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Capital Markets - Products

  
 
 


Capital Market - Products
 
Loans are provided against marketable shares to individual and corporate clients on the following terms:
 
Tenure Up to 365 days with an option to prepay with mutually agreed repayment notice
Security As per list of approved securities 
Loan amount Minimum Rs. 1 Crore
Interest rate Competitive
Margin 30% and above
Documentation Standard Loan Documents with PDC 
Custodian Charges At actual
 

Benefits
 Liquidity without selling the long term investments held
 Maximize gains on existing investments
 Take advantage of investment opportunities
 Easier and faster processing
This facility enables an individual investor to buy stocks even if he cannot put up the entire amount of money. Under this facility, the investor needs to pay only a part of the total purchase value of each scrip, with the rest being provided by Aditya Birla Finance. The investor also has to pay interest on the money brought in by the financier for the purchases made by the individual. The loan or the financed amount would be recovered from the investor by liquidating the stocks in case the investor is unable to meet the ongoing (or maintenance - MTM) margin requirement.
 
Loans are provided against open-ended mutual fund units to investors, Members of Stock Exchanges, Corporates and Trusts. Lien is created in favor of ABFL on the MF units held by the borrower on the following terms: 
 
Tenure Upto 365 days
Security As per list of approved mutual fund
Loan amount Minimum Rs. 1 Crore
Interest rate Competitive
Margin 15% to 30%
Documentation and Custodian charges Standard Loan Documents with PDC and custodian charges at Actual for listed MF units and NIL otherwise.
 

Benefits
 Higher Liquidity
 Leverage your existing investments
 Take advantage of investment opportunities
 Easier and faster processing
This product offers an excellent opportunity to leverage your own funds in primary markets and thereby increase the allotment quantum manifold. We provide loans for subscription in the IPOs of equity / equity linked instruments. The investors have to invest only the margin amount and the balance amount is financed by Aditya Birla Finance. Our 'exclusive' IPO financing scheme provides a single window clearance for application, banking and follow up.
 
Tenure 15-30 days
Loan amount Minimum Rs. 1 Crore
Interest rate Competitive
Margin Case to case basis depending upon expected allotment of shares
Other charges As applicable
 

Benefits
 Maximize gains on your existing funds available for investments
 Take advantage of investment opportunities
 Procure higher allotments in IPO
 Easier and faster processing
In order to enable investors to take care of unscheduled financing needs, we provide a line of credit against marketable shares and /or mutual fund units. The investors can avail the disbursement and make the repayment as per their requirements. Interest will be calculated only for the actual number of days of funds utilized. The following terms would apply:
 
Tenure Upto 365 days
Security As per approved list of shares, mutual fund and AAA rated bonds
Loan amount Minimum Rs. 1 Crore
Margin 10% to 66%
Interest rate Competitive
Processing Fees As applicable
Documentation & Custodian Charges Standard Loan Documents with PDC and custodian charges at Actual
 

Benefits
 Liquidity without selling your long term investments
 Maximize gains on your existing investments
 Take advantage of investment opportunities
 Easier and faster processing
 Pay interest only for the period of actual funds utilizations

We provide loans against Rated Bonds on the following terms:
 
Tenure Upto 365 days
Security AAA rated bonds
Loan amount Minimum Rs. 1 Crore
Margin 10% to 30%
Interest rate Competitive
Processing Fees As applicable
Documentation & Custodian Charges Standard Loan Documents with PDC and custodian charges at Actual

We provide loans against marketable shares to promoters/companies in promoter group on the following terms:
 
Tenure Upto 365 days
Security Shares  held by Promoter & companies in promoter Group
Loan amount Minimum Rs. 1 Crore
Margin 30% and above
Interest rate Competitive
Documentation Standard Loan Documents with PDC
Custodian charges At Actual

We provide loans to individual and corporate clients to subscribe to Open offer/buy-back offer of reputed companies on the following terms:
 
Tenure 30-45 days
Security Approved list of securities and MF units
Loan amount Minimum Rs. 1 Crore
Margin Case to case basis depending upon expected acceptance of shares by the acquirer
Interest rate Competitive
Documentation Standard Loan Documents with PDC
Custodian charges At Actual

We provide loans to employees of companies issuing ESOPS, to subscribe to ESOP on the following terms:
 
Tenure Up to 365 days
Loan amount Minimum Rs. 1 Crore
Margin Case to case basis
Interest rate Competitive
Other Charges As applicable

We provide loans against the life insurance policies on the following terms:
 
Tenure Upto 365 days
Security Life Insurance policies having surrender value
Loan amount Minimum Rs. 1 Crore
Margin 10% - 20% of Surrender Value or applicable MF margin for (unit linked) NAV based policies
Interest rate Competitive
Fees/Documentation Charges Standard loan documents with PDC. Charges as applicable

‘Cool Cash’ provides investors an opportunity to make large investments in debt/equity mutual funds schemes by paying only the margin amount. Investors have to invest only margin amount, with ABFL financing the balance application amount.
 
Tenure Upto 365 days
Security Proposed Mutual Fund Units
Loan amount Minimum Rs. 1 Crore
Margin 15% to 30%
Interest rate Competitive
Charges As applicable