%

4. Minimum Brokerage to be charged to end clients: Segment Type Brokerage Rate Applicable Cash Segment (BSE & NSE) Trading 0.04% On Turnover Derivative Segment ( F&O & Commodities) Trading 0.04% On Turnover Cash Segment (BSE & NSE) Delivery 0.40%

Other Terms & Conditions:

1. Taxes: Securities Transaction Tax and other exchange charges & taxes as applicable will be levied.

2. Payment Terms:a. Payment delayed by 3 days will be charged @ 18% for both cash & F&O segment. However any further delay, the amount will be debited to SUBBROKER.

b. The Brokerage accrued will be returned to the SUBBROKER on a monthly basis subject to receipt of audit report.

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c. The franchisee has to ensure that for payments, the sub-broker code is stamped prominently in the box indicating Sub-broker / Sub-agent Codes on all application forms (for MF/IPO) that are used by them.

3. Exclusivity: As a Business Associate of KSBL you are required to sell all the products promoted by the company which includes IPO, MF, PMS, etc. exclusively for KSBL.4. Change in sub brokerage: The above rates of sub-brokerage payable to the sub broker are subject to modification from time to time to be mutually agreed between KSBL and the franchisee.

5. Certifications: Sub broker and his/her employees have to clear NCFM examination (Cash, AMFI & Derivatives) Signature of Marketing Manager Signature of Business Associate

REMISSERS

Eligibility Criteria to enter into a Relationship as a BusinessAssociate (Remisser):

1. An individual/ company/ partnership firm with good track record & reputation in financial services/other business/social circles with a good client base.

2. Sub-broker registration in SEBI/Exchanges through KSBL is compulsory with out which the remittance of accrued brokerage to remisser will be kept on hold till registration is complete.

3. The sub-broker/ employees of corporate/firm should hold valid NCFM certificates for Cash, F&O and Commodity segments and ensure that NCFM certificate holder in person has to sit on trading terminals in whose name the terminal ID has been generated.

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Business Partner Package Offered by KARVY

1. Product Support: Broking through BSE (Cash & F&O), NSE (Cash & F&O), DP services through NSDL, CDSL.

2. Sales Support: A Relationship Manager will be assigned to you for regular Research advice & Market Updates through Chat/Phone/Emails/Personal meetings.

3. Business Development: Product research, marketing & business development support on a regular basis to encourage knowledge based selling.

4. Back Office Support: Centralized Web based back office support through a dedicated Customer Service Executive assigned to you for routine queries through Chat-Phone- Emails. All stationary items bills, letter heads will be provided by KSBL and digital contract notes will be delivered to the remisser id as per charges applicable.

5. Setup Support: Initial Glow sign flex material & Initial Visiting Cards will be provided byKSBL as per charges applicable.

Commercial Terms & Conditions:-

1. Refundable Deposits : Total INR 50,000/- a. INR 50,000/- with KSBL (Equities)

2. Revenue Sharing:BROKERAGE SHARING RATIO (EQUITY)KSBL: 60%BUSINESS PARTNER: 40%

3. Minimum Brokerage to be charged to end clients: Segment Type Brokerage Rate Applicable Cash Segment (BSE & NSE) Trading 0.04% On Turnover Derivative Segment ( F&O & Commodities) Trading 0.04% On Turnover Cash Segment (BSE & NSE) Delivery 0.40%

Other Terms & Conditions:1. Taxes: Securities Transaction Tax and other exchange charges & taxes as applicable will be leived.

2. Payment Terms:

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a. Payment delayed by 3 days will be charged @ 18% for both cash & F&Osegment. However any further delay, the amount will be debited to SUBBROKER

b. The Brokerage accrued will be returned to the SUBBROKER on a monthly basis subject to receipt of audit report.

c. There will be no sharing of brokerage in proprietor/partner/directors trading account with Karvy.

3. Exclusivity: As a Business Associate of KSBL you are required to sell all the productspromoted by the company which includes IPO, MF, PMS, etc. exclusively for KSBL.

4. Change in sub brokerage: The above rates of sub-brokerage payable to the sub broker re subject to modification from time to time to be mutually agreed between KSBL and the Remissers.

5. Certifications: Sub broker and his/her employees have to clear NCFM examination Cash & Derivatives

TIN – FC

Eligibility Criteria to enter into a Relationship as TIN Facilitation Centre with Karvy Data Management Services Limited.

1. An individual/ company/ partnership firm with good track record & reputation in financial services/other business/social circles.

2. Capacity to invest in setting up & maintaining the infrastructure & manpower required for carrying on the business as specified below at their own expense.

a. Own or leased premises with requisite power supply and support facilities including LAN duly approved by KDMSL in writing. b. Interior work, furniture and Name Board conforming to the design, colours and standards approved by KDMSL c. Connectivity and communication facilities including leased line, ISDN line, telephone line etc duly approved by KDMSL d. Legally licensed operating system, database and other software required for the operations at second party’s premises.

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f. Any other equipment or installations necessary for carrying on the business without interruption.

Support given by Karvy Fortune to setup TIN Facilitation Centre

1. Product Support 2. Back Office Support 3. Setup Support: Initial Glow sign flex material & Initial Visiting Cards will be provided by KDMSL as per charges applicable.

2. Charges Details:-

A) One time registration cost INR 2,000/- (Indian Rupees Two thousand only) B) Monthly Recurring Charges for Back office and Bandwidth: - Rs. 500/- P.M. C) For additional User ID (Optional) Rs.500/- per Id /per month

RESEARCH METHODOLOGY AND LIMITATION

Title of Study:-

“Franchisee & Remiseship Development in Karvy”

Duration of Project:-

26-05-2009 to 04-07-2009

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Objective of the research project

To explore the franchisee of Karvy in Delhi region To comparatively learn the franchisee plans of Karvy. To find out the strengths of the Franchisees plan. To find out weaknesses of the Franchisees plan. To entice the other market existing franchisee to select Karvy plan. To make the people move aware about market. To suggest the possible amendment to the plan of Karvy.

Type of Research Plan

RESEARCH DESIGN

Problem is complex and real in nature, lot of efforts have undergone for the research by meeting various people and asking them about their experience .various people have undergone huge losses in the stock market lot of material has been collected from the internet.

The research methodology consisted following steps:

1. DEFINING THE OBJECTIVES:

The aim of this project as has already been mentioned was to “building new business associates and bringing potenital customers and giving guidance to the customers who are already being working in the market and moreover checking out the problem (if any) being faced by business associates.” For this our research contains two parts-

a. To sale the products we have to first generate database on the basis of marketing research.

b. Analysis of different schemes of share market.

2. DEVELOPING THE RESEARCH PLAN:

This step called for decision on the data sources, sampling plan and contact methods.

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DATA SOURCES

Data was collected from primary and secondary data. The various sources are:

i. PRIMARY DATA

This type of data does not exist; it is originated by primary sources like personal interaction or field back forms, questionnaires that act as tools for collecting data.

ii. SECONDARY DATA

This type of data already exists, and used to generate information as required. We collect the secondary data through Internet, books, journals and magazines of the company, various company broachers, talking with people.

RESEARCH APPROACH

The research approach adopted here was the survey method. But other approaches also used such as observation research.

3. COLLECTING THE INFORMATION

With respect to primary and secondary data, the information is collected. Primary data tells us present scenario of financial market. Secondary data means that to get the data from the internet, company magazines, talking with people and convince.

DATA COLLECTION:

Base on the above questionnaire data are collected by survey methods.

1. SAMPLING METHOD:

The sampling method, which is adopted, is Random Sampling.

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2. DATA ANALYSIS:

The Analysis of survey has been done on % basis.

DATA COLLECTION

PRIMARY DATA

The primary data to be selected was based upon the response of the respondents to the questionnaire designed. The questionnaire designed was given to us from our immediate boss... The questionnaire consists of closed ended questions.

A part of Questionnaire was targeted to know the personal details of the respondents. Another part comprised of the self-designed questionnaire and will consist of closed ended questions with every question having its own importance and meaning.

SECONDARY DATA

The secondary data was collected by referring through web sites, and the final data was analyzed systematically to achieve the desired result.

DATA ANALYSIS

For analyzing the data obtained after conducting the survey, percentage method was used. All the views and data obtained were also interpreted as clearly as possible.

STUDY

The present investigation is a descriptive and marketing type of study undertaken to estimate the comparative study of share market analysis. The present study

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identifies views of customers & analysis of share market along with the self-analysis.

SAMPLE SIZE

For the purpose of analysis a sample size of respondents was selected. The target group of the respondent was job holders and an earning person whatever his/her age may be. The sample size taken was 60.

SAMPLING METHOD

The sampling method chosen for the project was “Random Sampling”. This type of sampling is also known as chance sampling or probability sampling where each and every item in the population has an equal chance of inclusion in the sample and each one of the possible samples. This procedure gives each item an equal probability of being selected.

COMPARATIVE ANALYSIS AND INTERPRETATIONS

ANALYSIS OF MALES AND FEMALES SURVEYED:

BRIEF ANALYSIS

The diagram helped us in judging the number and percentage of males and females after conducting the survey; it was found that out of customers were males and was females. Thus, we came to know that 73% of the users were males and the remaining 27% were females.

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LIMITATION OF STUDY

1. lot of efforts have been undergone to improve the predication

techniques .like earlier there was only fundamental analysis being used but now

technical analysis has come into existence

2. Once the people who are involved in it. They play it like gambling and they

think that its same it is difficult to change their mindset.

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3. It’s difficult to make people aware about the market knowledge it is very

vast.

4. Last of technical thing are involved in it difficult for everyone to go through

it.

CONCLUSION :

FINDINGS :

Our findings during the training with Karvy Stock Broking Limited, Delhi

Company’s Plan was good on the following ground:

* Karvy is a top-ranked company listed with NSDL and CDSL, provide trading through both NSE & BSE.

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* Karvy is providing software to their prospective sub broker and Remissers.

* Cheque updating in 15 mins. And the credit limit up to 10 times.

* Good alternative plan (Remissers) to get a new connection with a renowned company.

* Bunch of services like: - 1) Product support 2) Back Office support 3) Set Up support 4) Sales support 5) Business Development

Recommendation and SUGGESTIONS:

Though the Karvy Stock Broking Limited have a very good ascribed plan with exclusive band of opportunities but as nothing is free from the hurdles therefore there are few shortcomings which I felt makes Karvy fail to achieve its target of activating new Franchisee in the Jaipur region these pitfalls are as follows :-

1) The Brokerage charges, 4 paisa and 40 paisa for intraday and delivery respectively, are quiet high.

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2) The initial investment for the sub broker ship (4 lakhs) is also high.

3) The percentage of sharing of brokerage which are Sub broker ship: 60:40(sub: kar) Remissers : 40:60(rem: kar)Should be negotiable up to some extent. Our suggestion (50:50) for Remissers and (70:30) for sub brokers hip.

4) The tentative norm regarding the location of the offices i.e. no other Franchisee will be their under the 3 km area of already existing Franchisee.

5)The bound for the prospective client regarding TIN FC that is those who are interested in taking TIN FC they must also take the equity as well.

QUESTIONAIRE

Sub Broker Main BrokerAddress

Contact No E-mail

1) Since how long have you been in stock industry? Office Space……

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2) Trading facility to end-clients: on-line / Off-line / Both

3) Do you require brand name to develop your business? Highly agreed /Agreed /Not required

4) What are the products you can offer to clients.

Equity / Commodity / MF / Life & Non-Life Insurance of all companies5) What Support you require from your broker to promote the business & what

are the key strengths of your broker?

a) ___________________________________________________________________

b) ___________________________________________________________________

6) What are the problems you are facing with present broker?

a) ___________________________________________________________________

b) ___________________________________________________________________

7) Do you require a regular & consistent source of new client acquisition & new database, which is the key of success of broking business?

8) Do you think IPO & PAN card processing can be a potential product for your earning & acquiring new database?

9) Do you require alternative & consistent earning source through the channel of TIN-FC of Income tax Dept. of Govt. of India?

10) Do you want more details about TIN Facilitation Center? PAN, TAN & E-TDS Processing)

YES/NO

Thank You

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BIBLIOGRAPHY:- Websites:

www.karvy.com www.indiacorporateadvisor.com www.dewb-vc.com www.amfiindia.com www.themanagementor.com www.nsdl.co.in www.wikipedia.com www.sharekhan.com

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www.religare.com www.indiabulls.com Indiainfoline.com

Books & newspaper:- Economic times Financial management (khan and jain) Capital market

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