karvy comtrade
RAHULJAIN1033
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Sep 20, 2018
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About This Presentation
commodity market
Slide Content
`
1 | P a g e
SUMMER TRAINING REPORT ON
STOCK AND COMMODITY MARKET OPERATIONS
For
KARVY COMMODITIES LIMITED
By
RAHUL JAIN
470
In Partial Fulfillment for the award of the degree
Post Graduate Diploma In Management
2017-19
Specialization: Finance and Marketing
1 | P a g e
SUMMER TRAINING REPORT ON
STOCK AND COMMODITY MARKET OPERATIONS
For
KARVY COMMODITIES LIMITED
By
RAHUL JAIN
470
In Partial Fulfillment for the award of the degree
Post Graduate Diploma In Management
2017-19
Specialization: Finance and Marketing
`
2 | P a g e
New Delhi Institute of Management
50 (B&C), 60, Tughlakabad Institutional Area, New Delhi-110062
E-mail :[email protected] Website : www.ndimdelhi.org
SUMMER TRAINING REPORT ON
STOCK AND COMMODITY MARKET OPERATIONS
For
KARVY COMMODITIES LIMITED
Under the supervision
of
Mr.Malay Hazra
(Compliance Offficer and Head Operations)
Submitted By- Submitted to-
Rahul Jain Prof.Ruchi Arora
470
2 | P a g e
New Delhi Institute of Management
50 (B&C), 60, Tughlakabad Institutional Area, New Delhi-110062
E-mail :[email protected] Website : www.ndimdelhi.org
SUMMER TRAINING REPORT ON
STOCK AND COMMODITY MARKET OPERATIONS
For
KARVY COMMODITIES LIMITED
Under the supervision
of
Mr.Malay Hazra
(Compliance Offficer and Head Operations)
Submitted By- Submitted to-
Rahul Jain Prof.Ruchi Arora
470
`
3 | P a g e
Certificate from the Company
3 | P a g e
Certificate from the Company
`
4 | P a g e
ACKNOWLEDGEMENT
I, Rahul Jain, the student of New Delhi Institute of Management, am extremely
grateful to the firm Karvy Comtrade Ltd for the confidence bestowed in me and
entrusting my project entitled “Commodity Market with Karvy ”.
At this juncture I feel deeply honoured in expressing my sincere thanks to my
industry mentor, Mr. Malay Hazra for making the resources available at right time
and providing valuable insights leading to the successful completion of the summer
training project.
I express my gratitude to the Chairman Sir V.M. Bansal for arranging the summer
training in good schedule. I also extend my gratitude to my Project Guide and
Faculty mentor, Prof. Ruchi Arora, who assisted me in compiling the project.
Last but not the least I place a deep sense of gratitude to Mr. Moin, Mr.Narsimha
Rao, Mr.Ranjan Kumar and all the members of the firm Karvy Comtrade Limited
and my colleagues who have been constant source of inspiration during the
preparation of this project work.
I recognize this opportunity as a breakthrough in my career development. I aspire to
use the earned skills sets and knowledge in the best possible way, and I will continue
to work on their refinement, in order to attain desired career objectives.
Sincerely,
Rahul Jain
4 | P a g e
ACKNOWLEDGEMENT
I, Rahul Jain, the student of New Delhi Institute of Management, am extremely
grateful to the firm Karvy Comtrade Ltd for the confidence bestowed in me and
entrusting my project entitled “Commodity Market with Karvy ”.
At this juncture I feel deeply honoured in expressing my sincere thanks to my
industry mentor, Mr. Malay Hazra for making the resources available at right time
and providing valuable insights leading to the successful completion of the summer
training project.
I express my gratitude to the Chairman Sir V.M. Bansal for arranging the summer
training in good schedule. I also extend my gratitude to my Project Guide and
Faculty mentor, Prof. Ruchi Arora, who assisted me in compiling the project.
Last but not the least I place a deep sense of gratitude to Mr. Moin, Mr.Narsimha
Rao, Mr.Ranjan Kumar and all the members of the firm Karvy Comtrade Limited
and my colleagues who have been constant source of inspiration during the
preparation of this project work.
I recognize this opportunity as a breakthrough in my career development. I aspire to
use the earned skills sets and knowledge in the best possible way, and I will continue
to work on their refinement, in order to attain desired career objectives.
Sincerely,
Rahul Jain
`
5 | P a g e
DECLARATION
I Rahul Jain student of New Delhi Institute of Management Batch(2017-19) declare
that every part of the Project Report “Commodity Market with Karvy” submitted by
me is original.
I was in regular contact with my faculty guide and contacted many times for
discussing the project.
Date of project submission:______________
5 | P a g e
DECLARATION
I Rahul Jain student of New Delhi Institute of Management Batch(2017-19) declare
that every part of the Project Report “Commodity Market with Karvy” submitted by
me is original.
I was in regular contact with my faculty guide and contacted many times for
discussing the project.
Date of project submission:______________
`
6 | P a g e
CERTIFICATE OF AUTHENTICITY
Faculty Mentor’s Comments:
______________________________________________________________________________________
______________________________________________________________________________________
___________________________________________________________________________________
Prof.Ruchi Arora
6 | P a g e
CERTIFICATE OF AUTHENTICITY
Faculty Mentor’s Comments:
______________________________________________________________________________________
______________________________________________________________________________________
___________________________________________________________________________________
Prof.Ruchi Arora
`
7 | P a g e
External Examiner’s Feedback
Date of project submission:_____________
External Examiner’s Comments:
______________________________________________________________________________________
______________________________________________________________________________________
___________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
___________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
___________________________________________________________________________________
Signature of External Examiner
Name
Organisation
7 | P a g e
External Examiner’s Feedback
Date of project submission:_____________
External Examiner’s Comments:
______________________________________________________________________________________
______________________________________________________________________________________
___________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
___________________________________________________________________________________
______________________________________________________________________________________
______________________________________________________________________________________
___________________________________________________________________________________
Signature of External Examiner
Name
Organisation
`
8 | P a g e
TABLE OF CONTENTS
S.No. Contents Page No.
1 Executive Summary
Objective
Methodology
Observations & findings
Limitation
Value Addition
9-12
10
11
11
12
12
2 Industry overview
Introduction to Commodity Market
13
13
3 Company profile
Introduction
Group company
Karvy commodity
Organizational structure
Promoters & management
Services offered by company
CSR activities by company
15-32
15
17
20
22
23
25
32
4 Details of the work done 39
5 Analysis of Change in trading hours 55
6 Biblography 65
7 Annexure
Weekly reports
Mid evaluation form
Final evaluation form
66
8 | P a g e
TABLE OF CONTENTS
S.No. Contents Page No.
1 Executive Summary
Objective
Methodology
Observations & findings
Limitation
Value Addition
9-12
10
11
11
12
12
2 Industry overview
Introduction to Commodity Market
13
13
3 Company profile
Introduction
Group company
Karvy commodity
Organizational structure
Promoters & management
Services offered by company
CSR activities by company
15-32
15
17
20
22
23
25
32
4 Details of the work done 39
5 Analysis of Change in trading hours 55
6 Biblography 65
7 Annexure
Weekly reports
Mid evaluation form
Final evaluation form
66
`
9 | P a g e
EXECUTIVE SUMMARY
This study was under taken at “Karvy Commodities Ltd.” At Hyderabad .
The study mainly deals with providing advisory services investor. This study is to
conduct an analysis of the pattern of investment made by the investors at Karvy
Commodities Ltd and to suggest possible solutions to increase awareness among
the investors in commodities market.
Different web based literature has been studied to understand which are the major
players of commodity markets in the country? And what is their way of operation?
What is their modus operandi?
While I were surveying various web site I came to know the whole commodity
market and the exchange takes place in this market is broadly classify into two
principle categories that is agriculture and non-agriculture commodity market.
As commodity market is the place where two parties agree to buy and sell a
specified and standardized quantity of a commodity at a certain time of future at a
price agreed upon at the time of agreement agreed upon irrespective of availing
future price. Following the significance of commodity market is the history of the
commodity market. The root of commodity market is traced from Japan where
Japanese merchants used to store rice in ware houses and later on they have issued
“Rice tickets”. And as the time passes rice tickets are started to accepted as a
currency.
Patterns of exchange that was prevailing in the market which was auction and the
pattern that is currently prevailing in the market which is future is discussed. Major
international and national players are described.
9 | P a g e
EXECUTIVE SUMMARY
This study was under taken at “Karvy Commodities Ltd.” At Hyderabad .
The study mainly deals with providing advisory services investor. This study is to
conduct an analysis of the pattern of investment made by the investors at Karvy
Commodities Ltd and to suggest possible solutions to increase awareness among
the investors in commodities market.
Different web based literature has been studied to understand which are the major
players of commodity markets in the country? And what is their way of operation?
What is their modus operandi?
While I were surveying various web site I came to know the whole commodity
market and the exchange takes place in this market is broadly classify into two
principle categories that is agriculture and non-agriculture commodity market.
As commodity market is the place where two parties agree to buy and sell a
specified and standardized quantity of a commodity at a certain time of future at a
price agreed upon at the time of agreement agreed upon irrespective of availing
future price. Following the significance of commodity market is the history of the
commodity market. The root of commodity market is traced from Japan where
Japanese merchants used to store rice in ware houses and later on they have issued
“Rice tickets”. And as the time passes rice tickets are started to accepted as a
currency.
Patterns of exchange that was prevailing in the market which was auction and the
pattern that is currently prevailing in the market which is future is discussed. Major
international and national players are described.
`
10 | P a g e
The perspective of commodity market in which active and passive mode of
commodity market, volatility, liquidity of commodity market and their relation
with economy are discussed.
Participants of the commodity market those are hedgers, speculators and
arbitrators their power and limitations, functioning etc. are described in brief.
A complete working and delivery process of commodity market including various
stages are clearly mentioned with the use of flow chart. Spot trade and future trade
are also explained well.
At the end unresolved issues of commodity market and future prospect of
commodity market is written down.
Objectives:
This Study undertaken at the Karvy Commodities Limited at Hyderabad.
Objectives are as follows
To study about major exchanges trading in Indian commodity market.
To study the commodity trading practices in India.
To study the working procedure, trading and settlement mechanism for
commodities in Indian stock exchange
To know the attitude of investors towards commodities & other
investment avenues.
To know the advantages and dis-advantages of commodity markets.
To study the mechanism of commodity market.
To come up with the awareness of commodity trading.
10 | P a g e
The perspective of commodity market in which active and passive mode of
commodity market, volatility, liquidity of commodity market and their relation
with economy are discussed.
Participants of the commodity market those are hedgers, speculators and
arbitrators their power and limitations, functioning etc. are described in brief.
A complete working and delivery process of commodity market including various
stages are clearly mentioned with the use of flow chart. Spot trade and future trade
are also explained well.
At the end unresolved issues of commodity market and future prospect of
commodity market is written down.
Objectives:
This Study undertaken at the Karvy Commodities Limited at Hyderabad.
Objectives are as follows
To study about major exchanges trading in Indian commodity market.
To study the commodity trading practices in India.
To study the working procedure, trading and settlement mechanism for
commodities in Indian stock exchange
To know the attitude of investors towards commodities & other
investment avenues.
To know the advantages and dis-advantages of commodity markets.
To study the mechanism of commodity market.
To come up with the awareness of commodity trading.
`
11 | P a g e
Methodology
Both the primary and secondary data’s are used in the report.
Primary Data:-
Interaction with the Manager and staff, Hyderabad office.
Set of questions asked to the investors with the clients of KARVY.
Secondary Data:-
From the Internet and Magazines.
Observations and Finding
There is positive correlation between both market traders can easily predict
the future prices of the commodities and hedge their position.
Most of the respondents are interested in investing in equity when
compared to the other investment alternatives because they feel investing in
equity will provide more returns to them.
Investors are aware about commodity future market but as the investment is
high in order to get returns so they resist themselves.
Investors have not invested as they have a perception that it is risky and
they even do not have much knowledge about trading mechanism.
For gold price fluctuation main reasons are:
o Dollar depreciation / appreciation
o World distress
o Increase in money supply
o Inflation
11 | P a g e
Methodology
Both the primary and secondary data’s are used in the report.
Primary Data:-
Interaction with the Manager and staff, Hyderabad office.
Set of questions asked to the investors with the clients of KARVY.
Secondary Data:-
From the Internet and Magazines.
Observations and Finding
There is positive correlation between both market traders can easily predict
the future prices of the commodities and hedge their position.
Most of the respondents are interested in investing in equity when
compared to the other investment alternatives because they feel investing in
equity will provide more returns to them.
Investors are aware about commodity future market but as the investment is
high in order to get returns so they resist themselves.
Investors have not invested as they have a perception that it is risky and
they even do not have much knowledge about trading mechanism.
For gold price fluctuation main reasons are:
o Dollar depreciation / appreciation
o World distress
o Increase in money supply
o Inflation
`
12 | P a g e
Limitations of the Study
The time confined for study is very limited which does not enable to
make a comprehensive study.
Time of 6 weeks was constraint for the study.
Value Addition
Build in-house processes that will ensure transparent and harmonious
relationships with its clients and investors to provide high quality of services
such as proper study and tracking of KYC forms.
Establish a partner relationship with 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.
Strive to keep all stake-holders (shareholders, clients, investors, employees,
suppliers and regulatory authorities) proud and satisfied by establishing a
proper feedback system.
12 | P a g e
Limitations of the Study
The time confined for study is very limited which does not enable to
make a comprehensive study.
Time of 6 weeks was constraint for the study.
Value Addition
Build in-house processes that will ensure transparent and harmonious
relationships with its clients and investors to provide high quality of services
such as proper study and tracking of KYC forms.
Establish a partner relationship with 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.
Strive to keep all stake-holders (shareholders, clients, investors, employees,
suppliers and regulatory authorities) proud and satisfied by establishing a
proper feedback system.
`
13 | P a g e
Industry Overview
Introduction to Commodity Market
Ever since the drawn of civilization, commodity trading has become an
integral part of mankind. The first and foremost reason is that commodity
represents the fundamental elements of lifestyle of human beings. In the early
days, people used to exchange goods for goods, which was called as ‘Barter
System’. With the advancement of civilization, trading system has gone
through various changes and has now entered into an era of Future trading
besides existence physical
Indian scenario
The commodity derivatives markets in India are as old as those of the US. The
origin of commodity derivatives markets in India can be traced back to 1875,
when Bombay Cotton Trade Association Ltd., was set up to start trading in
cotton Futures. Subsequent to this, many other associations have started
Future trading in commodities at different places. For example, the Futures
trading in oilseeds started in 1900 at Bombay, raw jute and jute products in
1912 in Calcutta, wheat in Hapur in 1913, bullion in Bombay in 1920.
However, in 1939, the Option trading in cotton was banned by the government
of Bombay to restrict the speculative activity in the cotton market. in
subsequent years, forward trading in various commodities like oilseeds, food
grains, vegetable oil, sugar cloth were also prohibited.
13 | P a g e
Industry Overview
Introduction to Commodity Market
Ever since the drawn of civilization, commodity trading has become an
integral part of mankind. The first and foremost reason is that commodity
represents the fundamental elements of lifestyle of human beings. In the early
days, people used to exchange goods for goods, which was called as ‘Barter
System’. With the advancement of civilization, trading system has gone
through various changes and has now entered into an era of Future trading
besides existence physical
Indian scenario
The commodity derivatives markets in India are as old as those of the US. The
origin of commodity derivatives markets in India can be traced back to 1875,
when Bombay Cotton Trade Association Ltd., was set up to start trading in
cotton Futures. Subsequent to this, many other associations have started
Future trading in commodities at different places. For example, the Futures
trading in oilseeds started in 1900 at Bombay, raw jute and jute products in
1912 in Calcutta, wheat in Hapur in 1913, bullion in Bombay in 1920.
However, in 1939, the Option trading in cotton was banned by the government
of Bombay to restrict the speculative activity in the cotton market. in
subsequent years, forward trading in various commodities like oilseeds, food
grains, vegetable oil, sugar cloth were also prohibited.
`
14 | P a g e
India’s commodity exchanges have come a long way since their opening up in
the early twenty first century. In India, three national level exchanges namely
Multi Commodity Exchange of India (MCEX), National Commodity and
Derivatives Exchange (NCDEX) and National Multi Commodity Exchanges
are operating to cater to the needs of Indian investors. Apart from these
national level exchanges, nearly 20 regional exchanges are in operation, to
deal with specified commodities in that region.
14 | P a g e
India’s commodity exchanges have come a long way since their opening up in
the early twenty first century. In India, three national level exchanges namely
Multi Commodity Exchange of India (MCEX), National Commodity and
Derivatives Exchange (NCDEX) and National Multi Commodity Exchanges
are operating to cater to the needs of Indian investors. Apart from these
national level exchanges, nearly 20 regional exchanges are in operation, to
deal with specified commodities in that region.
`
15 | P a g e
Company Profile
Mission: To be the leading and preferred service provider to our customers, and we
aim to achieve this leadership position by building an innovative, enterprising, and
technology driven organization which will set the highest standards of service and
business ethics.
Vision: Strive to be the leaders and experts through our processes, people and
technology offering the unique blend that delivers superior value by establishing and
maintaining the highest levels of services and professionalism.
The Karvy Group is today a well diversified conglomerate. Its in the financial
services segment, the non financial businesses bring in a lot of stability to the
group’s businesses. businesses straddle the entire financial services spectrum as well
as data processing and managing segments. Since most of its financial services were
retail focused, the need to build scale and skill in the transaction processing domain
became imperative. Also during stressed environment
Karvy’s financial services business is ranked among the top-5 in the country across
its business segments. The Group services over 70 million individual investors in
various capacities, and provides investor services to over 600 corporate houses,
comprising the best of Corporate India.
The Group offers stock broking, depository participant, distribution of financial
products (including mutual funds, bonds and fixed deposits), commodities broking,
personal finance advisory services, merchant banking & corporate finance, wealth
management, NBFC (loans to individuals, micro and small businesses), Data
management, Forex & currencies, Registrar & Transfer agents, Data Analytics,
Market Research among others.
15 | P a g e
Company Profile
Mission: To be the leading and preferred service provider to our customers, and we
aim to achieve this leadership position by building an innovative, enterprising, and
technology driven organization which will set the highest standards of service and
business ethics.
Vision: Strive to be the leaders and experts through our processes, people and
technology offering the unique blend that delivers superior value by establishing and
maintaining the highest levels of services and professionalism.
The Karvy Group is today a well diversified conglomerate. Its in the financial
services segment, the non financial businesses bring in a lot of stability to the
group’s businesses. businesses straddle the entire financial services spectrum as well
as data processing and managing segments. Since most of its financial services were
retail focused, the need to build scale and skill in the transaction processing domain
became imperative. Also during stressed environment
Karvy’s financial services business is ranked among the top-5 in the country across
its business segments. The Group services over 70 million individual investors in
various capacities, and provides investor services to over 600 corporate houses,
comprising the best of Corporate India.
The Group offers stock broking, depository participant, distribution of financial
products (including mutual funds, bonds and fixed deposits), commodities broking,
personal finance advisory services, merchant banking & corporate finance, wealth
management, NBFC (loans to individuals, micro and small businesses), Data
management, Forex & currencies, Registrar & Transfer agents, Data Analytics,
Market Research among others.
`
16 | P a g e
Karvy prides itself on remaining customer centric as all times through a combination
of leading edge technology, Professional management and a wide network of offices
across India.
Karvy is committed to its quest as an Equal Opportunity Employer and believes in
the rights for differently-abled persons. We have over 12% employees who are
challenged in some form in one of our prominent businesses.
16 | P a g e
Karvy prides itself on remaining customer centric as all times through a combination
of leading edge technology, Professional management and a wide network of offices
across India.
Karvy is committed to its quest as an Equal Opportunity Employer and believes in
the rights for differently-abled persons. We have over 12% employees who are
challenged in some form in one of our prominent businesses.
`
17 | P a g e
Group Companies
Karvy Stock Broking LTD
Equity Broking, Depository Participant, Distribution of Financial Products
(Mutual Funds, FD and Bonds), Wealth Management Services, Currency
Derivatives, Portfolio Management Services
Karvy Comtrade LTD
Commodities Broking
Karvy Capital LTD( Formerly Karvy Capital Private LTD)
NBFC & Portfolio Manager
Karvy Investment Advisory Services LTD(Formerly known as Karvy
Insurance Broking LTD)
Investment Advisory Services
Karvy Holdings LTD
Core Investment Company
Karvy Middle East LLC
Wealth Management Products for NRI's
Karvy Realty (India) LTD
Realty Services
Karvy Financial Services LTD
Non Banking Financial Services
Karvy Insurance Repository LTD
Insurance Repository services
Karvy Forex & Currencies Private LTD
Currency and forex services
Karvy Consultants LTD
Consultancy and Advisory Services, Publications
17 | P a g e
Group Companies
Karvy Stock Broking LTD
Equity Broking, Depository Participant, Distribution of Financial Products
(Mutual Funds, FD and Bonds), Wealth Management Services, Currency
Derivatives, Portfolio Management Services
Karvy Comtrade LTD
Commodities Broking
Karvy Capital LTD( Formerly Karvy Capital Private LTD)
NBFC & Portfolio Manager
Karvy Investment Advisory Services LTD(Formerly known as Karvy
Insurance Broking LTD)
Investment Advisory Services
Karvy Holdings LTD
Core Investment Company
Karvy Middle East LLC
Wealth Management Products for NRI's
Karvy Realty (India) LTD
Realty Services
Karvy Financial Services LTD
Non Banking Financial Services
Karvy Insurance Repository LTD
Insurance Repository services
Karvy Forex & Currencies Private LTD
Currency and forex services
Karvy Consultants LTD
Consultancy and Advisory Services, Publications
`
18 | P a g e
Karvy Computershare Private LTD
Registrar and Share Transfer agent
Karvy Computershare W.L.L( Formerly known as Fakhro Karvy
Computershare W.L.L )
Agent for Custody & Registration of Securities, Registered Administrator
Karvy Data Management Services LTD
Data Management Services
Karvy Investor Services LTD
Merchant Banking and Corporate Finance
Karvy Insights LTD
Market Research
Karvy Analytics LTD
Analytics
Karvy Solar Power LTD
Power Generation
Karvy Global Services LTD
Business Process Outsourcing
Karvy Global Services Inc, USA
Business Process Outsourcing
Karvy Inc, USA
18 | P a g e
Karvy Computershare Private LTD
Registrar and Share Transfer agent
Karvy Computershare W.L.L( Formerly known as Fakhro Karvy
Computershare W.L.L )
Agent for Custody & Registration of Securities, Registered Administrator
Karvy Data Management Services LTD
Data Management Services
Karvy Investor Services LTD
Merchant Banking and Corporate Finance
Karvy Insights LTD
Market Research
Karvy Analytics LTD
Analytics
Karvy Solar Power LTD
Power Generation
Karvy Global Services LTD
Business Process Outsourcing
Karvy Global Services Inc, USA
Business Process Outsourcing
Karvy Inc, USA
`
19 | P a g e
19 | P a g e
`
20 | P a g e
Karvy Commodities
Karvy Comtrade Ltd. (KCTL) is a part of the diversified financial services group
Karvy, headquartered in Hyderabad. KCTL was founded in 2005 on the simple idea
of providing a superior trading platform and exclusive research services to its
clients. Now KCTL, with a decade-long track record of reliability in the commodity
market serves the needs of various investors across zones, regions and branches. The
company is present in excess of 400 cities and towns of India though its 900 strong
office network.
KCTL holds memberships of the following leading commodity exchanges of India:
Multi Commodity Exchange of India (MCX)
National Commodities and Derivatives Exchange (NCDEX)
National Multi-Commodity Exchange of India (NMCE)
Ace Commodity Exchange (ACE) and other exchange
Karvy Commodities also known as Karvy Comtrade Limited (KCTL) has more than
a decade of experience in Indian commodity market and providing trading solutions.
KCTL offerings include commodities trading platform into futures, consultancy for
spot markets, providing hedging solutions and arbitrage strategies. It has an in house
team of dedicated research experts which provide in depth, timely and accurate
advice on intraday and positional investments. The vast research team caters to all
major soft and Hard Commodities viz, Agricultural and Mined commodities.
The market coverage includes precious metals, Base metals, Energy, Oil seeds and
soft commodities like Sugar, Cotton and other. Trading and investing in
commodities provides investors an alternative that are looking to diversify their
portfolios other than bonds, mutual funds, real estates and equity.
20 | P a g e
Karvy Commodities
Karvy Comtrade Ltd. (KCTL) is a part of the diversified financial services group
Karvy, headquartered in Hyderabad. KCTL was founded in 2005 on the simple idea
of providing a superior trading platform and exclusive research services to its
clients. Now KCTL, with a decade-long track record of reliability in the commodity
market serves the needs of various investors across zones, regions and branches. The
company is present in excess of 400 cities and towns of India though its 900 strong
office network.
KCTL holds memberships of the following leading commodity exchanges of India:
Multi Commodity Exchange of India (MCX)
National Commodities and Derivatives Exchange (NCDEX)
National Multi-Commodity Exchange of India (NMCE)
Ace Commodity Exchange (ACE) and other exchange
Karvy Commodities also known as Karvy Comtrade Limited (KCTL) has more than
a decade of experience in Indian commodity market and providing trading solutions.
KCTL offerings include commodities trading platform into futures, consultancy for
spot markets, providing hedging solutions and arbitrage strategies. It has an in house
team of dedicated research experts which provide in depth, timely and accurate
advice on intraday and positional investments. The vast research team caters to all
major soft and Hard Commodities viz, Agricultural and Mined commodities.
The market coverage includes precious metals, Base metals, Energy, Oil seeds and
soft commodities like Sugar, Cotton and other. Trading and investing in
commodities provides investors an alternative that are looking to diversify their
portfolios other than bonds, mutual funds, real estates and equity.
`
21 | P a g e
We at Karvy deliver our customers the best commodity trading experience with
world class unmatched research and customer friendly approach that helps the
investors to take informed decisions. Also, Karvy offers the latest state-of-the-art,
user friendly technology platform to its clients for trading on the go. Karvy
commodity holds memberships of MCX, NCDEX, NMCE, ACE and Other
exchanges.
We provide end-to-end solution for retail traders and corporate houses for
trading/hedging on commodities and commodity derivatives options. With
decade long experience in commodity trading platform, presence in 400+ cities
and towns we serve the investors in various zones with the vision of providing
the superior trading platform at minimal risks.
The commodities that are traded today are:
Agro-Based Commodities : Wheat, Corn, Cotton, Oils, Oilseeds etc.
Soft Commodities : Coffee, Cocoa, Sugar etc.
Livestock : Live Cattle, Pork Bellies etc.
Energy : Crude Oil, Natural Gas, Gasoline etc.
Precious Metals : Gold, Silver, Platinum etc.
Other Metals : Nickel, Aluminum, Copper etc.
21 | P a g e
We at Karvy deliver our customers the best commodity trading experience with
world class unmatched research and customer friendly approach that helps the
investors to take informed decisions. Also, Karvy offers the latest state-of-the-art,
user friendly technology platform to its clients for trading on the go. Karvy
commodity holds memberships of MCX, NCDEX, NMCE, ACE and Other
exchanges.
We provide end-to-end solution for retail traders and corporate houses for
trading/hedging on commodities and commodity derivatives options. With
decade long experience in commodity trading platform, presence in 400+ cities
and towns we serve the investors in various zones with the vision of providing
the superior trading platform at minimal risks.
The commodities that are traded today are:
Agro-Based Commodities : Wheat, Corn, Cotton, Oils, Oilseeds etc.
Soft Commodities : Coffee, Cocoa, Sugar etc.
Livestock : Live Cattle, Pork Bellies etc.
Energy : Crude Oil, Natural Gas, Gasoline etc.
Precious Metals : Gold, Silver, Platinum etc.
Other Metals : Nickel, Aluminum, Copper etc.
`
22 | P a g e
Organizational Structure of the Karvy Group
22 | P a g e
Organizational Structure of the Karvy Group
`
23 | P a g e
Promoters & Management Team
Management Team
•Mr. C. Parthasarathy
Chairman & Managing
Director
•Mr. M. YugandharManaging Director
•Mr. M. S. Ramakrishna
Director
•Mr. V.Mahesh
Managing Director –
Karvy Data
Management
•Mr. V. Ganesh
CEO –Karvy
Computershare
•Mr. Sushil Sinha
Wholetime Director -
Karvy Comtrade
•Mr. Deepak GuptaGroup Head -HR
•Mr. G. Krishna HariGroup Head -Finance
•Mr. P. B. Ramapriyan
Vice President & Head
-Financial Product
Distribution
•Mr. Rajiv R. Singh
Vice President &
Business Head -Karvy
Stock Broking Limited
•Mr. J. Ramaswamy
Group Head -
Corporate Affairs
23 | P a g e
Promoters & Management Team
Management Team
•Mr. C. Parthasarathy
Chairman & Managing
Director
•Mr. M. YugandharManaging Director
•Mr. M. S. Ramakrishna
Director
•Mr. V.Mahesh
Managing Director –
Karvy Data
Management
•Mr. V. Ganesh
CEO –Karvy
Computershare
•Mr. Sushil Sinha
Wholetime Director -
Karvy Comtrade
•Mr. Deepak GuptaGroup Head -HR
•Mr. G. Krishna HariGroup Head -Finance
•Mr. P. B. Ramapriyan
Vice President & Head
-Financial Product
Distribution
•Mr. Rajiv R. Singh
Vice President &
Business Head -Karvy
Stock Broking Limited
•Mr. J. Ramaswamy
Group Head -
Corporate Affairs
`
24 | P a g e
Management Team of Karvy Comtrade
•Mr. Sushil Sinha
Executive
Director
•Mr. Malay Hazra
Head
Operations
•Mr. Veeresh Hiremath
Head
Research
24 | P a g e
Management Team of Karvy Comtrade
•Mr. Sushil Sinha
Executive
Director
•Mr. Malay Hazra
Head
Operations
•Mr. Veeresh Hiremath
Head
Research
`
25 | P a g e
Services Offered at Karvy Comtrade
Smart Trade
With the advancement of technology and world becoming a tech-savvy, the trading
community is moving from traditional way of trading into technology driven trading.
Hence, taking into consideration of growing demand for tech-savvy, KCTL is
offering smart trade platform for commodity trading in India where investors can
trade from their PCs, tablets and mobile phone even during transit.
Open an account
How to open Commodity
Trading Account Client Registration
Online Trading - Smart Trade Refer a client
Physical Trade
Corporat
e Desk
Smart
Trade
25 | P a g e
Services Offered at Karvy Comtrade
Smart Trade
With the advancement of technology and world becoming a tech-savvy, the trading
community is moving from traditional way of trading into technology driven trading.
Hence, taking into consideration of growing demand for tech-savvy, KCTL is
offering smart trade platform for commodity trading in India where investors can
trade from their PCs, tablets and mobile phone even during transit.
Open an account
How to open Commodity
Trading Account Client Registration
Online Trading - Smart Trade Refer a client
Physical Trade
Corporat
e Desk
Smart
Trade
`
26 | P a g e
Mobile Trading
Video of how to download Karvy Online Trading apps
Internet Trading in Commodities
Enter your Log in details and start using the software
Installation process / Functions
Installation Procedure
Script add process
Smart Online Fund Transfer ( SOFT)
How to use ODIN
ODIN installation procedure
How to use Smart Trade
Corporate Desk
The KCTL Corporate Desk has been helping corporate clients in adopting
comprehensive strategies to manage their price and exchange risk volatility since the
time of their inception. The desk strives to develop customized risk-mitigation
solutions and strategies, tailored to protect company profits from excessive
volatility, particularly in these uncertain times. We endeavour to provide you with
consistent, realistic data-based analysis and recommendations.
The company’s Corporate Desk’s end-to-end support begins with a comprehensive
review of the client’s commodity exposure and transaction cycle. Thereafter, we
perform an in-depth market analysis and accurately assess client risk and
requirements before devising the right strategy. Following a systematic approach,
the desk offers a combination of customer friendly approach and managed services
26 | P a g e
Mobile Trading
Video of how to download Karvy Online Trading apps
Internet Trading in Commodities
Enter your Log in details and start using the software
Installation process / Functions
Installation Procedure
Script add process
Smart Online Fund Transfer ( SOFT)
How to use ODIN
ODIN installation procedure
How to use Smart Trade
Corporate Desk
The KCTL Corporate Desk has been helping corporate clients in adopting
comprehensive strategies to manage their price and exchange risk volatility since the
time of their inception. The desk strives to develop customized risk-mitigation
solutions and strategies, tailored to protect company profits from excessive
volatility, particularly in these uncertain times. We endeavour to provide you with
consistent, realistic data-based analysis and recommendations.
The company’s Corporate Desk’s end-to-end support begins with a comprehensive
review of the client’s commodity exposure and transaction cycle. Thereafter, we
perform an in-depth market analysis and accurately assess client risk and
requirements before devising the right strategy. Following a systematic approach,
the desk offers a combination of customer friendly approach and managed services
`
27 | P a g e
to keep client profitability on track even as it attempts to minimize regulatory and
compliance costs.
The Corporate Desk Approach
Discover: Identify the need and relevant commodity exposure
Design: Devise a strategy according to the purchase cycle of the company
Develop: Formulate a strategy Demonstrate: Pilot-test the strategy
Deploy: Put it in action, corresponding to the purchase cycle
Control and review: Review and modify strategies according to market
movement
Special Features
Expertise in handling large corporate for hedging and trading strategies
Customized research reports
Customized back-office reports
Dedicated relationship managers for instant solutions
Large volume-processing capability
Adherence to strict time schedules
Physical Trade
Commodities which we basically divide between agricultural and non-agricultural
group lays the foundation to venture into allied activities. In India non-agricultural
commodities are mostly imported and therefore trading within India does not give
much room. Again, India being an agricultural power house with a diverse set of
agricultural commodities, scope of trading will always be available. KCTL
facilitates in guiding corporate/traders in physical trades under its various sub heads.
27 | P a g e
to keep client profitability on track even as it attempts to minimize regulatory and
compliance costs.
The Corporate Desk Approach
Discover: Identify the need and relevant commodity exposure
Design: Devise a strategy according to the purchase cycle of the company
Develop: Formulate a strategy Demonstrate: Pilot-test the strategy
Deploy: Put it in action, corresponding to the purchase cycle
Control and review: Review and modify strategies according to market
movement
Special Features
Expertise in handling large corporate for hedging and trading strategies
Customized research reports
Customized back-office reports
Dedicated relationship managers for instant solutions
Large volume-processing capability
Adherence to strict time schedules
Physical Trade
Commodities which we basically divide between agricultural and non-agricultural
group lays the foundation to venture into allied activities. In India non-agricultural
commodities are mostly imported and therefore trading within India does not give
much room. Again, India being an agricultural power house with a diverse set of
agricultural commodities, scope of trading will always be available. KCTL
facilitates in guiding corporate/traders in physical trades under its various sub heads.
`
28 | P a g e
Agricultural commodity trading can be started, basically in two steps -
Procurement based trading
Warehousing support for agri commodities
Procurement of commodities can be done in three ways -
Physical procurement
Based on arbitrage opportunity
As a raw material supplier
Procure, store and sell in physical
Procurement-based on arbitrage opportunity
As per arbitrage opportunity agri commodities can be traded/procured like:
Futures to Futures
Futures to Spot
Spot to Futures
Limitations
Opportunities are limited (return)
Commodities are seasonal in nature
Commodities shelf life
Since commodities are seasonal in nature and also weather and monsoon plays an
important role along with 3-4 months of storability, the final output (produce) can
always be a vagary of such factors. Thus it reduces the ROI. However that doesn’t
mean scope is unavailable. Scope is there but it’s a limited one and a full-fledged
sustainable business vertical can’t be created only for this.
28 | P a g e
Agricultural commodity trading can be started, basically in two steps -
Procurement based trading
Warehousing support for agri commodities
Procurement of commodities can be done in three ways -
Physical procurement
Based on arbitrage opportunity
As a raw material supplier
Procure, store and sell in physical
Procurement-based on arbitrage opportunity
As per arbitrage opportunity agri commodities can be traded/procured like:
Futures to Futures
Futures to Spot
Spot to Futures
Limitations
Opportunities are limited (return)
Commodities are seasonal in nature
Commodities shelf life
Since commodities are seasonal in nature and also weather and monsoon plays an
important role along with 3-4 months of storability, the final output (produce) can
always be a vagary of such factors. Thus it reduces the ROI. However that doesn’t
mean scope is unavailable. Scope is there but it’s a limited one and a full-fledged
sustainable business vertical can’t be created only for this.
`
29 | P a g e
Procurement - as a raw material supplier
Select few commodities to start with out of many like Chilli, Turmeric,
Cardamom
Funding based linkages to be established with growers since quality of the
produce plays a key role
Crops are seasonal in nature therefore three crops covering whole year to be
selected
Business model based on backward linkages will be sustainable
Limitations
Limited players
Information shortage
The above limitations can be converted into merits also based on pulling all
expertise together.
Procure, store and sell in physical
Acting like a physical trading company
Specialization around few commodities to start with
Own warehousing and funding will give some cushion
Import and export of commodities
Limitations
Warehousing in itself is not a profitable business unless and until collateral
management is linked to it.
29 | P a g e
Procurement - as a raw material supplier
Select few commodities to start with out of many like Chilli, Turmeric,
Cardamom
Funding based linkages to be established with growers since quality of the
produce plays a key role
Crops are seasonal in nature therefore three crops covering whole year to be
selected
Business model based on backward linkages will be sustainable
Limitations
Limited players
Information shortage
The above limitations can be converted into merits also based on pulling all
expertise together.
Procure, store and sell in physical
Acting like a physical trading company
Specialization around few commodities to start with
Own warehousing and funding will give some cushion
Import and export of commodities
Limitations
Warehousing in itself is not a profitable business unless and until collateral
management is linked to it.
`
30 | P a g e
Summary
In the commodities segment, futures trading help in mitigating the price risk.
However this is only one part of the entire cycle under commodities trade. Traders
encounter volatility due to various market forces at play. Understanding the
backward and forward market linkages in the commodities business can help you
tide over the vagaries.
New Initiatives taken towards for better Customer Satisfaction
The two major initiatives taken by the company for better customer satisfaction are
introduction of E-KYC for account opening and OMNESYS software for trading.
E-KYC
As the market is moving towards the new era of technology Karvy Comtrade
introduces a new way to open an account for trading, the company is moving
towards to adoption of new technology and software. Karvy Comtrade is now
digital. Karvy Commodities is the first commodity broker who introduced E-KYC
wherein customers can open account in minutes based on Aadhar. The process of E-
KYC started on 2
nd
May 2017.
COM-X
COM-X is developed by Shilpi Technologies Pvt. Ltd, is a complete solution for
members across several exchange venues . It supports multiple exchanges and
multiple segment trading.
30 | P a g e
Summary
In the commodities segment, futures trading help in mitigating the price risk.
However this is only one part of the entire cycle under commodities trade. Traders
encounter volatility due to various market forces at play. Understanding the
backward and forward market linkages in the commodities business can help you
tide over the vagaries.
New Initiatives taken towards for better Customer Satisfaction
The two major initiatives taken by the company for better customer satisfaction are
introduction of E-KYC for account opening and OMNESYS software for trading.
E-KYC
As the market is moving towards the new era of technology Karvy Comtrade
introduces a new way to open an account for trading, the company is moving
towards to adoption of new technology and software. Karvy Comtrade is now
digital. Karvy Commodities is the first commodity broker who introduced E-KYC
wherein customers can open account in minutes based on Aadhar. The process of E-
KYC started on 2
nd
May 2017.
COM-X
COM-X is developed by Shilpi Technologies Pvt. Ltd, is a complete solution for
members across several exchange venues . It supports multiple exchanges and
multiple segment trading.
`
31 | P a g e
Comx trader is the front-end application that allows trader to perform several
trading functions that includes:
Track scrip’s of user’s choice by creating market watch groups
View market picture data for scrip’s
Place Buy/Sell orders to the exchange
View orders , trades and position data
Set up effective risk management system
Use add-on tools to receive alerts, send internal messages etc.
31 | P a g e
Comx trader is the front-end application that allows trader to perform several
trading functions that includes:
Track scrip’s of user’s choice by creating market watch groups
View market picture data for scrip’s
Place Buy/Sell orders to the exchange
View orders , trades and position data
Set up effective risk management system
Use add-on tools to receive alerts, send internal messages etc.
`
32 | P a g e
CSR Activities
1. Preamble
Section 135 of Companies Act, 2013 mandates every company having a net worth of
Rs.500 Crore or more or revenue of Rs.1,000 Crore or more or net profit of Rs.5
Crore or more shall constitute a Corporate Social Responsibility (CSR) Committee
and the CSR Committee is responsible for formulating Company’s CSR policy and
monitoring the CSR programs and their performance.
It is the Company's philosophy, firm belief and intent to effectively implement CSR
and make a positive difference to society. It recognizes that it cannot do it all; so that
if there are choices to be made, bias will be towards doing fewer projects with better
outcomes and good impact and will focus initiatives on communities in which the
Company lives, operates and particularly forming community whose development is
the basic mission of the Company.
2. CSR Policy
This Policy shall be read in line with Section 135 of the Companies Act 2013,
Companies (Corporate Social Responsibility Policy) Rules, 2014 and such other
rules, regulations, circulars, and notifications (collectively referred hereinafter as
'Regulations') as may be applicable and as amended from time to time.
Karvy Computershare Private Limited (KCPL or ‘the Company’) believes that the
actions of the organization and its community are highly inter-dependent. Both on its
own and as part of Karvy Group, through constant and collaborative interactions
with our external stakeholders, KCPL strives to become an asset in the communities
where it operates. As our Corporate Social Responsibility (CSR) we actively
implement projects and initiatives for the betterment of society, communities, and
the environment.
32 | P a g e
CSR Activities
1. Preamble
Section 135 of Companies Act, 2013 mandates every company having a net worth of
Rs.500 Crore or more or revenue of Rs.1,000 Crore or more or net profit of Rs.5
Crore or more shall constitute a Corporate Social Responsibility (CSR) Committee
and the CSR Committee is responsible for formulating Company’s CSR policy and
monitoring the CSR programs and their performance.
It is the Company's philosophy, firm belief and intent to effectively implement CSR
and make a positive difference to society. It recognizes that it cannot do it all; so that
if there are choices to be made, bias will be towards doing fewer projects with better
outcomes and good impact and will focus initiatives on communities in which the
Company lives, operates and particularly forming community whose development is
the basic mission of the Company.
2. CSR Policy
This Policy shall be read in line with Section 135 of the Companies Act 2013,
Companies (Corporate Social Responsibility Policy) Rules, 2014 and such other
rules, regulations, circulars, and notifications (collectively referred hereinafter as
'Regulations') as may be applicable and as amended from time to time.
Karvy Computershare Private Limited (KCPL or ‘the Company’) believes that the
actions of the organization and its community are highly inter-dependent. Both on its
own and as part of Karvy Group, through constant and collaborative interactions
with our external stakeholders, KCPL strives to become an asset in the communities
where it operates. As our Corporate Social Responsibility (CSR) we actively
implement projects and initiatives for the betterment of society, communities, and
the environment.
`
33 | P a g e
3. Scope and Applicability
This policy shall be applicable to all CSR initiatives and activities undertaken by
KCPL either directly or through corporate foundations/trusts/other charitable
organizations for the benefit of different segments of the society.
4. Objective of CSR Policy
The objective of this policy is to continuously and consistently:
To recognize and frame the segments the Company shall chase towards
achieving its CSR objectives.
To formulate the modus operandi of the CSR activities and implementation
of the processes.
Initiate projects that benefit communities.
Encourage an increased commitment from employees towards CSR
activities and volunteering.
Generate goodwill in the communities where KCPL operates or are likely to
operate.
5. Resources
33 | P a g e
3. Scope and Applicability
This policy shall be applicable to all CSR initiatives and activities undertaken by
KCPL either directly or through corporate foundations/trusts/other charitable
organizations for the benefit of different segments of the society.
4. Objective of CSR Policy
The objective of this policy is to continuously and consistently:
To recognize and frame the segments the Company shall chase towards
achieving its CSR objectives.
To formulate the modus operandi of the CSR activities and implementation
of the processes.
Initiate projects that benefit communities.
Encourage an increased commitment from employees towards CSR
activities and volunteering.
Generate goodwill in the communities where KCPL operates or are likely to
operate.
5. Resources
`
34 | P a g e
The Corporate Social Responsibility Committee (‘CSR Committee’ Board level) is
responsible to formulate and recommend to the Board the CSR Policy indicating the
activities falling within the purview of Schedule VII to the Companies Act, 2013, to
be undertaken by the Company, to recommend the amount to be spent on CSR
activities presented by the CSR Council and to monitor the CSR Policy periodically.
The CSR Council will be supported by the CSR Secretariat at Head Office made up
of cross-functional team, for implementation of the approved projects.
CSR Committee:
The CSR Committee of the Board of Directors comprises of the following Members:
1. Mr. M. Yugandhar
2. Mr. C. Parthasarathy
3. Mr. James Wong
4. Mr. Chandra Balaraman
The following members are represented on the CSR Council:
1. Chief Executive Officer
2. Chief Financial Officer or Head of Finance & Accounts
3. Head of HR
6. Responsibilities of the committee
The responsibilities of the CSR committee include --
i. Formulating and recommending to the Board of Directors the CSR policy and
indicating the activities to be carried out
ii. Recommending the amount of CSR expenditure to be spent in the year
iii. Monitoring CSR activities periodically
34 | P a g e
The Corporate Social Responsibility Committee (‘CSR Committee’ Board level) is
responsible to formulate and recommend to the Board the CSR Policy indicating the
activities falling within the purview of Schedule VII to the Companies Act, 2013, to
be undertaken by the Company, to recommend the amount to be spent on CSR
activities presented by the CSR Council and to monitor the CSR Policy periodically.
The CSR Council will be supported by the CSR Secretariat at Head Office made up
of cross-functional team, for implementation of the approved projects.
CSR Committee:
The CSR Committee of the Board of Directors comprises of the following Members:
1. Mr. M. Yugandhar
2. Mr. C. Parthasarathy
3. Mr. James Wong
4. Mr. Chandra Balaraman
The following members are represented on the CSR Council:
1. Chief Executive Officer
2. Chief Financial Officer or Head of Finance & Accounts
3. Head of HR
6. Responsibilities of the committee
The responsibilities of the CSR committee include --
i. Formulating and recommending to the Board of Directors the CSR policy and
indicating the activities to be carried out
ii. Recommending the amount of CSR expenditure to be spent in the year
iii. Monitoring CSR activities periodically
`
35 | P a g e
7. Meeting of the committee
The Committee shall hold meeting as and when required, to discuss various issues
on the implementation of the CSR Policy of the Company. The members would
thrive to hold atleast two meetings in a financial year.
8. Budget and allocation
For achieving the CSR objectives through implementation of meaningful and
sustainable CSR Projects, the CSR Committee will allocate for its Annual CSR
Budget, 2% or more of the average net profits of the Company made during the three
immediately preceding financial years, calculated in accordance with the relevant
provisions of the Companies Act, 2013 read with the Companies (Corporate Social
Responsibility Policy) Rules, 2014.
The Company may also make contributions to Corporate Foundations / Registered
Trusts / other charitable organizations (NGO’s) towards its corpus for projects
approved by the Board. The CSR Committee will approve the CSR budget annually
on receiving the recommendations from CSR Council.
The Company may build CSR through Institutions with established track records of
at least 3 financial years.
9. Volunteering of employees from the organization
The Company will encourage and recognize its employees for volunteering with the
spirit of serving and sharing with the community.
The Company shall endeavor to increase employee participation at all levels in the
Organization, by encouraging employees to participate in the Company’s CSR
activities.
35 | P a g e
7. Meeting of the committee
The Committee shall hold meeting as and when required, to discuss various issues
on the implementation of the CSR Policy of the Company. The members would
thrive to hold atleast two meetings in a financial year.
8. Budget and allocation
For achieving the CSR objectives through implementation of meaningful and
sustainable CSR Projects, the CSR Committee will allocate for its Annual CSR
Budget, 2% or more of the average net profits of the Company made during the three
immediately preceding financial years, calculated in accordance with the relevant
provisions of the Companies Act, 2013 read with the Companies (Corporate Social
Responsibility Policy) Rules, 2014.
The Company may also make contributions to Corporate Foundations / Registered
Trusts / other charitable organizations (NGO’s) towards its corpus for projects
approved by the Board. The CSR Committee will approve the CSR budget annually
on receiving the recommendations from CSR Council.
The Company may build CSR through Institutions with established track records of
at least 3 financial years.
9. Volunteering of employees from the organization
The Company will encourage and recognize its employees for volunteering with the
spirit of serving and sharing with the community.
The Company shall endeavor to increase employee participation at all levels in the
Organization, by encouraging employees to participate in the Company’s CSR
activities.
`
36 | P a g e
10. Focus areas/goals
S.No. Goal area Actions
1 Eradicating Hunger Poverty,
Mal nutrition
Karvy will work with various Non-profit
organization, NGO, Registered societies that
pledge to feed poor people.
2 Healthcare Karvy will work with organizations working in
providing medical or health related projects
such as day care centres, Health and Sanitation
Development programs, medical camps
3 Development of art and
culture
Karvy will work with organizations working in
Protection of national heritage, art and culture
including restoration of buildings and sites of
historical importance and works of art; setting
up public libraries; promotion and development
of traditional arts and handicrafts
4 Promotion of Sports Conducting projects / programs promoting
various sports activities
5 Contribution/Financial
Assistance
Contribution to Prime Minister’s National
Relief Fund or any other fund set up by the
Central Government for socio- economic
development and relief and welfare of the
Scheduled Castes, the Scheduled Tribes, other
backward classes, minorities and women;
36 | P a g e
10. Focus areas/goals
S.No. Goal area Actions
1 Eradicating Hunger Poverty,
Mal nutrition
Karvy will work with various Non-profit
organization, NGO, Registered societies that
pledge to feed poor people.
2 Healthcare Karvy will work with organizations working in
providing medical or health related projects
such as day care centres, Health and Sanitation
Development programs, medical camps
3 Development of art and
culture
Karvy will work with organizations working in
Protection of national heritage, art and culture
including restoration of buildings and sites of
historical importance and works of art; setting
up public libraries; promotion and development
of traditional arts and handicrafts
4 Promotion of Sports Conducting projects / programs promoting
various sports activities
5 Contribution/Financial
Assistance
Contribution to Prime Minister’s National
Relief Fund or any other fund set up by the
Central Government for socio- economic
development and relief and welfare of the
Scheduled Castes, the Scheduled Tribes, other
backward classes, minorities and women;
`
37 | P a g e
6
Underprivileged Children
Education
Support NGOs for Underprivileged
Child Education · Scholarships for
Children to admit them in good
schools Children selected at the age of
10 years All expenses to be paid by the
foundation
Tie-up with larger charity
foundations(Harvard Business School
Education) If in day school, support
children with post school activities and
coaching
Hand hold children till they are 18 years·
This can also be done through setting
up a foundation and doing this
ourselves.
Karvy Employees can also engage in
helping children in activities,
counseling and coaching
7 Promoting,Employment
enhancing Vocational Skills
Contribute to work force productivity
through academic, training and
extension programs
Support job placement and career
progression
Imparting vocational skills to
impoverished and unemployed youth
37 | P a g e
6
Underprivileged Children
Education
Support NGOs for Underprivileged
Child Education · Scholarships for
Children to admit them in good
schools Children selected at the age of
10 years All expenses to be paid by the
foundation
Tie-up with larger charity
foundations(Harvard Business School
Education) If in day school, support
children with post school activities and
coaching
Hand hold children till they are 18 years·
This can also be done through setting
up a foundation and doing this
ourselves.
Karvy Employees can also engage in
helping children in activities,
counseling and coaching
7 Promoting,Employment
enhancing Vocational Skills
Contribute to work force productivity
through academic, training and
extension programs
Support job placement and career
progression
Imparting vocational skills to
impoverished and unemployed youth
`
38 | P a g e
11. Implementation
The CSR Committee shall provide guidance on the allocation of the CSR
budget among the thrust areas on an annual basis.
CSR Projects will be undertaken based on the recommendation of the CSR
Committee to the best possible extent, within the defined Thrust Areas.
KCPL’s support to any project will depend on the scale of the project and
feasibility of the project. The CSR Council has a formal process of
evaluating and approving CSR Projects.
The CSR Council will evaluate the project progress and impact quarterly.
The Company may also collaborate with other companies to undertake CSR Projects
or Programs, provided the CSR Committees of the respective companies are in a
position to report separately on such projects or programs.
38 | P a g e
11. Implementation
The CSR Committee shall provide guidance on the allocation of the CSR
budget among the thrust areas on an annual basis.
CSR Projects will be undertaken based on the recommendation of the CSR
Committee to the best possible extent, within the defined Thrust Areas.
KCPL’s support to any project will depend on the scale of the project and
feasibility of the project. The CSR Council has a formal process of
evaluating and approving CSR Projects.
The CSR Council will evaluate the project progress and impact quarterly.
The Company may also collaborate with other companies to undertake CSR Projects
or Programs, provided the CSR Committees of the respective companies are in a
position to report separately on such projects or programs.
`
39 | P a g e
Detailed Information of the Work Done:
KYC PROCESS
This Know Your Customer (KYC) ahas been prepared in accordance Prevention
of Money Laundering Act, 2002 (PMLA Act). This Policy also takes into account
the provisions of the PMLA Act and other Rules laid down by SEBI, FMC and
FIU.
As per PMLA, every banking company, financial institution and intermediary
(which includes a stock-broker, sub-broker, share transfer agent, banker to an
issue, trustee to a trust deed, registrar to an issue, merchant banker, underwriter,
portfolio manager, investment adviser and any other intermediary associated with
securities market and registered under section 12 of the Securities and Exchange
Board of India Act, 1992) shall have to maintain a record of all the transactions;
the nature and value of which has been prescribed in the Rules notified under the
PMLA. For the purpose of PMLA, transactions include:
1. All cash transactions of the value of more than Rs 10 lakhs or its
equivalent in foreign currency.
2. All series of cash transactions integrally connected to each other which
have been valued below Rs 10 lakhs or its equivalent in foreign currency,
such series of transactions within one calendar month.
3. All suspicious transactions whether or not made in cash and including,
inter-alia, credits or debits into from any non monetary account such as
Demat account, security account maintained by the registered
intermediary.
39 | P a g e
Detailed Information of the Work Done:
KYC PROCESS
This Know Your Customer (KYC) ahas been prepared in accordance Prevention
of Money Laundering Act, 2002 (PMLA Act). This Policy also takes into account
the provisions of the PMLA Act and other Rules laid down by SEBI, FMC and
FIU.
As per PMLA, every banking company, financial institution and intermediary
(which includes a stock-broker, sub-broker, share transfer agent, banker to an
issue, trustee to a trust deed, registrar to an issue, merchant banker, underwriter,
portfolio manager, investment adviser and any other intermediary associated with
securities market and registered under section 12 of the Securities and Exchange
Board of India Act, 1992) shall have to maintain a record of all the transactions;
the nature and value of which has been prescribed in the Rules notified under the
PMLA. For the purpose of PMLA, transactions include:
1. All cash transactions of the value of more than Rs 10 lakhs or its
equivalent in foreign currency.
2. All series of cash transactions integrally connected to each other which
have been valued below Rs 10 lakhs or its equivalent in foreign currency,
such series of transactions within one calendar month.
3. All suspicious transactions whether or not made in cash and including,
inter-alia, credits or debits into from any non monetary account such as
Demat account, security account maintained by the registered
intermediary.
`
40
KYC Philosophy
The KYC is to prevent the platform from being used, intentionally or
unintentionally, by criminal elements for money laundering or terrorist
financing activities. The objective of this policy is also to enable us to
know / understand its customers and their financial dealings better which
in turn will help us to manage its risks prudently.
It is important that our management views “money-laundering
prevention” and “knowing your customer” as part of the risk management
strategies and not simply as stand-alone requirements that are being
imposed by legislation/regulators
Hence the objective of the policy is to –
1. To have a proper Customer Due Diligence (CDD) process before
registering clients.
2. To monitor/maintain records of all cash transactions of the value of
more than Rs.10 lacs.
3. To maintain records of all series of integrally connected cash
transactions within one calendar month.
4. To monitor and report suspicious transactions.
5. To discourage and identify money laundering or terrorist financing
activities.
6. To take adequate and appropriate measures to follow the spirit of the
PMLA.
40
KYC Philosophy
The KYC is to prevent the platform from being used, intentionally or
unintentionally, by criminal elements for money laundering or terrorist
financing activities. The objective of this policy is also to enable us to
know / understand its customers and their financial dealings better which
in turn will help us to manage its risks prudently.
It is important that our management views “money-laundering
prevention” and “knowing your customer” as part of the risk management
strategies and not simply as stand-alone requirements that are being
imposed by legislation/regulators
Hence the objective of the policy is to –
1. To have a proper Customer Due Diligence (CDD) process before
registering clients.
2. To monitor/maintain records of all cash transactions of the value of
more than Rs.10 lacs.
3. To maintain records of all series of integrally connected cash
transactions within one calendar month.
4. To monitor and report suspicious transactions.
5. To discourage and identify money laundering or terrorist financing
activities.
6. To take adequate and appropriate measures to follow the spirit of the
PMLA.
`
41
KYC Registration Process:
E-KYC Tatkal
Account Opening
& Verification
Mark IT
Tracker-
Generation of
client code
Data uploaded in
Shilpi Software
Data uploaded in
Exchange- MCX
& NCDEX
Mapping report
sent to RMS for
generation of
client code in
ODIN
KYC Audit
Scanning of KYC
Checking- KRA
uploaded or not
41
KYC Registration Process:
E-KYC Tatkal
Account Opening
& Verification
Mark IT
Tracker-
Generation of
client code
Data uploaded in
Shilpi Software
Data uploaded in
Exchange- MCX
& NCDEX
Mapping report
sent to RMS for
generation of
client code in
ODIN
KYC Audit
Scanning of KYC
Checking- KRA
uploaded or not
`
42
List of Documents Required:
1. Corporate Bodies:- Mandatory self-certified true documents to be
submitted.
Certificate of Incorporation
Memorandum & Articles of Association
Authorized signatories list with specimen signatures 4. Board resolution
for investment in Mutual Fund
2. Partnership Firm:- Mandatory certified documents to be submitted.
Certificate Of Registration (for registered partnership firms only)
Partnership Deed 3. Authorized signatories list with specimen signatures
3. Hindu Undivided Family (HUF):- Proof of Identity: - Self attested copy
of PAN card in HUF name is mandatory. Mandatory certified documents
to be submitted.
Deed of declaration of HUF or PAN in name of Karta and Bank pass
book / bank statement / Demat statement in the name of HUF.
4. Trusts: - Mandatory certified documents to be submitted.
Certificate of registration (for registered trusts)
Trust deed
Authorized signatories list with specimen signatures
5. Unincorporated association or a body of individuals: - Mandatory
certified documents to be submitted.
42
List of Documents Required:
1. Corporate Bodies:- Mandatory self-certified true documents to be
submitted.
Certificate of Incorporation
Memorandum & Articles of Association
Authorized signatories list with specimen signatures 4. Board resolution
for investment in Mutual Fund
2. Partnership Firm:- Mandatory certified documents to be submitted.
Certificate Of Registration (for registered partnership firms only)
Partnership Deed 3. Authorized signatories list with specimen signatures
3. Hindu Undivided Family (HUF):- Proof of Identity: - Self attested copy
of PAN card in HUF name is mandatory. Mandatory certified documents
to be submitted.
Deed of declaration of HUF or PAN in name of Karta and Bank pass
book / bank statement / Demat statement in the name of HUF.
4. Trusts: - Mandatory certified documents to be submitted.
Certificate of registration (for registered trusts)
Trust deed
Authorized signatories list with specimen signatures
5. Unincorporated association or a body of individuals: - Mandatory
certified documents to be submitted.
`
43
Proof of Existence/Constitution document {Resolution of the managing
body & Power of Attorney granted to transact business on its behalf are
mentioned currently)
Authorized signatories list with specimen signatures
6. Banks/Institutional Investors: Mandatory certified documents to be
submitted.
Copy of constitution/registration documents
List of authorized signatories
7. Foreign Institutional Investors: - Mandatory certified documents to be
submitted.
Certificate of registration with SEBI
Authorized signatories list with specimen signatures
8. Army / Government Bodies: - Mandatory certified documents to be
submitted.
List of authorized signatories.
Self-certification on letterhead. (It was copy of constitution/ registration
documents earlier)
43
Proof of Existence/Constitution document {Resolution of the managing
body & Power of Attorney granted to transact business on its behalf are
mentioned currently)
Authorized signatories list with specimen signatures
6. Banks/Institutional Investors: Mandatory certified documents to be
submitted.
Copy of constitution/registration documents
List of authorized signatories
7. Foreign Institutional Investors: - Mandatory certified documents to be
submitted.
Certificate of registration with SEBI
Authorized signatories list with specimen signatures
8. Army / Government Bodies: - Mandatory certified documents to be
submitted.
List of authorized signatories.
Self-certification on letterhead. (It was copy of constitution/ registration
documents earlier)
`
44
Check list for New KYC Application:
Date of Receiving KYC
Physical Verification
PAN site verification
Tracker entry
Rejection (if any)
UCC allocation
Shilpi Data Entry
Brokerage slab entry
UCC upload –Exchange wise
Exchange Response Verification
Generating RMS mapping
RMS response check
Check Point in KYC:
PAN Card Number Verification in PAN site
Duplicate code verification by PAN number in Tracker
Verification of blocked PA status
KRA & CKYC Upload status
Welcome letter sent to client
44
Check list for New KYC Application:
Date of Receiving KYC
Physical Verification
PAN site verification
Tracker entry
Rejection (if any)
UCC allocation
Shilpi Data Entry
Brokerage slab entry
UCC upload –Exchange wise
Exchange Response Verification
Generating RMS mapping
RMS response check
Check Point in KYC:
PAN Card Number Verification in PAN site
Duplicate code verification by PAN number in Tracker
Verification of blocked PA status
KRA & CKYC Upload status
Welcome letter sent to client
`
45
KYC Audit
Banking, non-banking, and financial organizations are required by law to
establish well defined processes to meet KYC requirements. These institutions
not only have to carry out KYC authentication, but also have to keep an
auditable log of what identity information was checked, by whom, when the
KYC check was done, and the results of the verification. Auditing the KYC
documents poses a challenge as these institutions do not have the time, training,
or bandwidth to undertake this exercise due to shrinking budgets and lack of
KYC trained staff.
The Benefits
KYC Audit helped in
Achieve regulatory compliance by ensuring customer accounts were
KYC compliant and customer records were accurate and complete
Improve risk management practices
Identify customers who were valuable for each branch/the bank, as well
as customers who had zero transactions over an extended period
Reduce the operational risk associated with customers and facilitate
compliance and protection against fraud
Reduce cost by automating previously deployed manual efforts
45
KYC Audit
Banking, non-banking, and financial organizations are required by law to
establish well defined processes to meet KYC requirements. These institutions
not only have to carry out KYC authentication, but also have to keep an
auditable log of what identity information was checked, by whom, when the
KYC check was done, and the results of the verification. Auditing the KYC
documents poses a challenge as these institutions do not have the time, training,
or bandwidth to undertake this exercise due to shrinking budgets and lack of
KYC trained staff.
The Benefits
KYC Audit helped in
Achieve regulatory compliance by ensuring customer accounts were
KYC compliant and customer records were accurate and complete
Improve risk management practices
Identify customers who were valuable for each branch/the bank, as well
as customers who had zero transactions over an extended period
Reduce the operational risk associated with customers and facilitate
compliance and protection against fraud
Reduce cost by automating previously deployed manual efforts
`
46
KYC Audit Process:
46
KYC Audit Process:
`
47
Updation of Client Details:
First the client need to visit the website (www.karvycommodities.com)
and click on MY LOGIN then followed by BACK OFFICE option.
After that a page will appear where the client need to login with their
respective user Id & password.
Then the client need to choose the option ‘COMMODITY-(2016-17)’
and go.
A new page will appear with the menu option on the left hand side. From
there the client need to choose the Request than Change request
A format will appear, where he need to click on the appropriate option, to
update
After choosing the selected option, the client need to fill the form with
new data
After updating they will get an OTP and on entering OTP and submitting
that he will get a message that ‘There data has been updated successfully’
The client required to attach documents for specific options like address
and bank details. For this they need to click on the ‘Document
upload/Check status’ option, which is flashed on the top right corner of
the same format page. And upload the image of the proof
Client can check the updated data through the same option i.e. Check
status
A message will be sent the client’s mobile no. regarding the update of
data.
Note-The client can select one and more than one option to change/update the
data.
47
Updation of Client Details:
First the client need to visit the website (www.karvycommodities.com)
and click on MY LOGIN then followed by BACK OFFICE option.
After that a page will appear where the client need to login with their
respective user Id & password.
Then the client need to choose the option ‘COMMODITY-(2016-17)’
and go.
A new page will appear with the menu option on the left hand side. From
there the client need to choose the Request than Change request
A format will appear, where he need to click on the appropriate option, to
update
After choosing the selected option, the client need to fill the form with
new data
After updating they will get an OTP and on entering OTP and submitting
that he will get a message that ‘There data has been updated successfully’
The client required to attach documents for specific options like address
and bank details. For this they need to click on the ‘Document
upload/Check status’ option, which is flashed on the top right corner of
the same format page. And upload the image of the proof
Client can check the updated data through the same option i.e. Check
status
A message will be sent the client’s mobile no. regarding the update of
data.
Note-The client can select one and more than one option to change/update the
data.
`
48
Auditing the Bills And Contract Notes:
Issuance of contract notes with the signature of the authorised signatory
and which bear a running serial number or bear a serial number, which is
initialized at the beginning of each financial year.
Contract Note is as per the format prescribed by the Exchange.
Contract notes are issued to all the clients.
Contract notes are issued within 24 hours of trade execution.
The authorization for receiving electronic contract note should be in
writing and should be signed by client only, not by power of attorney
holder.
The authorization of electronic contract note contains a clause that any
change in the e-mail id shall be communicated by the client through a
physical letter to the trading member.
Broker has collected physical letters from the clients who have opted for
change in e-mail id.
In case of contract notes issued through electronic media, Log of ECN is
maintained and ECN are signed digitally.
Details of the trade have been attached as an Annexure to the contract
note (original/duplicate) issued, in case of consolidated trade shown in
contract note.
All ECNs sent through the e-mail shall be digitally signed, encrypted, non
tamperable and shall comply with the provisions of the IT Act and GST
Act
Dealing Office and Registered Office Details are printed on the contract
notes.
Details of Compliance officer like his name, telephone number and e-
mail address are displayed prominently on Contract Notes.
Brokerages charged are within the permissible limits
48
Auditing the Bills And Contract Notes:
Issuance of contract notes with the signature of the authorised signatory
and which bear a running serial number or bear a serial number, which is
initialized at the beginning of each financial year.
Contract Note is as per the format prescribed by the Exchange.
Contract notes are issued to all the clients.
Contract notes are issued within 24 hours of trade execution.
The authorization for receiving electronic contract note should be in
writing and should be signed by client only, not by power of attorney
holder.
The authorization of electronic contract note contains a clause that any
change in the e-mail id shall be communicated by the client through a
physical letter to the trading member.
Broker has collected physical letters from the clients who have opted for
change in e-mail id.
In case of contract notes issued through electronic media, Log of ECN is
maintained and ECN are signed digitally.
Details of the trade have been attached as an Annexure to the contract
note (original/duplicate) issued, in case of consolidated trade shown in
contract note.
All ECNs sent through the e-mail shall be digitally signed, encrypted, non
tamperable and shall comply with the provisions of the IT Act and GST
Act
Dealing Office and Registered Office Details are printed on the contract
notes.
Details of Compliance officer like his name, telephone number and e-
mail address are displayed prominently on Contract Notes.
Brokerages charged are within the permissible limits
`
49
Brokerage for option contracts are charged on the premium amount at
which the option contract was bought or sold and not on the strike price
of the option contract. Brokerage on options contracts shall not exceed
2.5% of the premium amount or Rs 100/- per lot whichever is higher.
Client code, Market Rates, Order Time, Order ID, Trade ID, etc. of the
Contract Notes are matching with trade file.
Broker has not created/provided e-mail ids for clients.
Margin Utilization of Clients:
There are basically four types of margins –
• Initial margin
• Mark-to-market margin
• Special margin
• Delivery period margin
Initial Margin
When a commodity trader opens a trading account with a broker, he or she is
required to put down a capital sum to initiate a trade. This acts as a collateral
which allows the commodity trader to enter into the futures market. It is
refundable at delivery, exercise, expiry or squaring off, depending on the profit
or gain on the trade. The initial margin must be maintained throughout the time
that the position is open. If the value of underlying commodity falls below the
margin, you need to top up your account with additional margin to hold the
particular commodity. For commodity futures margins can be in the range 2-
15% of contract value. Initial Margin is to be deposited on the day of
transaction.
49
Brokerage for option contracts are charged on the premium amount at
which the option contract was bought or sold and not on the strike price
of the option contract. Brokerage on options contracts shall not exceed
2.5% of the premium amount or Rs 100/- per lot whichever is higher.
Client code, Market Rates, Order Time, Order ID, Trade ID, etc. of the
Contract Notes are matching with trade file.
Broker has not created/provided e-mail ids for clients.
Margin Utilization of Clients:
There are basically four types of margins –
• Initial margin
• Mark-to-market margin
• Special margin
• Delivery period margin
Initial Margin
When a commodity trader opens a trading account with a broker, he or she is
required to put down a capital sum to initiate a trade. This acts as a collateral
which allows the commodity trader to enter into the futures market. It is
refundable at delivery, exercise, expiry or squaring off, depending on the profit
or gain on the trade. The initial margin must be maintained throughout the time
that the position is open. If the value of underlying commodity falls below the
margin, you need to top up your account with additional margin to hold the
particular commodity. For commodity futures margins can be in the range 2-
15% of contract value. Initial Margin is to be deposited on the day of
transaction.
`
50
Mark-To-Market
Mark-to-market, also called as M2M is the margin that is calculated on each
trading day by taking the difference between the closing price of a contract on
that particular day and the price at which the trade was initiated. In other words,
its the practice of crediting or debiting a trader's account based on the daily
closing prices of the futures contracts he is holding. Mark-to-market margin is
calculated on daily basis to find out the profit or loss on the open futures
position. If there is a profit, the amount is transferred from the clearinghouse to
your trading account by the broker, and in case of loss, the amount is transferred
by the broker from your trading account to the clearinghouse. For example, if
one buys futures of Rs 5000 and its price fall to Rs 4500. Then s/he has to pay
an M2M margin of Rs 500 to take the position in the future.
Special Margin
With a view to controlling price volatility and the breach of the daily circuit
(the maximum permissible daily movement against the previous closing price
on either side), Exchange has introduced the system of Special Margin. The
purpose of this margin is to control excessive speculation and to protect the
interest of common traders and investors. This will be applicable for all the
traders who have an open position and they can't trade further unless this special
margin amount is paid.
MARK TO
MARKET
MARGIN
PROFIT
LOS
S
SETTLEMENT
ON DAILY
BASIS
SETTLEMENT
IN T+2 DAYS
50
Mark-To-Market
Mark-to-market, also called as M2M is the margin that is calculated on each
trading day by taking the difference between the closing price of a contract on
that particular day and the price at which the trade was initiated. In other words,
its the practice of crediting or debiting a trader's account based on the daily
closing prices of the futures contracts he is holding. Mark-to-market margin is
calculated on daily basis to find out the profit or loss on the open futures
position. If there is a profit, the amount is transferred from the clearinghouse to
your trading account by the broker, and in case of loss, the amount is transferred
by the broker from your trading account to the clearinghouse. For example, if
one buys futures of Rs 5000 and its price fall to Rs 4500. Then s/he has to pay
an M2M margin of Rs 500 to take the position in the future.
Special Margin
With a view to controlling price volatility and the breach of the daily circuit
(the maximum permissible daily movement against the previous closing price
on either side), Exchange has introduced the system of Special Margin. The
purpose of this margin is to control excessive speculation and to protect the
interest of common traders and investors. This will be applicable for all the
traders who have an open position and they can't trade further unless this special
margin amount is paid.
MARK TO
MARKET
MARGIN
PROFIT
LOS
S
SETTLEMENT
ON DAILY
BASIS
SETTLEMENT
IN T+2 DAYS
`
51
How is the penalty calculated?
If there is a debit balance per segment per day, and margin amount is less than 1
lac and also margin short fall amount is less than 10% then 0.5% penalty on
shortage amount will be levied. If the shortfall is greater than 1 lac it is charged
1% of shortage amount.
Type of Amount Penalty per day in %
< Rs 1 Lac and <10% of applicable margin 0.5
≥ Rs 1 Lac and ≥10% of applicable margin 1
0.5% of penalty will be levied for first 3 days of debit. If the shortfall continues
to 4
th
day then the penalty of 5% will be levied for each day from 4
th
day
onwards.
If the shortfall is caused due to movement of 3% or more in nifty on any
trading day then the shortage penalty will be charged only if shortfall continues
to T+2 days.
51
How is the penalty calculated?
If there is a debit balance per segment per day, and margin amount is less than 1
lac and also margin short fall amount is less than 10% then 0.5% penalty on
shortage amount will be levied. If the shortfall is greater than 1 lac it is charged
1% of shortage amount.
Type of Amount Penalty per day in %
< Rs 1 Lac and <10% of applicable margin 0.5
≥ Rs 1 Lac and ≥10% of applicable margin 1
0.5% of penalty will be levied for first 3 days of debit. If the shortfall continues
to 4
th
day then the penalty of 5% will be levied for each day from 4
th
day
onwards.
If the shortfall is caused due to movement of 3% or more in nifty on any
trading day then the shortage penalty will be charged only if shortfall continues
to T+2 days.
`
52
Drafting of Letters:
Letter is as an indispensable tool of communication in business. Business letters
are used to sell the products, make inquiry about customers or prices of goods,
seek information and advice, maintain good public relation, increase goodwill
and perform a variety of other business functions. With the continuous growth
of commerce and industry, usefulness and importance of business letter are also
increasing gradually. In the Karvy I have drafted various letters:
Letter for demanding net worth certificate from clients as per SEBI
requirements.
Letter to stock exchange to update and hedge the limit of clients.
Quaterly Settlement
When does a client account need to be settled?
As per SEBI circular, the settlement of funds and / or securities shall be done
within 1 working day of the pay-out, unless client specifically authorizes the
trading member in writing to maintain a running account.
Clients whose funds and securities are maintained on a running account basis
have to be settled by members on a monthly / quarterly basis as per the client
mandate. Members should ensure that there is a gap of maximum 30/ 90 days
(as per the client mandate) between two running account settlements.
52
Drafting of Letters:
Letter is as an indispensable tool of communication in business. Business letters
are used to sell the products, make inquiry about customers or prices of goods,
seek information and advice, maintain good public relation, increase goodwill
and perform a variety of other business functions. With the continuous growth
of commerce and industry, usefulness and importance of business letter are also
increasing gradually. In the Karvy I have drafted various letters:
Letter for demanding net worth certificate from clients as per SEBI
requirements.
Letter to stock exchange to update and hedge the limit of clients.
Quaterly Settlement
When does a client account need to be settled?
As per SEBI circular, the settlement of funds and / or securities shall be done
within 1 working day of the pay-out, unless client specifically authorizes the
trading member in writing to maintain a running account.
Clients whose funds and securities are maintained on a running account basis
have to be settled by members on a monthly / quarterly basis as per the client
mandate. Members should ensure that there is a gap of maximum 30/ 90 days
(as per the client mandate) between two running account settlements.
`
53
Settlement Mechanism:
While using software and calculation of quarterly settlement any of three
criterias must be fulfilled:
Ledger balance of client must be below Rs.50000/- at the end of any day.
(Margin x 2.25%) should be greater than ledger balance on that day.
When margin balance is negative.
The date of settlement must be within 90 days. But in practical situations
of Karvy its 85 days to be on safer side.
Penalty of Rs.5000/- per client per settlement is levied on organisation if
settlement is not done .We cannot consider next payout within 30 days of
last payout.
53
Settlement Mechanism:
While using software and calculation of quarterly settlement any of three
criterias must be fulfilled:
Ledger balance of client must be below Rs.50000/- at the end of any day.
(Margin x 2.25%) should be greater than ledger balance on that day.
When margin balance is negative.
The date of settlement must be within 90 days. But in practical situations
of Karvy its 85 days to be on safer side.
Penalty of Rs.5000/- per client per settlement is levied on organisation if
settlement is not done .We cannot consider next payout within 30 days of
last payout.
`
54
ANALYSIS OF CHANGE IN TRADING HOURS
Abstract
The Stock Market industry today is a key enabler of income across economies
and societies. This industry is not only a significant contributor towards the
economic activities of countries, but also towards the growth of other industries.
In recent times, developing nations have witnessed significant transformation
within this sector due to the impact it has had on their economies. The booming
and emerging economies like India have been impacted the most by the rapid
growth of the industry in the past decade. The aim of this thesis is to research
about the affect of the recent circular regarding “Extension of trading timings in
stock exchange in equity derivative segment” by analyzing data for both Indian
Stock industries. In this report, data , interviews, literature reviews and
analysts’ reports are used to compare and discuss the contribution of different
factors influencing the industry.
Introduction
This thesis investigates the most influential effects contributing towards the
change in industry , and analyzes the nature of effect these factors have on their
respective industries. The data collected is further used to discuss how these
effect could be improved in order to better the existing conditions of the
industry
54
ANALYSIS OF CHANGE IN TRADING HOURS
Abstract
The Stock Market industry today is a key enabler of income across economies
and societies. This industry is not only a significant contributor towards the
economic activities of countries, but also towards the growth of other industries.
In recent times, developing nations have witnessed significant transformation
within this sector due to the impact it has had on their economies. The booming
and emerging economies like India have been impacted the most by the rapid
growth of the industry in the past decade. The aim of this thesis is to research
about the affect of the recent circular regarding “Extension of trading timings in
stock exchange in equity derivative segment” by analyzing data for both Indian
Stock industries. In this report, data , interviews, literature reviews and
analysts’ reports are used to compare and discuss the contribution of different
factors influencing the industry.
Introduction
This thesis investigates the most influential effects contributing towards the
change in industry , and analyzes the nature of effect these factors have on their
respective industries. The data collected is further used to discuss how these
effect could be improved in order to better the existing conditions of the
industry
`
55
Background
India is among the largest and fastest growing economies in the world today.
The Stock industry is an interesting industry to study, not only due to its
volatile nature in terms of technological breakthrough and its policies, but also
due to the high growth rate of this industry over the past few decades and the
significant contribution of the industry to the economies of the nation.India was
among the three emerging markets which gained more than 35 per cent in 2017
in dollar terms apart from Hungary and South Korea .
Though it has made the stock one of the most lucrative sectors today, it has also
had a negative effect on the other hand. For instance, India recently witnessed a
scandal in the industry (Harshad Mehta) that has changed the nature and
environment of investment flows into the country.
With the increased integration of the global markets, information originating
from different countries has a bearing on Indian securities market. While the
Asian markets are ahead of Indian time zone, the European and American
markets extend much beyond the Indian market timings. Some of the
Exchanges in these countries have adopted longer trading hours, sometimes
even extending up to 23 hours. This has facilitated market participants in these
countries to hedge their risk that might arise due to global information flow.
Extending the trade timings of the domestic exchanges may, therefore, enable
the domestic market participants to take advantage of such global information
flows. Additionally, Indian markets have been in the pursuit of matching the
best international standards and practices, and the extension of market hours
would, perhaps, be a further step in this direction.
55
Background
India is among the largest and fastest growing economies in the world today.
The Stock industry is an interesting industry to study, not only due to its
volatile nature in terms of technological breakthrough and its policies, but also
due to the high growth rate of this industry over the past few decades and the
significant contribution of the industry to the economies of the nation.India was
among the three emerging markets which gained more than 35 per cent in 2017
in dollar terms apart from Hungary and South Korea .
Though it has made the stock one of the most lucrative sectors today, it has also
had a negative effect on the other hand. For instance, India recently witnessed a
scandal in the industry (Harshad Mehta) that has changed the nature and
environment of investment flows into the country.
With the increased integration of the global markets, information originating
from different countries has a bearing on Indian securities market. While the
Asian markets are ahead of Indian time zone, the European and American
markets extend much beyond the Indian market timings. Some of the
Exchanges in these countries have adopted longer trading hours, sometimes
even extending up to 23 hours. This has facilitated market participants in these
countries to hedge their risk that might arise due to global information flow.
Extending the trade timings of the domestic exchanges may, therefore, enable
the domestic market participants to take advantage of such global information
flows. Additionally, Indian markets have been in the pursuit of matching the
best international standards and practices, and the extension of market hours
would, perhaps, be a further step in this direction.
`
56
While the benefits of increasing market hours of trading in exchanges are
evident, at the same time, issues with market wide implications such as those
pertaining to risk management, collateral management, infrastructural
constraints etc. as well as the perception of the market participants and
stakeholders would also play an important role in determining optimum market
timing.
Research Objectives
Overall Objective
The overall objective of this case study is to establish the relationship of
effects of timing change to industry and its identical factors, which attempts to
fulfil various academic desires.
Specific Objectives
The specific research objectives of this thesis are as mentioned below:
To identify the most influencing effect which may prove to be beneficial
for market.
To analyze the correlation between the selected factors and their
contribution to the industry.
To suggest ways to improve these influencing factors to the benefit of
future researchers and practitioners, in the industry of country
Delimitation of Study
Due to time constraint scope of study was restricted to focus only on some
factors as representative of industry, which could result an overlook on certain
industrial element.
56
While the benefits of increasing market hours of trading in exchanges are
evident, at the same time, issues with market wide implications such as those
pertaining to risk management, collateral management, infrastructural
constraints etc. as well as the perception of the market participants and
stakeholders would also play an important role in determining optimum market
timing.
Research Objectives
Overall Objective
The overall objective of this case study is to establish the relationship of
effects of timing change to industry and its identical factors, which attempts to
fulfil various academic desires.
Specific Objectives
The specific research objectives of this thesis are as mentioned below:
To identify the most influencing effect which may prove to be beneficial
for market.
To analyze the correlation between the selected factors and their
contribution to the industry.
To suggest ways to improve these influencing factors to the benefit of
future researchers and practitioners, in the industry of country
Delimitation of Study
Due to time constraint scope of study was restricted to focus only on some
factors as representative of industry, which could result an overlook on certain
industrial element.
`
57
Literature Review
In India
Presently, the exchange-traded equity derivatives market is open from 9:55 am
to 3:30 pm and the market timings are co-terminus with those of the underlying
cash market.
While exchange-traded currency derivatives market operates from 9:00 am
to5:00 pm, exchange-traded commodity futures market operates from 8:00 am
till 11:30 pm.
A comparison of market timings of various products / markets is given in
Table 1.
Table 1- Market timings of various products / markets in India
Product / Market Timing
Cash Market 9:55 am to 3:30 pm
Equity Derivatives 9:55 am to 3:30 pm
Currency Derivatives 9:00 am to 7.30:00 pm
Commodity Derivatives 10:00 am to 11:30 pm
Power Exchange 10:00 am to 12:00 noon
In Other Countries
The market timing followed by the exchanges for derivatives and
corresponding underlying securities is given in Table 2.
57
Literature Review
In India
Presently, the exchange-traded equity derivatives market is open from 9:55 am
to 3:30 pm and the market timings are co-terminus with those of the underlying
cash market.
While exchange-traded currency derivatives market operates from 9:00 am
to5:00 pm, exchange-traded commodity futures market operates from 8:00 am
till 11:30 pm.
A comparison of market timings of various products / markets is given in
Table 1.
Table 1- Market timings of various products / markets in India
Product / Market Timing
Cash Market 9:55 am to 3:30 pm
Equity Derivatives 9:55 am to 3:30 pm
Currency Derivatives 9:00 am to 7.30:00 pm
Commodity Derivatives 10:00 am to 11:30 pm
Power Exchange 10:00 am to 12:00 noon
In Other Countries
The market timing followed by the exchanges for derivatives and
corresponding underlying securities is given in Table 2.
`
58
Table 2- Market timings of exchanges for derivatives and underlying
Derivatives Market Underlying Market
Exchange Products traded Market hours Exchange Market
Hours
Asia-Pacific
Osaka Stock Index 9:00 am-3:10 pm Osaka Stock 9:00 am-3:10
Stock Options and 4:30 pm-8:00 pm Exchange pm JST
Exchange Futures on JST
NIKKEI 225
Tokyo
Stock
Exchange
Stock Index
Options and
Futures on
TOPIX
9:00 am-11:00
am
2:30 pm-3:10 pm
4:30 pm-7:00 pm
JST
Tokyo Stock 9:00 am-
Exchange 3:00pm JST
Hong Hang Seng Index 9:45 am - 12:30 Hong Kong 10:00 am to
Kong Futures pm 2:30 pm - Exchange 4:00 pm
Exchange 4:30 pm
Singapore Stock Index 6:30 am – 1:30 National 9:55 am-3:30
Stock Futures on Nifty pm IST Stock pm IST
Exchange Exchange
Australian Stock Index 5:10 pm-7:00 am; Australian 7:00 am-9:30
Securities Options and 9:50 am-4:30 pm Securities pm Sydney
Exchange Futures on ASX Sydney Local Exchange Local time
SPI 200 Time
US
Chicago Stock Index 8:30 am-3:15 pm New York 4:00 am-8:00
Mercentile Options and 3:30 pm-8:15am Stock pm UST
Exchange Futures on S&P UST Exchange
500
Europe
Eurex DAX futures 7:50 am-10:00 Frankfurt 9:00 am–5:30
pm (CET) Stock pm (CET)
Exchange
58
Table 2- Market timings of exchanges for derivatives and underlying
Derivatives Market Underlying Market
Exchange Products traded Market hours Exchange Market
Hours
Asia-Pacific
Osaka Stock Index 9:00 am-3:10 pm Osaka Stock 9:00 am-3:10
Stock Options and 4:30 pm-8:00 pm Exchange pm JST
Exchange Futures on JST
NIKKEI 225
Tokyo
Stock
Exchange
Stock Index
Options and
Futures on
TOPIX
9:00 am-11:00
am
2:30 pm-3:10 pm
4:30 pm-7:00 pm
JST
Tokyo Stock 9:00 am-
Exchange 3:00pm JST
Hong Hang Seng Index 9:45 am - 12:30 Hong Kong 10:00 am to
Kong Futures pm 2:30 pm - Exchange 4:00 pm
Exchange 4:30 pm
Singapore Stock Index 6:30 am – 1:30 National 9:55 am-3:30
Stock Futures on Nifty pm IST Stock pm IST
Exchange Exchange
Australian Stock Index 5:10 pm-7:00 am; Australian 7:00 am-9:30
Securities Options and 9:50 am-4:30 pm Securities pm Sydney
Exchange Futures on ASX Sydney Local Exchange Local time
SPI 200 Time
US
Chicago Stock Index 8:30 am-3:15 pm New York 4:00 am-8:00
Mercentile Options and 3:30 pm-8:15am Stock pm UST
Exchange Futures on S&P UST Exchange
500
Europe
Eurex DAX futures 7:50 am-10:00 Frankfurt 9:00 am–5:30
pm (CET) Stock pm (CET)
Exchange
`
59
Expert views on the Decision
HDFC securities Head of Compliance and Whole-time Director Ashish Rathi
said that 'the extended timing for equity derivatives in our view is an enabling
provision by SEBI for exchange timings to be between 9 am to 11.55 pm'.
"In our perspective, this move will align with commodities market timings.
However, we will have to wait for Exchanges to implement the same with prior
approval of SEBI. Whether the extended timings will be for all securities or
securities in equity derivatives market will trade only till the time underlying
equities trade and only indexes will be allowed to trade for extended hours," he
further said.
“Globally, derivative exchanges are already following the extended trading
hours. The introduction of the extended hours is a positive development and
will bring Indian market in line with the international markets,” said
Ashishkumar Chauhan, managing director and chief executive officer (CEO),
BSE.
“All the market management processes are digitised. There shouldn’t be any
transition issues for brokers. However, their fixed costs could go up as the
brokers will need more manpower. We hope an increase in volumes will offset
the expenses,” said MotilalOswal, managing director, MotilalOswal Financial
Services.
“Extended trading hours should be restricted to index derivatives alone and not
cover individual stocks, as they may be vulnerable to abuse by unscrupulous
elements,” said Rajesh Baheti, president, Anmi.
“The move will soothe the nerves of investors, who were worried about their
exposure to India in the wake of clampdown on overseas exchanges offering
domestic products. US-based investors are particularly active after 8 pm
59
Expert views on the Decision
HDFC securities Head of Compliance and Whole-time Director Ashish Rathi
said that 'the extended timing for equity derivatives in our view is an enabling
provision by SEBI for exchange timings to be between 9 am to 11.55 pm'.
"In our perspective, this move will align with commodities market timings.
However, we will have to wait for Exchanges to implement the same with prior
approval of SEBI. Whether the extended timings will be for all securities or
securities in equity derivatives market will trade only till the time underlying
equities trade and only indexes will be allowed to trade for extended hours," he
further said.
“Globally, derivative exchanges are already following the extended trading
hours. The introduction of the extended hours is a positive development and
will bring Indian market in line with the international markets,” said
Ashishkumar Chauhan, managing director and chief executive officer (CEO),
BSE.
“All the market management processes are digitised. There shouldn’t be any
transition issues for brokers. However, their fixed costs could go up as the
brokers will need more manpower. We hope an increase in volumes will offset
the expenses,” said MotilalOswal, managing director, MotilalOswal Financial
Services.
“Extended trading hours should be restricted to index derivatives alone and not
cover individual stocks, as they may be vulnerable to abuse by unscrupulous
elements,” said Rajesh Baheti, president, Anmi.
“The move will soothe the nerves of investors, who were worried about their
exposure to India in the wake of clampdown on overseas exchanges offering
domestic products. US-based investors are particularly active after 8 pm
`
60
India time. The latest move will cater to them,” said a hedge fund manager
based in Singapore.
Rahul Jain, Head of Retail Advisory, Edelweiss Wealth Management, says Yes
Extension of trading hours will help drive volumes, which helps market
liquidity, increasing confidence of smaller participants.
SudipBandyopadhyay Group Chairman, Inditrade (JRG) Group of
Companies,says Yes If India is to become a global financial powerhouse and if
exchanges are to become truly international, we need to have extended trading
tours.
Sandip Raichura, Head, Retail, PrabhudasLilladher, says No
A small trader has a defined risk appetite and that doesn’t change because more
time is available. He will be looking at price levels, not the time.
Limitations & Constraints
Increase in both fixed and variable cost as more infrastructure is required and
shift wise working so more employee turnover cost.The cost of the company is
expected to rise between 25% to 35% (IBEF) depending upon the size and
infrastructure of the company but the expected profit may not go up.
Cordination will prove to be one of the major problem for the company as the
buying and selling can be done by different personnel in multiple shift.This will
prove to be challenge for broking houses and members to properly settle the
transactions of client.
60
India time. The latest move will cater to them,” said a hedge fund manager
based in Singapore.
Rahul Jain, Head of Retail Advisory, Edelweiss Wealth Management, says Yes
Extension of trading hours will help drive volumes, which helps market
liquidity, increasing confidence of smaller participants.
SudipBandyopadhyay Group Chairman, Inditrade (JRG) Group of
Companies,says Yes If India is to become a global financial powerhouse and if
exchanges are to become truly international, we need to have extended trading
tours.
Sandip Raichura, Head, Retail, PrabhudasLilladher, says No
A small trader has a defined risk appetite and that doesn’t change because more
time is available. He will be looking at price levels, not the time.
Limitations & Constraints
Increase in both fixed and variable cost as more infrastructure is required and
shift wise working so more employee turnover cost.The cost of the company is
expected to rise between 25% to 35% (IBEF) depending upon the size and
infrastructure of the company but the expected profit may not go up.
Cordination will prove to be one of the major problem for the company as the
buying and selling can be done by different personnel in multiple shift.This will
prove to be challenge for broking houses and members to properly settle the
transactions of client.
`
61
Permission is subject to stock exchange and clearing corporation in order to
have proper place for risk management and infrastructure commensurate.This
may lead to increase in statutory compliance which may prove to be hurdle. At
present in India 23% of the business houses avoid compliance by using unfair
sources ( Business Association of India).
Issues for Consideration
The salient issues that need to be considered may include the following:
Risk Management
In case the market hours are increased, appropriate risk management
systems need to be put in place. One of the aspects of the risk
management framework relates to updation of volatility for VaR
margin calculation. With the longer market hours, the volatility needs
to be updated more times.
Presently, volatility is updated five times during the period of trading
with the first updation taking place at the beginning of trading hours,
i.e., 9:55 am and subsequently at 11:00 am, 12:30 pm, 2:00 pm and
3:30 pm. However, with the extension of market hours, it may be
required to update volatility at appropriate times during the period of
trading.
61
Permission is subject to stock exchange and clearing corporation in order to
have proper place for risk management and infrastructure commensurate.This
may lead to increase in statutory compliance which may prove to be hurdle. At
present in India 23% of the business houses avoid compliance by using unfair
sources ( Business Association of India).
Issues for Consideration
The salient issues that need to be considered may include the following:
Risk Management
In case the market hours are increased, appropriate risk management
systems need to be put in place. One of the aspects of the risk
management framework relates to updation of volatility for VaR
margin calculation. With the longer market hours, the volatility needs
to be updated more times.
Presently, volatility is updated five times during the period of trading
with the first updation taking place at the beginning of trading hours,
i.e., 9:55 am and subsequently at 11:00 am, 12:30 pm, 2:00 pm and
3:30 pm. However, with the extension of market hours, it may be
required to update volatility at appropriate times during the period of
trading.
`
62
Posting of Margins
Early opening of the market would require the trading
members/clients wanting to take exposure to bring in additional
capital for margining/collateral purposes. Further, as margins for VaR
purposes get adjusted out of the liquid net worth deposited with the
Exchange, any adverse movement in the market caused by increase in
volatility may result in erosion of the liquid net worth / collateral kept
with the Exchange leading to temporary shutting down of terminals of
the trading members.
The members may, therefore, be required to put up higher margins,
since the timing of the opening of clearing banks/custodians will not
coincide with the proposed opening time of the market so as to enable
fund transfer and mobilization of additional margin/collateral
requirement.
Infrastructural Constraints
Extension of trading hours may put pressure on infrastructure for the
Exchanges as well as market intermediaries. Especially, broking firms
may have to incur additional operating costs besides causing
inconvenience to their employees. Moreover, in order to obligate the
margin / collateral requirement of the investors, the banks / Financial
Institutions may also need to keep their offices open for the extended
duration. As regards investors, they would also have to put in extra
effort to keep a track of the market movements for extended market
hours. The existing technology may also need to be upgraded to
handle the resultant rise in volumes, if any.
62
Posting of Margins
Early opening of the market would require the trading
members/clients wanting to take exposure to bring in additional
capital for margining/collateral purposes. Further, as margins for VaR
purposes get adjusted out of the liquid net worth deposited with the
Exchange, any adverse movement in the market caused by increase in
volatility may result in erosion of the liquid net worth / collateral kept
with the Exchange leading to temporary shutting down of terminals of
the trading members.
The members may, therefore, be required to put up higher margins,
since the timing of the opening of clearing banks/custodians will not
coincide with the proposed opening time of the market so as to enable
fund transfer and mobilization of additional margin/collateral
requirement.
Infrastructural Constraints
Extension of trading hours may put pressure on infrastructure for the
Exchanges as well as market intermediaries. Especially, broking firms
may have to incur additional operating costs besides causing
inconvenience to their employees. Moreover, in order to obligate the
margin / collateral requirement of the investors, the banks / Financial
Institutions may also need to keep their offices open for the extended
duration. As regards investors, they would also have to put in extra
effort to keep a track of the market movements for extended market
hours. The existing technology may also need to be upgraded to
handle the resultant rise in volumes, if any.
`
63
Other Segments / Products
On most of the international exchanges, the trade timing of the
derivatives market is independent of the trade timing of the cash
market. In other words, the derivative segment is open even during
those time periods in a day when the underlying cash market is closed.
Given the above, extending the trade timing either in the derivatives
segment or the cash segment or both the segments could be thought of.
Extending the market timing of the derivative segment without the
underlying cash market being open may limit arbitrage opportunities.
While this aspect may be particularly true in the case of individual
stock-based derivative products, this may not be much relevant for
index-based derivative products.
Alternatively, therefore, within a segment there could be different
trade timings for different products. For instance, to begin with,
extending the trade timings for index products in the derivatives
segment may be considered while the other products in the derivatives
segment and the cash segment continue to trade as per the existing
time schedule.
Total Trading Hours / Number of Sessions
On some of the international exchanges trading in the derivatives is
conducted for approximately 10-15 hours in a day, while in a few
cases market timings go up to 24 hours, through multiple trading
sessions. In India, however, trading takes place for 5
1
/2 hours in a
single trading session. With extension of trade timing, there may be a
case for dividing the total trade time into different trading sessions.
63
Other Segments / Products
On most of the international exchanges, the trade timing of the
derivatives market is independent of the trade timing of the cash
market. In other words, the derivative segment is open even during
those time periods in a day when the underlying cash market is closed.
Given the above, extending the trade timing either in the derivatives
segment or the cash segment or both the segments could be thought of.
Extending the market timing of the derivative segment without the
underlying cash market being open may limit arbitrage opportunities.
While this aspect may be particularly true in the case of individual
stock-based derivative products, this may not be much relevant for
index-based derivative products.
Alternatively, therefore, within a segment there could be different
trade timings for different products. For instance, to begin with,
extending the trade timings for index products in the derivatives
segment may be considered while the other products in the derivatives
segment and the cash segment continue to trade as per the existing
time schedule.
Total Trading Hours / Number of Sessions
On some of the international exchanges trading in the derivatives is
conducted for approximately 10-15 hours in a day, while in a few
cases market timings go up to 24 hours, through multiple trading
sessions. In India, however, trading takes place for 5
1
/2 hours in a
single trading session. With extension of trade timing, there may be a
case for dividing the total trade time into different trading sessions.
`
64
Advantages
The need for extension of market hours includes the following:
With the increased integration of the global markets, information
originating from one country / market has a bearing on the markets in
other country / market and India is no exception to this phenomenon. It
is important to align Indian markets, as far as possible, with those of the
international markets to facilitate the assimilation of any economic
information that may flow in from other global markets. One such
alignment could be in the area of market timing.
Quick and effective assimilation of information makes markets more
efficient in terms of better price discovery, reduction in volatility and
impact cost. The extension of market hours may help in effectively
assimilating information and thereby make Indian markets efficient,
benefiting Indian investors.
In a world where different exchanges are competing with each other to
increase participation, it is imperative that the Indian markets align
themselves to global markets to attract such trading interest. Extension of
market hours would enable market participants to execute trading
strategies in Indian markets based on information flowing in, which
otherwise would have been executed outside India.
The extension in market hours enables participants to take positions over
a longer time window. This enables them to take advantage of market
movements overseas.
64
Advantages
The need for extension of market hours includes the following:
With the increased integration of the global markets, information
originating from one country / market has a bearing on the markets in
other country / market and India is no exception to this phenomenon. It
is important to align Indian markets, as far as possible, with those of the
international markets to facilitate the assimilation of any economic
information that may flow in from other global markets. One such
alignment could be in the area of market timing.
Quick and effective assimilation of information makes markets more
efficient in terms of better price discovery, reduction in volatility and
impact cost. The extension of market hours may help in effectively
assimilating information and thereby make Indian markets efficient,
benefiting Indian investors.
In a world where different exchanges are competing with each other to
increase participation, it is imperative that the Indian markets align
themselves to global markets to attract such trading interest. Extension of
market hours would enable market participants to execute trading
strategies in Indian markets based on information flowing in, which
otherwise would have been executed outside India.
The extension in market hours enables participants to take positions over
a longer time window. This enables them to take advantage of market
movements overseas.
`
65
Bibliography
https://www.google.co.in/search?q=karvy+comtrade&source=lnms&sa=X&ved=0ah
UKEwit0fuCqeLUAhVJE5QKHbGgB6kQ_ AUIBSgA&biw=1242&bih=557&dpr=1.
http://economictimes.indiatimes.com/markets/commodities/merger-of-fmc-with-sebi-
restored-confidence-on-regulatory-oversight-of-
commodities/articleshow/52442025.cms
https://capitalmind.in/the-nsel-scam-and-history/
https://en.wikipedia.org/wiki/NSEL_case
http://indianexpress.com/article/explained/merger-of-sebi-and-fmc-what-it-means-for-
market
players/#comments:
http://www.livemint.com/Money/dJ4NV0iyuOAA4omp2nFi2H/Tax-impact-of-the-
FMCSebi-merger-for commodity-traders.html
http://int.search.myway.com/search/GGmain.jhtml?pn=1&ct=ARS&cb=Y6&p2=%5EY6
%5Exdm270%5ETTAB
02%5Ein&qid=ddd05398c4ed47948aaae2688e6cada4&n=781c2e68&ptb=3F3B8859-
AAB0-437F-849B.
65
Bibliography
https://www.google.co.in/search?q=karvy+comtrade&source=lnms&sa=X&ved=0ah
UKEwit0fuCqeLUAhVJE5QKHbGgB6kQ_ AUIBSgA&biw=1242&bih=557&dpr=1.
http://economictimes.indiatimes.com/markets/commodities/merger-of-fmc-with-sebi-
restored-confidence-on-regulatory-oversight-of-
commodities/articleshow/52442025.cms
https://capitalmind.in/the-nsel-scam-and-history/
https://en.wikipedia.org/wiki/NSEL_case
http://indianexpress.com/article/explained/merger-of-sebi-and-fmc-what-it-means-for-
market
players/#comments:
http://www.livemint.com/Money/dJ4NV0iyuOAA4omp2nFi2H/Tax-impact-of-the-
FMCSebi-merger-for commodity-traders.html
http://int.search.myway.com/search/GGmain.jhtml?pn=1&ct=ARS&cb=Y6&p2=%5EY6
%5Exdm270%5ETTAB
02%5Ein&qid=ddd05398c4ed47948aaae2688e6cada4&n=781c2e68&ptb=3F3B8859-
AAB0-437F-849B.
`
66
Annexures:
Weekly Reports:
Weekly Report for Week ending 5
th
May 2018
Application
Based
Learning in
Respective
Specialisation
Faculty
Remarks
Summer Internship Programme (On the Job Training / Research Project)
Name: RAHUL JAIN
Company: Karvy Comtarde Ltd
Location: Hyderabad
Industry Mentor Details: Mr.Malay Hazra
Faculty Mentor: Prof.Ruchi Arora
Project Title:
On the Job Training Research Project
Weekly
Activity
Assigned
(Give
Details)
Status of
Activities
Assigned
Learning from the
activity/activities
assigned / Work
accomplished
Status of
the
Project
Report
Learnings from the
weekly project
activity
Induction
Session
Completed
We had a session
with sir regarding
the following
topics:
What exactly
commodity
trading is?
About
commodity
exchanges in
India.
SEBI
circulars and
interpretation
Companies
position in the
market.
Applicable
rules and
regulation for
organisation
Industry
Overview
explain in 200
words what you
have done *
Audit of cash
Credit
transaction
FY 17-18
Work in
Progress
Researched about
the various
sources of funds
from which
clients invest
money in the
commodity
market and also
Company
Profile
specify what tools
and technique were
used during that
period *
66
Annexures:
Weekly Reports:
Weekly Report for Week ending 5
th
May 2018
Application
Based
Learning in
Respective
Specialisation
Faculty
Remarks
Summer Internship Programme (On the Job Training / Research Project)
Name: RAHUL JAIN
Company: Karvy Comtarde Ltd
Location: Hyderabad
Industry Mentor Details: Mr.Malay Hazra
Faculty Mentor: Prof.Ruchi Arora
Project Title:
On the Job Training Research Project
Weekly
Activity
Assigned
(Give
Details)
Status of
Activities
Assigned
Learning from the
activity/activities
assigned / Work
accomplished
Status of
the
Project
Report
Learnings from the
weekly project
activity
Induction
Session
Completed
We had a session
with sir regarding
the following
topics:
What exactly
commodity
trading is?
About
commodity
exchanges in
India.
SEBI
circulars and
interpretation
Companies
position in the
market.
Applicable
rules and
regulation for
organisation
Industry
Overview
explain in 200
words what you
have done *
Audit of cash
Credit
transaction
FY 17-18
Work in
Progress
Researched about
the various
sources of funds
from which
clients invest
money in the
commodity
market and also
Company
Profile
specify what tools
and technique were
used during that
period *
`
67
try to convert it
from black to
white.
Reconcile
the chaques
which were
returned by
bank
Work in
Progress
This process gave
the learning of the
working of the
software “Shilpi”
and checking the
reasons for the
difference.
Literature
Review
Specify source of
information *
Questionna
ire Design
and
Finalizatio
n
Data
Collection
Data
Analysis
Report
Writing
Weekly Report ending on 18
th
May 2018
Summer Internship Programme (On the Job Training / Research Project)
Name: RAHUL JAIN
Company: Karvy Comtrade Ltd
Location: Hyderabad
Industry Mentor Details: Mr. Malay Hazra
Faculty Mentor: Prof. Ruchi Arora
Project Title: SEBI circulars for change in trading timings
On the Job Training Research Project
Weekly
Activity
Assigned (Give
Details)
Status of
Activities
Assigned
Learning from the
activity/activities
assigned / Work
accomplished
Status of the Project
Report
As the topic of mine is
latest so it will take time to
get information on it
67
try to convert it
from black to
white.
Reconcile
the chaques
which were
returned by
bank
Work in
Progress
This process gave
the learning of the
working of the
software “Shilpi”
and checking the
reasons for the
difference.
Literature
Review
Specify source of
information *
Questionna
ire Design
and
Finalizatio
n
Data
Collection
Data
Analysis
Report
Writing
Weekly Report ending on 18
th
May 2018
Summer Internship Programme (On the Job Training / Research Project)
Name: RAHUL JAIN
Company: Karvy Comtrade Ltd
Location: Hyderabad
Industry Mentor Details: Mr. Malay Hazra
Faculty Mentor: Prof. Ruchi Arora
Project Title: SEBI circulars for change in trading timings
On the Job Training Research Project
Weekly
Activity
Assigned (Give
Details)
Status of
Activities
Assigned
Learning from the
activity/activities
assigned / Work
accomplished
Status of the Project
Report
As the topic of mine is
latest so it will take time to
get information on it
`
68
This was an
task which took
around three
weeks to
complete as its
was regarding
the quarterly
settlement for
the margins of
the client which
is to be done as
per SEBI
guidelines.
Work in progress
Get to know about
the mechanism for
quarterly settlement
of the accounts of
client with respect
to SEBI by laws.
Industry Overview
Contract note
was audited on
sample basis in
of various stock
exchanges.
Examine around
20 contract notes
of each stock
exchange per
quarter.
Completed
Acquired
knowledge
regarding the
various charges and
fees .
Company Profile
Reviewed the
audit report of
SEBI regarding
the information
provided is true
or not.
Completed
The checks and
controls which need
to be reported by
SEBI.
Literature Review
Data Collection
Data Analysis
Report Writing
68
This was an
task which took
around three
weeks to
complete as its
was regarding
the quarterly
settlement for
the margins of
the client which
is to be done as
per SEBI
guidelines.
Work in progress
Get to know about
the mechanism for
quarterly settlement
of the accounts of
client with respect
to SEBI by laws.
Industry Overview
Contract note
was audited on
sample basis in
of various stock
exchanges.
Examine around
20 contract notes
of each stock
exchange per
quarter.
Completed
Acquired
knowledge
regarding the
various charges and
fees .
Company Profile
Reviewed the
audit report of
SEBI regarding
the information
provided is true
or not.
Completed
The checks and
controls which need
to be reported by
SEBI.
Literature Review
Data Collection
Data Analysis
Report Writing
`
69
Weekly Report for Week ending _________
Application
Based
Learning in
Respective
Specialisation
Faculty
Remarks
Summer Internship Programme (On the Job Training / Research Project)
Name:
Company:
Location:
Industry Mentor Details:
Faculty Mentor:
Project Title:
On the Job Training Research Project
Weekly
Activity
Assigned
(Give
Details)
Status of
Activities
Assigned
Learning from
the
activity/activitie
s assigned /
Work
accomplished
Status of the
Project Report
Learnings from the
weekly project
activity
Coordinatin
g with
regional
head for
collection
of Net
Worth
Cerificate
Completed
How to
coordinate with
people of
different
regions in order
to demand
something
Industry
Overview
explain in 200 words what
you have done *
Briefing of
the
company
Preparation
Of Money
Laundering
Act
(PMLA)
report
To be
completed
on daily
basis
Different
terminology
used by the
company
Different
parameters used
by the company
to check
fraudulent
activities
Company
Profile
specify what tools and
technique were used during
that period *
Upload of
e-KYC
Form on
website
To be
completed
on daily
basis
e-kyc format,
how to upload
the form on
company’s
website
Literature
Review
Specify source of
information *
Questionnaire
Design and
Finalization
Data Collection
Data Analysis
Report Writing
69
Weekly Report for Week ending _________
Application
Based
Learning in
Respective
Specialisation
Faculty
Remarks
Summer Internship Programme (On the Job Training / Research Project)
Name:
Company:
Location:
Industry Mentor Details:
Faculty Mentor:
Project Title:
On the Job Training Research Project
Weekly
Activity
Assigned
(Give
Details)
Status of
Activities
Assigned
Learning from
the
activity/activitie
s assigned /
Work
accomplished
Status of the
Project Report
Learnings from the
weekly project
activity
Coordinatin
g with
regional
head for
collection
of Net
Worth
Cerificate
Completed
How to
coordinate with
people of
different
regions in order
to demand
something
Industry
Overview
explain in 200 words what
you have done *
Briefing of
the
company
Preparation
Of Money
Laundering
Act
(PMLA)
report
To be
completed
on daily
basis
Different
terminology
used by the
company
Different
parameters used
by the company
to check
fraudulent
activities
Company
Profile
specify what tools and
technique were used during
that period *
Upload of
e-KYC
Form on
website
To be
completed
on daily
basis
e-kyc format,
how to upload
the form on
company’s
website
Literature
Review
Specify source of
information *
Questionnaire
Design and
Finalization
Data Collection
Data Analysis
Report Writing
`
70
Weekly Report for Week ending 1
st
June 2018
Application
Based
Learning in
Respective
Specialisation
Faculty
Remarks
Summer Internship Programme (On the Job Training / Research Project)
Name:
Company:
Location:
Industry Mentor Details:
Faculty Mentor:
Project Title:
On the Job Training Research Project
Weekly
Activity
Assigned
(Give
Details)
Status of
Activities
Assigned
Learning from
the
activity/activit
ies assigned /
Work
accomplished
Status of the
Project Report
Learnings from the
weekly project
activity
Funds pay in
& Pay out
process
Learned about
the entire
procedure
Industry
Overview
explain in 200 words what
you have done *
A daily
report was
maintained
to indentify
the no. of e-
kyc and
physical kyc
Analysis of
Risk
management
report,
Short/ excess
margin of the
client, ledger
balances etc
Company
Profile
specify what tools and
technique were used during
that period *
Payout
Reduction
Verification
Checking the
cash balance
of the clients
Literature
Review
Specify source of
information *
Questionnaire
Design and
Finalization
Data Collection
Data Analysis
Report Writing
70
Weekly Report for Week ending 1
st
June 2018
Application
Based
Learning in
Respective
Specialisation
Faculty
Remarks
Summer Internship Programme (On the Job Training / Research Project)
Name:
Company:
Location:
Industry Mentor Details:
Faculty Mentor:
Project Title:
On the Job Training Research Project
Weekly
Activity
Assigned
(Give
Details)
Status of
Activities
Assigned
Learning from
the
activity/activit
ies assigned /
Work
accomplished
Status of the
Project Report
Learnings from the
weekly project
activity
Funds pay in
& Pay out
process
Learned about
the entire
procedure
Industry
Overview
explain in 200 words what
you have done *
A daily
report was
maintained
to indentify
the no. of e-
kyc and
physical kyc
Analysis of
Risk
management
report,
Short/ excess
margin of the
client, ledger
balances etc
Company
Profile
specify what tools and
technique were used during
that period *
Payout
Reduction
Verification
Checking the
cash balance
of the clients
Literature
Review
Specify source of
information *
Questionnaire
Design and
Finalization
Data Collection
Data Analysis
Report Writing
`
71
Weekly Report for Week ending 8
th
June
Application
Based
Learning in
Respective
Specialisation
Faculty
Remarks
Summer Internship Programme (On the Job Training / Research Project)
Name:
Company:
Location:
Industry Mentor Details:
Faculty Mentor:
Project Title:
On the Job Training Research Project
Weekly
Activity
Assigned
(Give
Details)
Status of
Activities
Assigned
Learning from
the
activity/activitie
s assigned /
Work
accomplished
Status of the
Project Report
Learnings from the
weekly project
activity
Work
assigned
was to
inspect all
the
Corporate
KYC of
physical
forms of
given
clients Completed
Get to know
what the
documents are
required for
opening a
corporate
DEMAT
account & all
the other
compliances to
be fulfilled.
Industry
Overview
explain in 200 words what
you have done *
Inspection
of old
corporate
kyc Completed
About the
opening of
corporate
account and
requirement of
documents
Company
Profile
specify what tools and
technique were used during
that period *
Literature
Review
Specify source of
information *
Questionnaire
Design and
Finalization
Data Collection
Data Analysis
Report Writing
71
Weekly Report for Week ending 8
th
June
Application
Based
Learning in
Respective
Specialisation
Faculty
Remarks
Summer Internship Programme (On the Job Training / Research Project)
Name:
Company:
Location:
Industry Mentor Details:
Faculty Mentor:
Project Title:
On the Job Training Research Project
Weekly
Activity
Assigned
(Give
Details)
Status of
Activities
Assigned
Learning from
the
activity/activitie
s assigned /
Work
accomplished
Status of the
Project Report
Learnings from the
weekly project
activity
Work
assigned
was to
inspect all
the
Corporate
KYC of
physical
forms of
given
clients Completed
Get to know
what the
documents are
required for
opening a
corporate
DEMAT
account & all
the other
compliances to
be fulfilled.
Industry
Overview
explain in 200 words what
you have done *
Inspection
of old
corporate
kyc Completed
About the
opening of
corporate
account and
requirement of
documents
Company
Profile
specify what tools and
technique were used during
that period *
Literature
Review
Specify source of
information *
Questionnaire
Design and
Finalization
Data Collection
Data Analysis
Report Writing
`
72
Weekly Report for as on 22
nd
June 2018
Application
Based
Learning in
Respective
Specialisation
Faculty
Remarks
Summer Internship Programme (On the Job Training / Research Project)
Name: RAHUL JAIN
Company: Karvy Comtrade Ltd
Location: Hyderabad
Industry Mentor Details: Mr. Malay Hazra
Faculty Mentor: Prof. Ruchi Arora
Project Title: SEBI circulars for change in Trading timings
On the Job Training Research Project
Weekly
Activity
Assigned
(Give Details)
Status
of
Activi
ties
Assig
ned
Learning from
the
activity/activit
ies assigned /
Work
accomplished
Status of the
Project Report
As the topic of
mine is latest so it
will take time to get
information on it
-
This was an
task which
took around
three weeks to
complete as its
was regarding
the quarterly
settlement for
the margins of
the client
which is to be
done as per
SEBI
guidelines.
Comp
leted
Get to know
about the
mechanism
for quarterly
settlement of
the accounts
of client with
respect to
SEBI by laws.
Industry
Overview
Went to the
office on
Saturday in
order to take
understanding
about placing
order on live
system and
understanding
the
mechanism
Work
in
progre
ss
Acquired
knowledge
regarding the
various types
of margins
,credit limit
provided to
client and
trading as
well.
Company
Profile
Cordinating
with IT team
on daily basis
in order to
develop some
new checks in
the software to
avoid
mistakes.
Work
in
progre
ss
This will help
me out to
understand the
software
outlook an
various
systems
needed for
more effective
Literature
Review
72
Weekly Report for as on 22
nd
June 2018
Application
Based
Learning in
Respective
Specialisation
Faculty
Remarks
Summer Internship Programme (On the Job Training / Research Project)
Name: RAHUL JAIN
Company: Karvy Comtrade Ltd
Location: Hyderabad
Industry Mentor Details: Mr. Malay Hazra
Faculty Mentor: Prof. Ruchi Arora
Project Title: SEBI circulars for change in Trading timings
On the Job Training Research Project
Weekly
Activity
Assigned
(Give Details)
Status
of
Activi
ties
Assig
ned
Learning from
the
activity/activit
ies assigned /
Work
accomplished
Status of the
Project Report
As the topic of
mine is latest so it
will take time to get
information on it
-
This was an
task which
took around
three weeks to
complete as its
was regarding
the quarterly
settlement for
the margins of
the client
which is to be
done as per
SEBI
guidelines.
Comp
leted
Get to know
about the
mechanism
for quarterly
settlement of
the accounts
of client with
respect to
SEBI by laws.
Industry
Overview
Went to the
office on
Saturday in
order to take
understanding
about placing
order on live
system and
understanding
the
mechanism
Work
in
progre
ss
Acquired
knowledge
regarding the
various types
of margins
,credit limit
provided to
client and
trading as
well.
Company
Profile
Cordinating
with IT team
on daily basis
in order to
develop some
new checks in
the software to
avoid
mistakes.
Work
in
progre
ss
This will help
me out to
understand the
software
outlook an
various
systems
needed for
more effective
Literature
Review
`
73
and efficient
working ,
Creation of
proper
automatic
system for the
updation of
diamond
contract for
the client
Comp
leted
Researched
about the
diamond
trading and its
system of
delivery.
Questionnaire
Design and
Finalization
Data Collection
Data Analysis
Report Writing
73
and efficient
working ,
Creation of
proper
automatic
system for the
updation of
diamond
contract for
the client
Comp
leted
Researched
about the
diamond
trading and its
system of
delivery.
Questionnaire
Design and
Finalization
Data Collection
Data Analysis
Report Writing
`
74
Mid Evaluation Form:
74
Mid Evaluation Form:
`
75
75
`
76
76
`
77
77
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