CAPITAL MARKET FINANCING
Loans under this segment are typically short-term advances and primarily cater to the finance requirements of clients under broking and wealth management businesses. Strong synergies within our businesses enables cross-selling of these financial products across wealth management and investment banking clients. Our Capital Market Financing portfolio includes the following products:
These loans facilitate our clients to capitalize on their investments by providing liquidity against investments in shares, mutual funds and bonds, without the need to sell such securities. The product includes a portfolio of loan against mutual funds, loan against shares, loan against securities and loan against bonds. Loans may be business loans, or loans to meet short term working capital requirements or personal obligations.
Margin Financing allows our clients to fund their settlement obligations of the stock exchanges. This facilitates a client to make investments in equity markets without having to deploy cash collateral towards the investment. A client can also take a leveraged position on the basis of the client’s existing investments.
ESOP funding is offered to the employees of various corporates to finance their employee stock options of the approved portfolio value, eliminating the need to arrange liquidity for this purpose while exercising ESOPs.
Broker funding is offered to an existing stock exchange broker, it includes financing to meet working capital requirements against the collateral of existing investments.
It enables clients to participate in an IPO of equity shares, by providing a small margin and the balance is funded by us. This facility grants leverage to retail clients to apply for a larger application size in public issues and procure higher allotments. IPO funding is for extremely short tenures, and is strictly advanced for the limited purpose of financing an application towards an IPO subscription.
This is offered to individual categories of borrowers with or without any collateral for the purpose of individual short-term personal needs as may be acceptable including to meet their various personal expenses/cash flow requirements and his/ her tax liabilities.
This is offered to benefit from spread on gap opening.
This product enables customers to take the spread benefit between the cash and future and options/derivatives positions, both in equities and commodities, where the positions would be hedged.