KARVY - Bonds & FDs

Bonds - FDs

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Fixed Income Securities & Trading (K-FIST)

Background - It was started in December 2002 with a roll out from 7 dedicated centers of Karvy. The Retail Debt Market division which is centralized at the HO in Hyderabad provides fixed income products to its clients and is primarily a fund based activity. The deal sizes vary from Rs.10,000 to Rs.5 crores.

Products - Central Government securities, State Development Loans, State Guaranteed bonds, Public Sector Undertaking Bonds, Financial Institution Bonds, and Bank bonds of SLR/Non-SLR category, both taxable and tax-free.

Target clients - Provident Fund Trusts, Educational & Religious trusts, charitable trusts, and Co-operative banks, Regional Rural Banks, Corporates, and High Net worth Individuals

Standard Operating Procedures - Based on the specific needs of the prospects Quotes of all category of bonds are sent. The selection of instrument is done and post negotiation (if any) the settlement date is finalized. Contract notes are exchanged and written confirmations are obtained before initiating the trade settlement. On the agreed settlement date, the funds and securities are exchanged between the parties. Primarily all the trades are in the electronic mode only.

The Wholesale Debt Market division is centralized at Mumbai and is a voice based order matching activity which is fee based. The deal size is a minimum of Rs.5 cr. And the reporting is done on the NSE.

Target clients - Co-operative banks, commercial banks, Corporates, Financial Institutions, Insurance companies and Asset Management Companies.

Standard Operating Procedures - The dealers generate 2-way quotes during the trading hours and match the institutional buyers and sellers. The deal contract notes are generated and exchanged between the 2 parties. The fees are collected by raising debit notes on a monthly basis.