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    DERIVATIVES MARKET- INDIA

    L.C 01695

    SHIVAMOGGA

    A Project Report On

    A STUDY ON THE DERIVATIVES MARKET IN INDIA

    Submitted By

    Mr. NIRANJAN KUMAR C V

    Reg. No. 510740335

    A Project Report Submitted in partial fulfillment of the requirement

    for the degree of Master of Business Administration of

    SIKKIM MANIPAL UNIVERSITY, INDIA.

    Syndicate House, Manipal 576 104

    1 | P a g eHCMIT, Shimoga

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    DERIVATIVES MARKET- INDIA

    L.C 01695

    SHIVAMOGGA

    A PROJECT REPORT ON

    DERIVATIVES MARKET IN INDIA

    Submitted By

    NIRANJAN KUMAR C V

    Reg. No. 510740335

    Internal guide: External guide:

    Mr. Kaleemulla Khan Branch Manager

    KARVY STOCK BROKING

    A Project Report Submitted in partial fulfillment of the requirement

    for the degree of Master of Business Administration of

    SIKKIM MANIPAL UNIVERSITY, INDIA

    Syndicate House, Manipal 576 104

    2 | P a g eHCMIT, Shimoga

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    DERIVATIVES MARKET- INDIA

    DECLARATION

    I here by declare that the project report entitled

    Derivatives Market In India has been prepared by me

    under the guidance of Mr. Kaleemulla Khan Dept of

    Management, Hoysala College, shivammoga.

    This project report has been submitted to SIKKIM

    MANIPAL UNIVERSITY in the partial fulfillment of

    requirement for the award of Degree of Master of

    Business Management Information Technology.

    I also declare that this report has not been submittedany other university for the award of any Degree or

    Diploma.

    Date:

    Place: Shivammoga

    Signature of the student

    (Mr. Niranjan Kumar C V)

    Reg. No.510819849

    3 | P a g eHCMIT, Shimoga

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    DERIVATIVES MARKET- INDIA

    CERTIFICATE

    The Project Report of

    NIRANJAN KUMAR C V

    Reg. No. 510740335

    Entitled

    A PROJECT REPORT ON

    DERIVATIVES MARKET IN INDIA

    with special reference to

    KARVY STOCK BROKING

    is approved and is acceptable in quality and form.

    Internal Examiner External Examiner

    4 | P a g eHCMIT, Shimoga

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    DERIVATIVES MARKET- INDIA

    BONAFIDE CERTIFICATE

    THISISTOCERTIFYTHATMR. NIRANJAN KUMAR C VISABONAFIDE

    STUDENT OF HOYSALA COLLEGE OF MANAGEMENT AND IT

    STUDIES, SHIVAMOGGA FOR THE ACADEMIC YEAR 2009 2010

    STUDYINGIN MBA (IT) COURSE.

    This project report entitled

    DERIVATIVES MARKET IN INDIA

    with special reference to KARVY STOCK BROKING is prepared by her in

    partial fulfillment of MBA(IT) Course.

    Date :

    5 | P a g eHCMIT, Shimoga

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    DERIVATIVES MARKET- INDIA

    Place :

    GUIDE CERTIFICATE

    This is to certify that the Project Report entitled A STUDY ON DRIVATIVES

    MARKET IN INDIA with special reference to KARVY STOCK BROKING,

    SHIVAMOGGA Submitted in partial fulfillment of the requirements for the degree of Masters

    of Business Administration of Sikkim Manipal University of Health, Medical and Technological

    Sciences.

    Mr.NIRANJAN KUMAR C V has worked under my supervision and guidance and that

    no part of this report has been submitted for the award of any other degree, Diploma,

    Fellowship or Other similar titles or prizes and that the work has not been published in any

    journal or Magazine.

    Reg. No: . 510740335 Certified

    6 | P a g eHCMIT, Shimoga

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    DERIVATIVES MARKET- INDIA

    (Mr.somsundram)

    Date: 03/12/2009

    TO WHOMSOEVER IT MAY CONCERN

    This is to certify that Mr. Niranjan Kumar C V Final Year student of Hoysala

    College of Management and IT Studies, Shivamoga has successfully completed

    the project report Derivatives Market In India from 21st April 2009 to 20th

    December, 2009.

    During the project he was found sincere and hardworking and it took him little

    time to understand the procedures and policies of the company.

    We wish him all the success in future endeavours.

    For Karvy Stock Broking

    Mr. Naveen Kumar

    Branch Manager

    7 | P a g eHCMIT, Shimoga

    Karvy Stock Brocking

    308, 15th

    Cross, 5th

    Phase, J. P.Nagar,

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    DERIVATIVES MARKET- INDIA

    ACKNOWLEDGEMENT

    I express my sincere thanks to SIKKIM MANIPAL UNIVERSITY for

    making a source of inspiration all along our management career.

    I express my sincere thanks to my guide Mr.SOMSUNDRAM, faculty

    Member, Hoysala College of Management & IT Studies, Shivamogga and

    external guide Mr. Naveen Kumar, Branch Manager, karvy stock broking for

    giving me their valuable guidance and timely support to complete this project

    successfully.

    I express my sincere thanks to our Principal Dr. D.M. BASAVARAJU

    for giving me permission to do this project report.

    Last but not least, I am thankful to my friends & faculties of HCMIT who

    helped me directly and indirectly in the completion of this project work. I also

    thank to all the family members who have helped me in many ways to complete

    this study successfully.

    Date :

    8 | P a g eHCMIT, Shimoga

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    DERIVATIVES MARKET- INDIA

    Place: Mr. Niranjan Kumar C V

    PART-A

    COMPANY PROFILE

    KARVY- Comtrade Limited

    It is a venture of the prestigious Karvy group. With well established presence in the

    multifarious facets of the modern financial services industry from stock broking to

    registry services, it is indeed a pleasure for them to make foray into the commodities

    derivatives market which opens yet another door for them to deliver their service to

    the beloved customers and the investor public at large.

    With the high quality infrastructure already in place and a committed Government

    providing continuous impetus, it is the responsibility of the company, the

    intermediaries to deliver these benefits at the door-steps of the esteemed customers.

    With the expertise in financial services, existence across the lengths and breadths of

    the country and an enviable technological edge, they are all set to bring the pleasure

    of investing in this burgeoning market, which they touch upon the lives of a vast

    majority of the population from the farmer to the corporate alike. They are confident

    that the commodity futures can be a good value addition to customer portfolio.

    The company provides investment, advisory and brokerage services in Indian

    Commodities Markets. And most importantly, they offer a wide reach through their

    branch network of over 225 branches located across 180 cities.

    As the flagship company of the Karvy Group, Karvy Consultants Limited 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 they ventured into, they have now

    transferred this business into a joint venture with Computershare Limited of

    Australia, the worlds largest registrar. With the advent of depositories in the Indiancapital market and the relationships that they have created in the registry business,

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    DERIVATIVES MARKET- INDIA

    they believe that they are best positioned to venture into this activity as a Depository

    Participant. They are 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, they

    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, they have transferred this

    business to Karvy Stock Broking Limited (KSBL), they are a associate and a

    member of NSE, BSE and HSE.

    KARVY Stock Broking Limited

    Member - National Stock Exchange (NSE), The Bombay Stock Exchange (BSE),

    and The Hyderabad Stock Exchange (HSE).

    Karvy Stock Broking Limited, one of the cornerstones of the Karvy edifice, flowsfreely 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 options with care. This is what they provide in their

    Stock Broking services.

    They offer services that are beyond just a medium for buying and selling stocks and

    shares. Instead they provide services which are multi dimensional and multi-focused

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    DERIVATIVES MARKET- INDIA

    in their scope. There are several advantages in utilizing their Stock Broking

    services, which are the reasons why it is one of the best in the country.

    KARVY - The Finapolis

    The paradigm shift from pure selling to knowledge based selling drives the business

    today. With their wide portfolio offerings, they 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 them to a position among the top

    distributors for equity and debt issues with an estimated market share of 15% in

    terms of applications mobilized, besides being established as the leading procurer in

    all public issues.

    To further tap the immense growth potential in the capital markets they enhanced

    the scope of their retail brand, Karvy the Finapolis , thereby providing planning

    and advisory services to the mass affluent. Here they 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 they have over competition is their portfolio of offerings

    and their professional expertise. The investment planning for each customer is done

    with an unbiased attitude so that the service is truly customized.

    Their 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.

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    DERIVATIVES MARKET- INDIA

    KARVY Investor Services Limited

    Recognized as a leading merchant banker in the country, they 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 them the reputation of a merchant banker. Raising

    resources for corporate or Government Undertaking successfully over the past two

    decades have given them the confidence to renew their focus in this sector.

    Their quality professional team and their work-oriented dedication have propelled

    them to offer value-added corporate financial services and act as a professional

    navigator for long term growth of their clients, who include leading corporates,

    State Governments, foreign institutional investors, public and private sector

    companies and banks, in Indian and global markets.

    They have also emerged as a trailblazer in the arena of relationships, both at the

    customer and trade levels because of their unshakable integrity, seamless service

    and innovative solutions that are tuned to meet varied needs. Their team of

    committed industry specialists, having extensive experience in capital markets,

    further nurtures this relationship.

    Their financial advice and assistance in restructuring, divestitures, acquisitions, de-

    mergers, spin-offs, joint ventures, privatization and takeover defense mechanisms

    have elevated their relationship with the client to one based on unshakable trust and

    confidence.

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    DERIVATIVES MARKET- INDIA

    KARVY Computershare Private Limited

    They have traversed wide spaces to tie up with the worlds largest transfer agent, the

    leading Australian company, Computershare 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 them.

    With their management team completely transferred to this new entity, they will aim

    to enrich the financial services industry than before. The future holds new arenas of

    client servicing and contemporary and relevant technologies as they are geared to

    deliver better value and foster bigger investments in the business. The worldwide

    network of Computer share will hold them in good stead as they 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 similarideologies of growth, vision and competence, get together.

    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 them well

    as they enter the global arena with the confidence of being able to deliver and

    deliver well.

    Here they offer several delivery models on the understanding that business needs

    are unique and therefore only a customized service could possibly fit the bill. Their

    service matrix has permutations and combinations that create several options to

    choose from.

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    DERIVATIVES MARKET- INDIA

    In re-engineering and managing processes or delivering new efficiencies, their

    service meets up to the most stringent of international standards. Their 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.

    They operate in the core market segments that have emerging requirements for

    specialized services. Their wide vertical market coverage includes Banking,

    Financial and Insurance Services (BFIS), Retail and Merchandising, Leisure and

    Entertainment, Energy and Utility and Healthcare.

    KARVY- Insurance Broking PVT. LTD

    At Karvy Insurance Broking Limited., they provide both life and non-life insurance

    products to retail individuals, hi...