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    Idbi capital Idbi capital Document Transcript

    • Vision and Mission IDBI Capital is a leading Indian securities firm offering a complete suite of products and services to individual, institutional and corporate clients Vision To offer our customers the best information possible enabling those to take decisions that better their lives. Mission Be the brand of first choice among all financial service providers. 1
    • INTRODUCTION IDBI Ltd IDBI (IDBI Ltd), the tenth largest development bank in the world has promoted world class institutions in India. A few of such institutions build by IDBI are the National Stock exchange (NSE). The National Securities Depository Services Ltd. (NSDL), Stock Holding Corporation of India (SHCIL) etc. IDBI is a strategic investor in a plethora of institutions which have revolutionized the Indian Financial Markets. IDBI Bank looks confidently into the future to face and thrive in the intense competitive environment that is emerging. The bank has now gained experience and has in place the strategies required for gaining a leadership position. With cutting edge relevant technology, aggressive marketing, innovation, tight control over cost and with its motivated workforce, the bank is all set to emerge as a model global corporate citizen in the days ahead. 2
    • IDBI Capital Market Services Ltd IDBI Capital Market Services Ltd. (IDBI Capital), a wholly owned subsidiary of Industrial Development Bank of India (IDBI), is a leading Indian securities firm, offering a complete suite of products and services to individual, institutional and corporate clients. Our services include fixed income trading, equities brokerage, debt and equity derivatives, research, private placement, depository services, portfolio management and player in each of these businesses. • March 1995 – Commenced Equity Broking on NSE CM segment • July 1995 – Built agent Distribution Network across the country • October 1996 – Commenced Debt Broking on NSE WDM segment • December 1996 – Started Operations as a Depository Participant • 1996 – Started to act as Arranger to Privately Placed Bond issues • April 1998 – Commenced operations as a Portfolio Manager • February 1999 – Acquired membership of BSE. Mumbai • November 1999 – Started operations as a Primary Dealer • June 2000 – Acquired Derivatives Membership of BSE and NSE • March 2002 – Achieved an outright secondary market turnover exceeding Rs100,000cr in G-Secs • October 2002 – Commenced trading interest swaps 3
    • Some of the milestones that came in the way…. • July 2004: The Industrial Development Bank (Transfer of Undertaking repeal) Act 2003 came in to force from July 2, 2004. • July 2004: The Boards of IDBI and IDBI Bank Ltd. Take in principle decision regarding merger of IDBI Bank Ltd. with proposed Industrial Development Bank of India Ltd. in the respective meetings on July 29, 2004. • September 2004: The trust deed for stressed assets stabilization fund (SASF) executed by its trustees on September 24, 2004 and the first meeting of the trustees was held on September 27, 2004 • September 2004: The new entity “Industrial Development Bank of India” was incorporated on September 27, 2004 and certificate of commencement of business was issued by the registrar of companies on September 28, 2004. • September 2004: Notification issued by ministry of Finance specifying SASF as a Financial institution under section 2(h)(ii) of recovery of debts due to banks and financial institution act, 1993. • October 2004: Appointed Day – October 01, 2004 – transfer of undertaking of IDBI to IDBI Ltd. IDBI ltd. Commences operations as a banking company. IDBI Act, 1964 stands repealed. • January 2005: The board of directors of IDBI ltd as its meetings held on January 20, 2005, approved the scheme of amalgamation, merging of IDBI Bank Ltd with IDBI Ltd. Pursuant to the scheme approved by the board of 4
    • both the banks. IDBI Ltd will issue 100 equity shares for 142 equity shares held by shareholders in IDBI Bank Ltd. Institutional Investors Setting Standards: At Idbi Capital, They believe in setting new benchmarks in Quality and performance. Their Consistent policy of putting client’s interests first has set new standards of professional conduct. They had committed to implement global best practices in all the business operations. Transparency, ethical behavior and integrity have been the hallmarks of the conduct with all the stakeholders, be it clients, investors, employees or regulators. They believe that their success and extraordinary growth are due to their adherence to the above beliefs, principles and policies. For Institutional Investors, They are….. • Primary Dealer IDBI Capital is an accredited primary dealer in the government securities market. They are one of the largest participants in the market for government securities, treasury bills and corporate bonds. During FY 2001-2002, they achieved a turnover of over Rs. 100000 Crores. They are also leading 5
    • participant in the money markets with a repo turnover exceeding Rs. 40,000 Crores. They are at the forefront of building a retail debt market in India. • Arranger and Underwriter They are leading arranger and underwriter in the private placement market. They had managed Bond issues for several banks and blue chip corporate clients. IDBI Capital has raised funds in excess of Rs.15000 crore (US $ 3 billion) during 2005-06. • IDBI Capital is rated no. 2 as per Bloomberg for debt raising for the year 2006 • IDBI Capital is rated no. 3 as per Prime Market Monitor for debt raising during the financial year 2005-06 • Manager of Client Assets They are a registered portfolio manager and manage client assets under both discretionary and non discretionary mandates. Portfolio management is a highly customized services aimed at large funds. Their client base includes leading pension and provident funds of India. Their funds have consistently outperformed the market; funds under management have grown over the years and now stand at Rs 24,000 Crores. • Full service Broker They are a full service institutional broker. They are members of National stock Exchange of India (NSE) and the Bombay stock Exchange (BSE). 6
    • They provide quality trade execution to their institutional customers. Their client list includes leading public and private sector mutual funds, financial institutions, banks and Corporates. • Derivatives Trader As member of the derivatives segment in National Stock Exchange and Bombay Stock exchange, they engage in trading and broking of equity futures and options. In fixed income markets they deal in interest rate swaps and forward rate agreements. • Settlement Service Provider Clearing and settlement of trades is a vital function enabling smooth running of the markets. As settlement service provider, they handle the entire spectrum of post-trade activities including trade clearing, pay-ins and pay- outs. They also provide custody services including asset-custody and handling of corporate actions like dividend receipts, bonus and stock splits. • Research Provider Objective, uncomplicated and reliable research empowers investors and makes it possible for them to make informed investment decisions. Their Research team had made a name for themselves in a very short time. Some of our well-known research reports are: 1. Global Market Weekly 2. Mutual Fund Monthly 7
    • 3. Treasury Fortnightly 4. Futures & Options 5. Buzzing Stock Retail Investors Over the last five years, they had built a loyal client base. Client focus is a way of life for them. They at IDBI Capital strongly believe in empowering investors to enable them to manage their personal finances effectively. They are committed to enhancing investor education and awareness. They are building a retail investing platform that brings a large database of information, research, live news, analytics and tools to the investors desktop and enables them to make informed investment decisions. Whether they have just started their career or whether they are planning for retirement, IDBI Capital offers us all the products, help and information that we will need for safe and informed investing. Their online investments services, to be launched soon, will enable us to find investments that are most suited to our special needs. With their portfolio management and returns analysis tools, we will always know how their investments are performing and whether we need to make changes in our portfolio. If we need help, we can get all the advice and services we need from one of their agents across the country. They are committed to protecting our investments and making our wealth grow. 8
    • For Individual Investors, THEY PROVIDE. . . . . Distributor of Financial Products They had a network of over 9,000 trained agents spread across India. Their agents help to distribute Bonds, fixed deposits, small saving schemes, mutual Funds and IPO’s to investors. Their agent care team constantly strives to upgrade the skills of their agents through agent meet, trainings and product literature. Equity Broking They are a member of National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) in the cash and F&O segments. By opening and account with them, we will be able to trade in stock listed on these exchanges. This service is currently available only in Mumbai. They are in the process of rolling out broking services in other parts of the country as well. Depository Services They are a Depository Participant with National Securities Depository Limited (NSDL). They offer high quality depository services at very attractive rates. Their soon to be launched online depository services will enable to place delivery instructions and perform other transaction online over the internet. Meanwhile, if we are not a resident of Mumbai or we are not in a position to visit their offices, we can still place instructions through fax, provided us, sign a fax indemnity and send the original through courier the next day. Investment Services 9
    • We can make all type of investments including tax savings bonds, mutual funds, RBI relief bonds and other investments products sold by them directly or through their agent network. Bond Trading They actively assist in buying and selling bonds in an effort to profit from short- term changes in prices, rather than simply buying bonds and holding them as a long-term investment. The most actively traded bond markets are the ‘governments’ markets. This is because of the volume, liquidity and homogeneity (sameness) of the markets. Stock Broking They buy and sell securities on behalf of client in return for a commission based on the value of business done. Derivatives Trading A derivative is a synthetic construction designed to give the same profile of returns as some underlying investments or transaction, without requiring the principal cash outlay. They are called derivatives because they derive their value from performance of the underlying instrument. They provide the trading of this derivative by giving the customer a new way of trading. Client Assist Management They give their clients a cutting edge management services for taking care of their assets like bonds, stocks, shares and no need to mention portfolios. 10
    • Retail Distribution They provide various retail outlets across the country that helps customers in investing easily. All these are connected to the central head office to Mumbai. Online Investment With their commitment to enhancing investor education and awareness as a foundation stone, they have built an online investing portal www.idbipaisabuilder.in for trading and depository services. This platform enables easy and informed investing in Equity shares, Futures & Options (F&O), IPO’s and Mutual Funds, for the retail investors with a wealth of information, news, analysis and tools sourced from the best in the industry like Reuters, Multex, CMIE, Money control and Business Standard. With this platform, investing in equity, mutual funds and IPO’s is just a click away with their three-in-one account linking savings account, trading account and the Demat account. Building a healthy Investment Portfolio Building a healthy Investment Portfolio is not just a hit or miss affair. Careful planning along with an in-depth understanding of our own needs as well as personal goals is the key to success. IDBI Capital has evolved investment strategies that take the historical performance of stocks, bonds and other instruments into account. They can help us to reduce the effect of market fluctuation by designing an optimum Risk Management Strategy in line with our Goals, Time, Frame and 11
    • Tolerance for investment risks. Our chances of achieving the desired returns over the long term will improve as a result. We will benefit from the same expertise that IDBI Capital uses for managing over Rs 30,000 Crores of Pension & Provident Fund money that all of us care so much about. They provide a comprehensive range of Financial Services to Banks, Mutual Funds, Institutions and Corporates as under: • Trading in Government Securities and Bonds • Investment Banking and Corporate Advisory Services • Deployment and mobilization of funds • Trading in Equity and Derivatives • Distribution of all Mutual Funds, Equity and Bonds • Depository services • Asset Management of Provident/Pension Funds 12
    • Service Request Transfer of Shares While sending the shares for transfer, kindly ensure that the transfer deed is complete in all respects particularly the seller’s signature, broker’s stamp, SEBI registration/code no. and the required share transfer duty paid and the stamps are cancelled. Kindly ensure that the buyers and sellers have signed at appropriate places and the buyer’s address is given in full including pin code and telephone/fax number, if any. Also ensure that the transferor has put his signature in full and that all the holder(s) of the share certificate have signed the transfer deed. Kindly ensure the signature of the transferor is duly witnessed. If the transfer deed is signed by the constituted Attorney of transferor, kindly ensure that the registration number of the Power of Attorney registered with IDBI/Registrar is mentioned on the reverse of the transfer deed. Otherwise, the 13
    • transferor may be requested to have the Power of Attorney immediately registered with IDBI before approaching for transfer. In case a transferee wishes to have the transfer deed signed by his constituted Attorney, kindly attach the necessary Power of Attorney duly notarised. Please obtain a registration number from IDBI. In case the transferee is acting through his constituted Attorney, and his power of Attorney was already registered with IDBI, quote the registration number at the appropriate place. In case the purchaser is already having an existing folio number, please quote the same in the transfer deed to facilitate registration of new shares in the same folio number. Sale and purchase of shares may be done through the registered share broker of recognised Stock Exchange. Transmission of shares in case of death of the shareholder Transmission of shares arises in case of death of the registered shareholder. If the shares are held in joint names, only the deceased shareholder’s name is deleted. A copy of the death certificate of the deceased registered shareholder duly attested by competent authorities (magistrate, notary public, and gazetted officer, managers of nationalised banks or official of IDBI) is to be sent along with the share certificate. 14
    • In case of a single shareholder, the shares will be transmitted in favor of those persons who are heirs of the deceased registered shareholder as per the Will executed by him. In case the deceased shareholder has not left any Will, transmission of the shares will be effected only on production of succession certificate or letters of administration. Transposition (change in the order of holders) Transposition can be resorted to change the order of holders of the shares inter se i.e. the first holder may become second holder or third holder and vice versa. All requests for transposition should be sent to the Registrar along with the duly filled in transfer deed without any stamping. Transfer deed should be signed by all the holders. Issue of duplicate share certificate For defaced/damaged share certificate(s) Duplicate share certificate(s) are issued in lieu of defaced/ damaged share certificates. The defaced/damaged share certificates may be sent with a request along with relevant information to facilitate issue of duplicate certificate(s). 15
    • In case of theft or loss (other than postal loss) of certificate(s) The loss of share certificate(s) shall be reported immediately to IDBI/Registrar along with certificate nos. /folio no. and distinctive nos. to stop transfer of such shares. A complaint shall have to be lodged with the local police station about the loss of certificate(s) and a copy of the FIR shall be obtained. Simultaneously, the Civil Court should be approached for obtaining an order restraining IDBI/Registrar from transferring such shares. The request for issue of duplicate share certificate(s) shall be sent to IDBI/Registrar along with Letter of Indemnity in the prescribed form duly stamped and a Letter of Surety, if required. In case of postal loss of certificate(s) In case the share certificate(s) have been lost in postal transit or not received due to postal disorder, duplicate share certificate(s) will be issued on receipt of Letter of Indemnity and a Letter of Surety, if required along with request letter. 16
    • Duplicate share certificate(s) will be issued only after necessary notification regarding the loss/non-receipt of the original share certificates is given in the newspapers. Change of address/Change in the names of shareholders: Change in the names of Individuals Requests for change of names shall be made together with original certificate along with a copy of notification in the Official Gazette or a newspaper or an affidavit drawn on stamp paper of appropriate value duly sworn. The fresh specimen signature duly attested by a banker shall also have to be submitted to IDBI/Registrar. Change in the name consequent upon marriage/ divorce For effecting the change of name consequent upon marriage/divorce etc., the original certificate together with a copy of marriage certificate/decree of divorce duly attested by competent authorities should be forwarded to IDBI/Registrar. Fresh specimen signature duly attested by a banker shall also have to be submitted to IDBI/Registrar. Change in the name of Companies 17
    • Companies desirous of changing the name in which the share certificate has been issued shall have to furnish a certified copy of the fresh Certificate of Incorporation issued by the Registrar of Companies along with the original share certificate. De-materialisation of shares Shares can also be held in Dematerialised (Demat) form in National Securities Depository Ltd. (NSDL) or Central Depository Services (India) Limited (CDSL). NSDL/CDSL is depositories where the securities of an investor are held in electronic form through the medium of Depository Participants (DPs). These facilities obviate the difficulties of loss, fraud, signing of transfer deeds or delay in transfer, etc. and offer scope for paperless trading. To convert the shares into Demat form, the shareholders have to open a Depository Account with a Depository Participant (DP) for a small annual charge. In the Demat process, the shareholders are required to surrender the certificates to DP for onwards transmission to IDBI. The certificates will then be verified and if found in order, will be dematerialised and equivalent number of shares will be credited by DP to the account of the shareholder. Advantages to shareholder on holding shares in Demat form are: • No damage or loss of certificate e.g. loss in postal transit when you applied for shares in public issue. 18
    • • Cases of forgery or tearing or mutilation of share certificate(s) are eliminated. • Once you open an account with a DP, you can buy or sell shares in electronic form without any paperwork and without paying stamp duty as applicable to scrip based transaction. IDBI Capital launches Online Investment Portal Financial services provider IDBI Capital had launched an online investment portal to provide information, analysis and tips to retail investors to help them invest in initial public offerings (IPO’s), equities and mutual funds. 19
    • "Idbipaisabuilder.in is for the retail investors who have missed out on the boom in Indian stock market. The site will concentrate on helping them in right decision making by minimising risk involved in equity investment," Investors will be given unique bank, Demat and trading accounts, which will be safe for carrying out trading. "Investment information will be free to all. To carry out trading, an investor has to be a member by giving a one-time fee of Rs. 700 and thereafter only broking charges for trading in shares." The website will give information and analysis on markets, economy, Corporates and specific sectors for which the company has tied up with Multex, a subsidiary of Reuters and the Centre for Monitoring Indian Economy. IDBI Capital has roped in top 15 broking houses to give recommendations to retail investors. "Their effort is to help small investors get better returns to bridge the gap in income and lifestyle," Besides offering online guidance, IDBI Capital will open about 350 franchises in urban and rural areas to help investors who do not have access to Internet. The portal has two platforms `Paisa Power Classic Account' for relatively new investors and `Paisa Power Streaming Account' for active investors in BSE and NSE. The company aims to introduce trading in commodities, futures and options (F&O) and debt instruments later. IDBI Capital is eyeing at pension foray when the government puts in place the legislation. "They have made presentations to the 20
    • Pension Fund Regulatory and Development Authority (PFRDA). They are waiting for the PFRDA Bill to be passed," On inorganic growth, IDBI Capital ruled out buying UTI Securities, which is looking for a prospective buyer. "IDBI Capital is the largest primary dealer (PD) in government securities and provides a host of other financial services, so they are not buying into UTI Securities as they are already present in all the segments." Besides PD, IDBI Capital provides services such as investment banking, stock broking, bond trading, derivatives trading, mutual fund products selling and pension fund management. "The focus is now on moving from wholesale to retail foraying and idbipaisabuilder.in will be the vehicle to reach out to retail investors." IDBI Portal Presenting the online portal to get ahead in life. 21
    • Why Online? • Integrated 3-in-one online account: No hassle of managing separate Bank, Investment and Demat accounts. • It’s convenient – trade anywhere, anytime. . . • It is seamless and paperless, you save hours spent in filling the forms • It’s transparent price at which you trade is in your control • Total Confidentiality maintained 22
    • • It as built in features for safe and secure trading • We get comprehensive information to help us to pick the right stock • We get instant confirmation of all our orders • Totally hassle-free investing. . . • No running around banks and brokers • Ease: Transact at the click of a button • Place orders even when the market is closed • Online availability of complete transaction records 23
    • Features that enable us to take informed decisions • 3-in-1 account Apart from the comprehensive information and analytical tools showcased in the portal, a retail investor can opt for the 3-in-1 account, which combines bank, depository participant, and trading accounts. A one-time fee of Rs 700 (including the legal fees of Rs 360) would be charged for opening a 3-in-1 account. • Separate platforms for new and old investors One of the differentiating factors of the company's portal is the presence of two platforms - `Paisa Power Classic Account' for relatively new investors and `Paisa Power Streaming Account' for active investors in the BSE and the NSE. "The streaming account provides complete visibility about market changes when transactions are put through." For taking the investment portal to users without Internet access or are located in non-metros, IDBI Capital is looking to appoint 350 franchisees all over the country. 24
    • Currently, the portal enables investors to make investments in IPO’s, mutual funds, and the secondary equity market. The portal would also provide guidance on debt-related investments; so that the retail investor could use the mutual fund route for debt-oriented investments. IDBI Capital is now providing a platform for futures and options (under the portal). • Newsrooms This provides news from the most credible sources-Reuters, moneycontrol.com, Business standard. It provides news on equity, debt, politics and general news. It also gives on Intra day chart. It keeps the user updated with live news analysis, market commentary and hot stocks. • Corporate library It gives comprehensive company information on major listed companies covering Company Snapshot, Stock Price Details, its movement v/s Sense… Analyst recommendation on the company, news, exchange and scrip information and corporate details. It also gives detailed financial analysis with P&L, Cost Analysis, Assets, Liabilities, and Important Ratio etc. Unique feature is it gives pre companies comparison. All this is data is from the most credible sources CMIE and myiris. 25
    • • Market Map It provides bird’s eye view of intra-day market movements with live real time data, option to choose between BSE and NSE, buy/sell or do advanced research by clicking on the company name, compare the current market movement with any of the intra-day time slot provided. • Analyst Recommendations It gives buy/sell/hold recommendations. Gives Company Estimates with Earnings and EPS Estimates, Sales Estimates, Profit Estimates, Dividend Estimates. Credible brokers like Merrill Lynch, CLSA Asia Pacific Market, and UBS Equities, ASK Raymond James etc. are covered. The analysis is from “multex global estimates”. • Market monitor It engulfs features like market at a glance with live Market Indices, Sectoral Indices, Sensex and Nifty Movers. It gives Market Movement Analysis tools like gainers and losers today, advances and declines, new highs and lows, volume toppers, etc. other useful market data like International Markets and Historical Stock Performance are provided. • Charting corners Provides a charting tool for analyzing stock performance. The plotting can be done for both BSE and NSE on the basis of stock price, volume, market cap and P/E. it can be used to plot charts against Domestics Indices (Nifty 26
    • BSE 100, 200 etc.), Domestic Sectors (BSE Capital Goods, FMCG Index, etc.) and International Indices (NIKKEL 225, Hang Seng, etc). It provides an exceptional way to plot and compare 9 scrips simultaneously with a data of over 10 years. • Buy Today Sell Tomorrow • Trade Book The trade book shows you the status of all your trade placed today. To view trades of any previous date, select the appropriate date range in the Selection Panel below. Click ‘Order Details’ to view all orders. Trade and Settlement information for that order. Click ‘Order Books’ to view details of all order placed by you. • Stock watch You can add up to 20 stocks to ‘My Stock list’ to help you track their movement in the market. Nifty Watch tracks the movements of its constituents stocks. Sector Watch helps you track the movement of important stocks from key sectors. • Real Time Quote The Real-Time quote for a stock is the latest price information brought to you directly from the Stock Exchange. You can make better trading decisions based on the latest price, direction and depth information presented to you on this screen. To know more about Real-Time Quote, enter the “NSE” symbol and click go. 27
    • OFFERS • Intra day margin trading: o Maximum up to 5 times of current buying behavior o Client square off by 3 p.m. OR o Auto system square off after 3 p.m. o All gains/loses and trade charges to client account • Open position o Open position are the positions created by us during the current settlement. A buy position is created when a buy order placed by us is executed at the Stock Exchange. Similarly a Sell Position is created when a sell order placed by us is executed at the Stock Exchange. o Track our Open Margin and Cash position for the current settlement on this page. Click on the square off link to square off open positions during the day at market or limit prices specified by us. o Please note that our open margin positions will be squared off automate call at 3:00 pm today. We have the option to convert our open margin position to cash position by clicking on Convert to Delivery. 28
    • Advantages of IDBI Paisabuilder • Superior speed of transacting even during peak market hours • Richer more relevant and digestible information • User friendly navigation • Attractive rates for Group corporate customers Operation Manual 1. Process for a new user for starting trading on idbipaisabuilder • Needs and IDBI or HDFC Bank Account • The account should be Internet enabled • Needs to open and idbipaisabuilder account which is combination of trading account and Demat account only after submission of completed documents • Log on to www.paisabuilder.in • Link the IDBI account to the investment account at idbipaisabuilder • Transfer funds in the investor account And ready to TRADE!!!!! 29
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    • Documents and A/c Opening Formalities 2. Documents required for opening account in idbipaisabuilder o Proof of identity: (any one) • MAPIN ID • PAN • Passport • Driving license • Voter ID o Proof of residence: (any one) • Passport • Driving license • Ration card • Voter ID • Copy of bank statements where address matches • Rent agreement • Flat maintenance bill • Certificate issued by employer under map-in • Insurance policy o Proof of bank account: (any one) • Copy of bank statements 31
    • • Cancelled cheque leaf • Letter from bank confirming the bank account o Passport size photographs 3. Account opening formalities • Documents to be submitted along with application from already informed. Also mentioned in Application Form inside cover. Application form has plastic bag inside to store other documents to be submitted. • For email-id advisable to submit emails of service providers who give larger inboxes like Yahoo, Rediffmail, Gmail etc. • For any help / clarifications on filling the forms, contact us. 4. Checklist for filling individual client Registration form • Proof of identity of first/all holders Voter ID Passport PAN MAPIN UID Card Driving license • How as the identity of the client been verified? Client visited the office, or Branch/Franchisee personnel met the client 32
    • • Address proof of first/all holder(s) Voter ID Driving license Passport Ration card Telephone bill (not proceeding two months) Electricity bill (not proceeding two months) Rent Agreement Latest bank statement (not proceeding two months) • Does address proof match with the corresponding address given by client • Has the address of the client been verified by the branch/franchisee • Signed Photograph of all holders • Copy of Cheque/Cancelled Cheque • Name Address and Signature of witness on agreements • Tariff sheet duly signed by all the holders • Standing Instruction specified • Nominee photograph duly signed • Name Address and Signature of 2 Witnesses incase of Nominee • Date of birth certificate in case of nominee being a minor • Photograph and Signature of Guardian in case of nominee being a minor • Form is complete in all respects 33
    • • Verification stamp with signature, name and date on the document collected HUF Account • Signed photograph of the Karta • Proof of identity of the Karta • Copy of PAN Card • Undertaking letter signed by 2 coparceners • HUF Stamp is affixed weather the client signs on the agreement • Bank account is an HUF Account • Sign the form of the customer before giving to the respective branch 34
    • Fee Structure • Brokerage structure EQUITY - DELIVERY BASED TRANSACTIONS (Turnover/Month) Total Eligible Turnover per Month Brokerage Per Leg (%) Up to Rs. 2,00,000 0.50% Rs. 2,00,001- Rs. 5,00,000 0.45% Rs. 5,00,001 - Rs 10,00,000 0.40% Rs. 10,00,001 - Rs 20,00,000 0.35% Rs. 20,00,001 - Rs 40,00,000 0.30% Rs. 40,00,001 - Rs. 1,00,00,000 0.25% Rs. 1,00,00,001 - Rs. 5,00,00,000 0.20% Above Rs. 5,00,00,000 0.15% Minimum Brokerage Rs. 20 per contract or actual brokerage whichever is higher. Contracts will be separate for NSE and BSE, normal segment and for Trade to Trade segment. Securities Transaction Tax + Service Tax Extra as applicable If delivery transactions are squated-off within the same day/settlement, Intraday brokerage will be charged for all such transactions (both sides). EQUITY - INTRADAY TRANSACTIONS (Turnover/Month) Total Eligible Turnover per month Brokerage Per Leg (%) Up to Rs. 2,00,00,000 0.050% Rs. 2,00,00,001 - Rs. 4,00,00,000 0.045% Rs. 4,00,00,001 - Rs. 6,00,00,000 0.040% Rs. 6,00,00,001 - Rs. 8,00,00,000 0.035% 35
    • Rs. 8,00,00,001 - Rs. 10,00,00,000 0.030% Above Rs. 10,00,00,000 Inquire with us Minimum Brokerage Rs. 20 per contract or actual brokerage whichever is higher. Contracts will be separate for NSE and BSE, normal segment and for Trade to Trade segment. Securities Transaction Tax + Service Tax Extra as applicable FUTURES TRANSACTIONS (Turnover/Month) Total Eligible Turnover per month Brokerage Per Leg (%) Up to Rs. 2,00,00,000 0.048% Rs. 2,00,00,001 - Rs. 5,00,00,000 0.040% Rs. 5,00,00,001 - Rs. 10,00,00,000 0.035% Above Rs. 10,00,00,000 Inquire with us Securities Transaction Tax + Service Tax Extra as applicable OPTIONS TRANSACTIONS 1% premium, subject to a minimum of Rs. 100 per contract. Ÿ The turnover in Options will not be considered for calculating the slabs for the brokerage rebates on futures contracts. Ÿ In case of same day square off in the Options contract, brokerage will be charged on both buy and sell sides. Demat Charges for IDBIpaisabuilder.in customers Nature of Service DP CHARGES Client registration charges for Demat A/c NIL Annual Maintenance Charge (AMC) for Demat A/c Free for the first Year. AMC Rs. 350 from year two onwards. Transaction charges for DP - Buy (only for off-market transactions) NIL Transaction charges for DP - Sell (Online) Rs. 6 per transaction done through IDBIpaisabuilder.in Market and Off Market Sell Rs. 100 per instruction/scrip for the Delivery Instruction Slip submitted at IDBI Capital branches. Demat Rejection/Instruction fails Rs. 30 per instruction Dematerialisation/Certificate Rs. 3 Amount charged per request (Dematerialisation) Rs. 30 36
    • Rematerialisation Rs. 20 Pledge Creation/Invocation Rs. 100 Transaction Statement other than mandatory statement/Extra Rs. 20 per request Invocation/Closure of Pledge Rs. 25 • Comparative Cost Structure for Brokerage Nature of Service ICICI Direct Kotakstreet Sharekhan HDFC Securities IDBICapital Paisabuilder A/c Final charges for online trading customers Client Registration Charges for Demat a/c 0 0 0 0 0 AMC for Demat a/c 350 360 500 300(free for first year) Free for Paisabuilder for 1st year, subsequent year 300 p.a. For additional Demat a/c, Rs. 300 per a/c Transaction Charges for D.P- Buy 0.02% 0.04% 0.20 25 0 37
    • Transaction Charges for D.P sell 0.04% 25 20 23 15 Dematerialisation Certificate 2 3 3 3 3 Charged / request 35 25 15 35 30 Rematerialisation 20 0.04% 15 10 20 Pledge creation Invocation 0.02% 0.05% 0.02% 0.05% 100 Transaction Statement other than mandatory statement extra 20 Nil 10 25 20 Invocation closure of pledge __ 0.04% __ __ 25 38
    • JOINT VENTURE IDBI Capital ties up with Karur Vysya Bank Sri P.T. Kuppuswamy, Chairman, Karur Vysya Bank and by Sri O.V. Bundella, Deputy Managing Director, IDBI Ltd. and S Muhnot, MD & CEO, IDBI Capital. According to Sri P.T. Kuppuswamy “The demat services will be made available at KVB, commencing from the month of June, 2007. Initially, the service will be available through 13 of their major branches and in time, this will be extended to all our branches in phases.” The idbipaisabuilder.in online investment portal of IDBI Capital Market Services Ltd., strongly recommended itself to us because it does not just provide on-line trading convenience, but also makes available easy and informed guidance to the retail investor, information about investing in equity, mutual funds, F&O and IPO’s. According to Sri S Muhnot, “An advanced online trading portal, IDBIpaisabuilder.in is built with a core objective to provide easy and informed investing experience to investors. This association will provide customers of the bank with a world-class online investing platform with the backing of two very reputed and established financial institutions of the country. They are extremely glad to be associated with Karur Vysya Bank in this venture.” With this tie-up, Karur Vysya Bank will be able to provide comprehensive investment solutions to all their customers. It will also help them to push their DP services. IDBI Capital in turn would benefit from the wide reach and presence of 39
    • Karur Vysya Bank. Speaking on the performance of KVB for the financial year 2006-07, that has just ended, KVB has reached total business levels of Rs. 16526.15 cr. They have recorded impressive growth rates in respect of both deposits and advances at 23.7% and 26.18% respectively. They have crossed Rs. 1000 cr. mark in respect of Net Owned Funds and are likely to surpass the figure of Rs. 1100 cr. Their Net NPA level of below 0.25% is one of the lowest in the industry. On the technology side, they are one of the earliest banks in the country to have achieved 100% networking of our branches and offices under Core Banking Solutions rendering services through multiple delivery channels. They offer the best of technology-backed services like Anywhere Banking Convenience, Net Banking, Mobile Banking, Multi-city Accounts and e-flash, which is their Real Time Gross Settlement Product for inter and intra bank transfer of funds in real time. They had a network of 246 own interconnected ATMs and our customers have access to over 10000 ATMs coming under the VISA/NFS/MITR/UTI cluster. Their USP is that they bring these technological services at affordable price so that the fruits of technology reach the common man. They plan to introduce more such technology backed products to live up to their objective of being a truly Techie Bank.” 40
    • IDBI Capital ties up with Oriental Bank of Commerce IDBI Capital Market Services Ltd., a leading provider of financial services in India signed a MoU with Oriental Bank of Commerce, a leading Nationalized Bank, to offer advanced e-trading services through www.idbipaisabuilder.in to customers of the bank. This was announced by Mr. S Muhnot, MD & CEO, IDBI Capital and Mr. K.N. Prithviraj, Chairman & Managing Director, Oriental Bank of Commerce, "IDBIpaisabuilder.in is targeted mainly at the retail investors. The site will enable the investors to take the investment decisions minimizing the risk involved in equity investment and will hand hold the investors throughout the entire investment process and also provide for faster trade execution." With this tie-up, Oriental Bank of Commerce will be able to provide comprehensive investment solutions to all their customers having the Demat and saving account with the bank. IDBI Capital in turn would benefit from the wide reach and nationwide presence of Oriental Bank of Commerce having more than 1 lac Demat account. Initially the system will be introduced at M Block, Connaught Place, New Delhi Branch of OBC and later on other branches would also be added to the list. The portal allows investing online in Equities, Mutual Funds & IPO’s. 41
    • IDBIpaisabuilder.in helps investors make the right decisions on their transactions by imparting them with pertinent news; information and analysis along with company specific Fundamental Analysis through comprehensive corporate data. Facilities of investing online in Equity (NSE & BSE), F&O (NSE), Mutual Funds (including SIP facility) and IPOs, portfolio tracker, two equity trading platforms to all customers and custom stock screener are some of the other unique features, apart from the comprehensive information and analytical tools are available on IDBIpaisabuilder.in. The portal has been designed keeping a retail investor in mind for easier comprehension and provides very easy navigation. IDBI Capital ties up with Punjab National Bank IDBI Capital Market Services Ltd., a leading provider of financial services in India signed a MoU with Punjab National Bank, to offer advanced e-trading services through www.idbipaisabuilder.in to the customers of the bank. This was announced by Mr. S Muhnot, MD & CEO, IDBI Capital and Mr. K Raghuraman, Executive Director, Punjab National Bank. According to Mr. S Muhnot, “An advanced online trading portal, IDBIpaisabuilder.in is built with a core objective to provide easy and informed investing experience to investors. This association will provide customers of the 42
    • bank with a world class online investing platform with the backing of two very reputed and established financial institutions of the country. They are extremely glad to be associated with Punjab National Bank in this venture.” IIDBIpaisabuilder.in is targeted mainly at the retail investors, many of whom have unfortunately missed out on the recent boom in Indian stock markets. The site will enable the investors take right decision making by minimising risk involved in equity investment and hand hold the investors throughout the entire investment process and also provide for faster trade executions. They are presently rolling out this initiative in 2 metros to start with and hope to make it available nationally at the earliest." With this tie-up, Punjab National Bank will be able to provide comprehensive investment solutions to all their customers. It will also help them to push their DP services. IDBI Capital in turn would benefit from the wide reach and nationwide presence of Punjab National Bank. IDBI Capital ties up with Bank of Rajasthan IDBI Capital Market Services Ltd., a leading provider of financial services in India today inked an agreement with Bank of Rajasthan, a leading bank to offer 43
    • advanced e-trading services through www.idbipaisabuilder.in to the customers of the bank. This was announced officially by Mr. S Muhnot, MD & CEO, IDBI Capital, Mr.B.M.Sharma, MD, The Bank of Rajasthan and Mr.Vinod Juneja, Dy.MD, The Bank of Rajasthan at a press conference in Jaipur today. According to Mr. S Muhnot, “An advanced online trading portal, IDBIpaisabuilder.in is built with a core objective to provide easy and informed investing experience to investors. This association will provide customers of the bank with a world-class online investing platform with the backing of two very reputed and established financial institutions of the country. We are extremely glad to be associated with Bank of Rajasthan in this venture.” "IDBIpaisabuilder.in is targeted mainly at the retail investors, many of whom have unfortunately missed out on the recent boom in Indian stock markets. The site will enable the investors take right decisions by minimising the risk involved in equity investment and hand hold the investors throughout the entire investment process and also provide for faster trade executions. We are presently rolling out this initiative nationwide in a phased manner." With this tie-up, The Bank of Rajasthan will be able to provide comprehensive investment solutions to all their customers. It will also help them to push their DP services. 44
    • IDBI Capital in turn would benefit from the wide reach and presence of The Bank of Rajasthan, especially in the state of Rajasthan where it is extremely strong. Business Development Flowchart 45
    • NEWS REPORT IDBI Capital may sell 26% stake Mumbai August 15th , 2007 46
    • IDBI Capital, a wholly owned subsidiary of IDBI Ltd, is planning to sell 26 per cent stake to a strategic foreign partner to boost its institutional broking business. Sources said the company, which is into stock broking, internet trading, merchant banking and private equity, has held informal talks with foreign players and is finalising a merchant banker for the deal. “A lot of M&A deals are happening in the broking space and we are not immune to this activity in the future. In case, if any strategic partner comes along with major FII business, we may look at it,” said S Muhnot managing director & CEO of IDBI Capital. Sources said IDBI Capital could command a valuation of more than 4-5 times its net worth of Rs 350 crore. They also do not rule out the possibility of a higher stake sale (up to 49 per cent) depending on the valuation. Bear Stearns, the biggest debt player in the US and the Australia-based Macquarie, who are keen on entering the Indian market, are two contenders for the stake purchase, said sources. IDBI Capital is also into retail broking through its internet portal, corporate advisory and debt arranging & underwriting. It has a turnover of more than Rs 47
    • 10,000 crore a year in the broking business. Last month, IDBI Capital increased its private equity corpus to Rs 150 crore. The move to attract a strategic partner comes at a time when the domestic broking industry is attracting a slew of players through the mergers and acquisition route. The US-based Lehman Brothers is learnt to have bought out the institutional broking business of Brics Securities. JM Financial, after its split with Morgan Stanley, acquired 60 per cent stake in ASK Securities, an institutional broking firm. IDFC also recently hiked its stake in SSKI and Citigroup’s private equity arm CVCI bought a majority stake in Sharekhan, the retail broking arm of the Mumbai- based SSKI Group. Early this month private equity investor Baring picked up a majority stake in JRG Securities, a Kochi-based firm. Banking and financial services is the most active space in India, with private equity accounting for 75.9 per cent of the M&A deals, according to Thomson Financial. IDBI Cap musters on retail broking biz 12th Aug, 2007, 1800 hrs IST, PTI 48
    • MUMBAI: IDBI Capital Market Services proposes to cash on the untapped retail broking business, particularly in north India, through 5,000 plus bank branches and online trading platform. To support its online trading portal 'idbipaisabuilder,' the bank has mustered 5,004 CBS branches of leading lenders like Punjab National Bank(PNB), Oriental Bank of Commerce (OBC), Bank of Rajasthan among others. IPO’s, equity and mutual funds investment is what the company has decided to market to the retail investors across the nation through the internet portal IDBIpaisabuilder.in. "Retail broking has huge potential considering the fact that only four per cent of household assets are invested in equities and mutual funds as compared to 40 per cent worldwide," IDBI Capital Managing Director and CEO Sushil Muhnot said. "The retail broking business has thus the potential to grow ten times the current market size," Muhnot said adding retail broking is currently in the growth phase and IDBI Capital has adopted technology as a vehicle to cover this huge untapped market across the nation. Online trading facility of IDBI Capital Market Services is fast catching up with computer savvy investors with more than 25,000 customers logging to idbipaisabuilder for investing in the markets, he added. 49
    • IDBI Capital's online trading page boasts of features that enables investors to access live market data while placing an order for buying or selling. SURVEY REPORT 50
    • 1. Do you invest or save money for future? 85 15 0 10 20 30 40 50 60 70 80 90 yes no 2. Do you know how to trade in Stock Market? 70 30 0 10 20 30 40 50 60 70 yes no 3. Which way you would like to invest through? 51
    • 60 40 0 10 20 30 40 50 60 yes no 4. Are you aware of opportunities with stock market now-a-days available? 45 55 0 10 20 30 40 50 60 yes no CONCLUSION 52
    • After completing this project it can be concluded that IDBI Capital Market Services Ltd is a subsidiary of IDBI Ltd. As IDBI Capital acts as a Broker in the financial market, it is a leading Indian securities firm offering various products and services. They are the members of NSE and BSE. Through IDBI Capital the investor had got the way to invest in the stock market through the companies site idbipaisabuilder.in, previously it was on the offline trading basis, where many peoples where facing lots of problems, They were not convenient in investing in the stock market. Around 70% peoples are not aware about the Stock market, Where to invest? How to invest? Now because of the online trading, people can open a trading account with IDBI Capital and can easily invest in the stock market from office or home or from anywhere by just logging to their site. Today Stock market is playing a vital role, as there are many financial services provider in the market now-a-days available, and hence IDBI Capital may develop their business by providing better services to their clients. ANNEXURE 53
    • Visited IDBI Capital Market Services Ltd (Wadala Branch) on 7th Sep’2007 at 11.30 am BIBLIOGRAPHY 54
    • • Journal of IDBI Capital Market Services Ltd • Newspaper: 1.Business Standard 2.Economic Times 3.Times of India WEBLIOGRAPHY • www.idbicapital.com • www.goggle.com • idbipaisabuilder.in VISIT TO IDBI CAPITAL 55