|Equity and Derivatives |
| The total capital worth of any company is divided into equal units of small denominations. Each denomination is called a share, and owners of these shares have voting rights in the company’s affairs. This ownership interest of the share holder is commonly referred to as equity.|
Many still view equity investments as a somewhat higher risk investment avenue. However, a detailed study of historic returns indicates that it is one of the best investments choices in terms of returns.
A well know adage goes in the Stock Market – “Higher Risk Higher Returns”
A well evaluated and monitored investment in equity markets can easily offer returns better than fixed income securities.
We at IDBI Capital, provide you with all the necessary tools, guidance and advice to help you make informed investment decisions and thus, in maximizing your returns – minimizing your risk.
What we Offer:
- Facility of trading on the NSE & BSE Cash segment as well as Futures and Option segment of NSE.
- Convenience of integrated bank, demat & trading account.
- Attractive brokerage plan options.
- In-depth Advisory reports.
- Internet based trading.
- Free Call and trade facility.
- Mobile phone based trading.
- Investment related SMS alerts.
- Dedicated service branch & relationship manager.
- Comprehensive reports to efficiently track your investments and portfolio.
- Pan India presence
As a customer of IDBI Capital, you have the option of trading with us under the Online Broking Service or the Offline Broking Service. We have online Banking association with,
Punjab National Bank
Oriental Bank of Commerce
Karur Vysya Bank
Union Bank of India
Lakshmi Vilas Bank
To know more on our broking services Click here
To know more about Equity Click here
To know more about Derivative Click here
|Mutual Funds |
|A Mutual Fund is a sum of money pooled by different investors and is professionally managed by an investment company who invest in Stocks, Bonds, gold and other financial securities in a diversified manner with the objective of generating high Rate of Returns. The pooling of small amounts into a large sum allows diversification of investments, economies of scale and thorough research, detailed analysis on various assets, the market conditions, price etc.|
In India, Mutual Funds follow a 3-Tier structure. A Sponsor is the 1st tier and initiates the first measure to start a Mutual fund. The sponsor seeks relevant approvals from SEBI or Securities Exchange Board of India which regulates the Mutual Funds in India. SEBI conducts thorough checks to find out whether the sponsor has enough experience in the financial sector, networth, integrity etc. Once SEBI approves the establishment of is convinced the sponsor creates a Trust (the 2nd tier) under the Indian Trusts Act 1882. Since trusts have no legal identity in India & cannot enter into contracts, the trustees enter into contracts on behalf of the trust. Once this trust is created, it is registered with SEBI, and is known as a Mutual Fund.
The trustees in turn appoint the Asset Management Company (AMC) (the 3rd tier) which manages the investor’s money & invests it in securities that match its financial objectives of various schemes. They charge a fee for the services provided. AMC’s are regulated by SEBI. The AMC then floats new mutual fund schemes & manages these schemes in line with the approved objectives, terms and conditions of the scheme and the pertinent SEBI regulations.
Mutual Funds are considered to be safe and lucrative investment option. They are managed by professionally qualified Fund Managers & are highly liquid assets providing investors an exit option at all points of time.
Who can invest in Mutual Funds
- Resident Indian Individual/HUF
- Indian Companies/Partnership Firms
- Indian Trusts/Charitable Institutions
- Banks/Financial Institutions
- Non-Banking Finance Companies
- Insurance Companies
- Non-Resident Indians(NRI), and Persons of Indian Origin(PIO)
- Foreign Institutional Investors (FIIs) registered with SEBI
Advantages of Mutual Funds:
- Professional Investment Management
- Diversification of investment in a broad range of securities
- Low investment amount
- Total liquidity & easy withdrawal
- Convenience & flexibility in terms of purchase & redemption
- Wide choice of schemes
- Tax benefits
Types of Mutual Fund schemes:
A] By Structure:-
1) Open-Ended schemes: These schemes are highly liquid & do not have fixed maturity period. Investors can buy & sell units at Net Asset Value (NAV) related prices which are declared on daily basis.
2) Close-Ended schemes: These schemes have a fixed maturity period (e.g. 5 & 7 years). Investors can invest in the scheme at the time of the initial issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where they are listed. The market price at the stock exchange could vary from the scheme’s NAV on account of various market factors. Some Close-ended schemes give the investors an additional option of selling their units to the Mutual Fund through periodic repurchase at NAV related prices. SEBI Regulations ensure that at least one of the two exit routes are provided to the investor i.e. either repurchase facility or through listing on stock exchanges.
B] By Investment objective:-
1) Growth Schemes: The main aim of Growth Schemes is to provide capital appreciation over the medium to long term. These schemes normally invest a majority of their funds in equities & generally carry high risk. These schemes provide different options to the investors like dividend option, capital appreciation, etc and the investors may choose an option depending on their preferences. Growth schemes are good for investors having a long-term outlook seeking appreciation over a period of time.
2) Income Schemes: The aim of Income Schemes is to provide regular and steady income to investors. These schemes generally invest in fixed income securities such as bonds, corporate debentures, government securities & money market instruments & carry less risk compared to the Growth schemes. Capital appreciation in such schemes may be limited. It is ideal for investors who need some income to supplement their earnings & for retired people with a need for capital stability & regular income.
3) Balanced schemes: The aim of balanced schemes is to provide both growth and regular income as such schemes invest both in equities and fixed income securities in the proportion indicated in their offer documents. In a rising stock market, the NAV of these schemes may not normally keep pace or fall equally when the market falls. It is ideal for investors looking for a combination of income and moderate growth.
4) Money Market/Liquid schemes: The aim of Money market/Liquid schemes is to provide easy liquidity, preservation of capital and moderate income. These funds invest in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper, interbank call money & government securities. Returns on these funds fluctuate much less compared to other funds. These funds are appropriate for corporates & individual investors to park their surplus funds for a short term period.
5) Tax saving schemes (Equity Linked Saving Scheme – ELSS): These schemes provide tax incentives to the investors prescribed under the Income tax Act 1961 and promote long term investments in equities. Equity Linked Saving Scheme (ELSS) & Pension schemes launched by Mutual funds offer tax benefits. These schemes invest in equity & are growth oriented. It is ideal for investors seeking tax benefits.
6) Index Fund schemes: These schemes generally invest in a particular index such as the BSE Index, S&P NSE 50 Index. NAV of such schemes would rise or fall in accordance with the rise or fall in the index. Index fund schemes are ideal for investors who are satisfied with a return approximately equal to that of an index.
7) Sectoral Fund schemes: These schemes invest in the securities of only those sectors or industries as specified in the offer documents. E.g. Pharmaceuticals, IT, FMCG etc. The returns are completely dependent on the performance of the respective sectors in which investment has been made.
8) Fixed Maturity Plan:
Fixed Maturity Plans (FMPs) are investment schemes floated by mutual funds and are close ended with a fixed tenure, the maturity period ranging from one month to three/five years. These plans are predominantly debt-oriented, while some of them may have a small equity component. The objective of such a scheme is to generate steady returns over a fixed-maturity period and protect the investor against market fluctuations.
Systematic Investment Plan (SIP): SIP is a tool through which step by step investment of small amount of money at regular intervals can be made in various mutual fund schemes that would help investors in maximizing returns over a period of time.
Features of SIP in Mutual Funds:
- Small investment amount: Many top Mutual fund companies offer investors an option to invest extremely small amounts each month, depending on an individual’s capacity. Minimum application amounts are as low as Rs.500/-
- Investment on convenient dates: Most of the AMC’s offer investors an opportunity to systematically invest in various schemes on their chosen dates every calendar month. AMC’s offer upto 2-4 different dates for automatic investment in its schemes through SIP route.
- Timely payment through ECS: Investors can make timely payments each month by opting for ECS payment method.
- Direct credit of dividend & Redemption payments: AMC’s offer direct credit of dividend payment as well as credit of final proceeds on redemption, into investor’s bank account.
KYC Requirement for Mutual Funds
Recently, SEBI has made it mandatory for Mutual Funds to undertake “Know Your Client” compliance for all their investors. The KYC for MFs is being consolidated by CVL or CDSL Ventures Ltd. All investors in Mutual Funds need to complete the KYC process to be allowed to invest. Investors need to fill a form and submit it to the nearest CAMs or KARVY offices. You will need to provide a proof of residence and a copy of your PAN Card.
At IDBI Capital, you get to choose from a bouquet of mutual fund schemes to suit all your financial requirements.
Apply or redeem mutual funds units Online by logging in with your online trading account. You may also visit any of our branches in various cities for applying Mutual funds by filling up a physical application. For a list of our branch locations please click here.
Alternatively, you may call us on our Toll Free helpline 1800 22 33 66 to speak to our customer care executive for any kind of assistance.
To know more about Mutual Fund Click here
|Initial Public Offerings (IPO) is a process by which an unlisted company raises capital by offering its shares for sale to the public in the primary market. Once the issuance is completed, the stocks are listed for trading. An already listed company may also raise incremental capital from the markets; in this case the Public Issuance is called a Follow-on Public Issue or FPO.|
The funds raised through an IPO are used for various purposes like capacity expansion projects, diversifications etc. The issuer documents the proposed end use of the funds in a document called Red Herring Prospectus or RHP. The company needs to file the RHP with the Securities Exchange Board of India or SEBI for its approval to allow the issuer to start the fund raising process. An IPO can take either the book building method or fixed price method issuance.
Investments in the Primary markets require expert assistance. Through our IPO services, you can participate in the primary markets – either offline or online. We combine our capital markets insight and business knowledge to offer the correct advice. For investing online in any IPO, you need to have a trading account with us while for offline investing; you can simply walk in to any of our branches and submit the necessary forms, documents and payment instruments.
Who can invest in IPO’s:
The following categories of investors are eligible to invest in IPO’s:
- Resident Individual(s)
- HUF (Can apply only through Karta)
- Mutual Funds (Registered with SEBI)
- Banks & Financial Institutions
- Venture Capital Funds
- Provident Funds & Pension Funds
- FII’s (Registered with SEBI)
- Body Corporate & Societies
- Eligible employees
- Non-Resident Indians (on repatriation basis or non-repatriation basis), subject to applicable law.
Basic requirements for investing in IPO’s:
Investors who wish to apply for IPO’s need to furnish the following,
- PAN Number
- Depository I.D (DP ID), & Client ID ( Demat A/c Number)
- Bank A/c details (A/c no, MICR No & Bank branch) in case of *ASBA application
- Payment Instrument.
*ASBA – Applications Supported by Blocked Amounts (ASBA) facility.
**Application amount exceeding Rs.2.0 Lacs falling under the HNI category & the QIB categories have to compulsorily apply through the ASBA mode.
At IDBI Capital we provide Online as well as Offline IPO investing facilities
Research – You can access our research reports from our research desk on the upcoming IPOs. These reports will give you detailed information on all the new IPOs which would be hitting the market, and will guide you through your investments in them.
At IDBI Paisabuilder IPO research desk, we carefully analyze various aspects of an IPO like the track record of the company, its future business plans, the credibility of its management team, etc. and prepare research reports on the IPO to our clients.
You can also access various information on the forthcoming IPOs through our website.
To view IPO news, forthcoming IPOs links and lots more, click here
To know more about IPO Click here
|Fixed Income Products |
|A balanced investment portfolio needs to be based on your future cash flows, your expected cash inflows and cash outflows. Cash flows normally are influenced by your family responsibilities, the sources of your earnings and regulatory conditions like tax laws. |
While the returns from equity vary with the economic and in turn market conditions, the returns from debt or fixed income products hardly change once you have locked in and stay invested to the maturity of the instrument. Thus debt or fixed incomes help you reduce risk in your investment plan. Fixed-income products are designed to provide steady income over time and have features like coupon, maturity date and terms of interest payment and maturity.
Some of the Fixed-income products are designed Tax planning measure and approved by the government. Bonds of various Government backed companies as well as domestic corporates would be easily available for investments through IDBI Paisabuilder portal as and when they are on offer. Alternatively, you could also invest in debt instruments listed on the NSE and BSE using your trading account with us.
Following Bonds are readily available for investments to enable you to take the first step towards having a steady stream of income.
8% Savings (Taxable) Bonds, 2003.
Government of India had introduced 8% Savings (Taxable) Bonds, 2003 vide their notification No .F.4 (10) W&M /2003dated 21.03.2003 for the benefit of Resident Indians. These bonds are issued by IDBI Bank, State Bank of India, ICICI Bank and Axis Bank. These bonds are available for subscription round the year subject to a certain cap per investor. The interest earned on these is entirely tax free. Presently the GOI bonds pay annual interest of 8 % but can be changed by the GOI from time to time.
Click here to Know more...
REC Long term bond (under sec 54 EC):
Rural Electrification Corporation Ltd (REC Ltd) has come up with Non-Convertible Redeemable Bonds series VIII (2012-2013) with benefits under sec 54 EC of the Income-tax Act 1961.
Click here to Know more...
National Highways Authority of India (NHAI):- Capital Gain Bond:
National Highways Authority of India (NHAI) bonds are 3 years tax-free bonds that qualify for income tax exemption. It is rated “AAA/Stable” by CRISIL and “AAA (ind) (Affirmed)” by Fitch Ratings.
Click here to Know more...
|Non-Convertible Debentures (NCD) are debt instruments with a fixed tenure issued by corporates for raising additional funds. NCDs are pure debt instrument and are not convertible into equity shares at any point of time. The issuer pays a fixed interest at prescribed periodicity. NCDs normally carry a higher rate of interest compared to the convertible debentures.|
Features of NCD:
- NCD’s are normally issued in dematerialized form & are listed on the stock exchange so as to provide exit options to investors
- NCD’s are not subject to TDS unlike most bank & corporate fixed deposits
- The market prices of NCDs are influenced by the interest rate scenario and the issuer.
Who can invest in NCD’s:
- Resident Indian Individual(s)
- Hindu Undivided Family( HUF)
- Mutual Funds registered with SEBI
- Commercial banks, co-operative banks & regional rural banks incorporated in India
- Provident funds, Pension funds, Superannuation funds & Gratuity funds
- Indian Venture capital funds registered with SEBI
- Insurance companies registered with IRDA
- Bodies corporate, Companies, Societies, & Trusts (Trusts formed under Indian Trusts Act 1882)
|Flexi – Gold |
|Wish to bring down high costs of transactions? Let us help you reduce your brokerage charges. We offer you a set of Flexi Gold brokerage plans.|
As the name suggests, Flexi Gold provides flexibility in brokerage rates in line with your trading volumes over a period of time. If your trading strategy involves large volumes to capture the smallest and largest possible profit opportunities, Flexi Gold is a plan for specially designed for you. Flexi Gold is prepaid brokerage scheme for our online as well as offline clients. We have plans starting validity period of 3 months, all the way upto 12 months. All you have to do is estimate your expected trading volumes and the brokerage to choose an appropriate FG plan.
We charge you a fixed subscription amount which entitles you to specified lower brokerage rates for a specified time period. Depending on the total brokerage actually charged to you during the validity of the plan you a get a certain amount of the subscription refunded – the amount of refunds could be as high as the entire subscription fee paid upfront subject to certain conditions.
Benefits of Flexi Gold:
- Reduced Brokerage Rates For Entire Validity Period:
Flexi Gold scheme rewards you for trading more by providing you with lowered brokerage rates in both cash & derivatives segments & the rate are applicable for the entire validity period as per the scheme selected. They are as low as 0.10% for delivery based transactions and 0.01% for intra-day transactions
- Refund Of Up To The Entire Upfront Subscription Fee
On fulfilment of the minimum brokerage criteria, part of or the entire Upfront Subscription fees eligible for refund will be rolled over to next valid term or be reversed to your trading account as per client discretion.
- No Account Opening Fees:
With Flexi – Gold scheme trading account, all you need, is to give upfront subscription fees & your account gets opened free of charge.
- Exe Trading Platform:
Certain Flexi Gold schemes provide you with the right to use EXE based trading application i.e. Paisa Power Pro which has certain advanced features. Some of the features of the exe application are Customised Display, Advance Alert feature, Real time Charts & Indicators, Technical tools & many more.
- Other Value Added Services:
With Flexi – Gold scheme you are entitled to free research calls, transactional sms, mobile trading facility, dedicated Relationship Managers & even the ease of Call N Trade facility.
|Plan / Features
|Account Opening Charges
|EXE Trading Software (Per Year)
|Square-off Brokerage (Per Leg)
|Futures Brokerage (Per Leg)
|Options Brokerage (Per Lot per leg)
|Minimum Brokerage# (Per share per leg)
|Online Trading |
|IDBI Capital offers Online Equity & Derivatives trading facilities for investors who are looking for ease and convenience of a hassle free trading experience. The online trading system provides you with all the trading information you would require at any point of time, enabling you to take informed investment decisions.|
Gone are the days when you left orders with a broker, received confirmations on the price and quantity of the shares at the end of the day and the payment made upfront or received after delays. Your securities settlement took days to reflect in your account.
We provide you with three User friendly Trading Platforms for ease & convenience of your trading.
Now just log in and start trading!
Benefits of Online Trading
- Integrated platform that links your Bank, Demat and Trading Accounts.
- Trade from anywhere in the world
- Paperless transactions
- Saves time and money
- Access to analytical tools and statistics
- Access to research reports
- You can place orders even after the market hours
- Reduces your dependence on the broker/distributor
|NRI Services |
|IDBI Capital offers full suite of services to cater to the investment requirements of NRIs residing across the globe. Being the discerning elite, you deserve managing your investments with the ease and flexibility that you are used to. From your home away from home, we will help you stay in touch and always strive to provide you with the best investment opportunities in the Indian Financial Market through our Online Stock Trading platform, www.idbipaisabuilder.in|
Procedure for Account opening
- NRI Savings account:
IDBI Bank offers NRE and NRO savings account on repartriable and non-repartraible basis respectively. Click here to check the savings account opening procedure.
- NRI Demat account:
IDBI Bank and IDBI capital offers NRI Demat account on repartraible and non-repartriable basis. Click here to check the Demat account opening procedure.
- PIS account:
Portfolio Investment Scheme is an RBI designated mandatory route for NRIs/PIOs to invest in secondary stock market in India. As per the scheme the NRIs can purchase and sell shares and convertible debentures of Indian Companies on a recognised stock exchange by routing such purchase/sale transactions through their PIS account with a Designated Bank Branch. IDBI Bank Offers PIS account on repartraible and non-repartriable basis by granting PIS permission letter on behalf of RBI. Click here to check the PIS account opening procedure.
- Trading account:
IDBI Capital offers online and offline trading account to NRI. Online trading is not offered to U.S.A. & Canada based NRIs. Click here to check the trading account opening procedure.
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