ABFL CMG Products - ChannelPartners

Aditya Birla Finance - Capital Market Solutions
2011
Aditya Birla Finance
Copyright Aditya Birla Finance Limited 2010
Our Strengths
Trust Speed of execution Flexibility Seamlessness Confidentiality

Capital Market Solutions

Loan Against Securities (Term Loan)
Loan Against Shares (LAS) Loan Against MF units (LAMF) Loan Against Bonds Loan Against PMS of Birla Mutual Fund Loan Against Insurance Policies
Line of Credit against Securities (Overdraft) LASi (Margin Funding) Promoter Funding ESOP Funding IPO Funding (Margin Funding for investment in primary market) Cool Cash (Margin Funding for investment in mutual fund)

Loan against Shares/MF units/Bonds

Provide liquidity against equity shares, MF units, Bonds Target audience: HNIs, Companies, Professionals, Brokers Provide funds after keeping the stipulated margin (15% to 60%) Tenure of the loan is 3 - 12 months with put/call option Interest rate is either fixed or floating
In case of floating rate, the interest is reset at the end of every 91 or 182 days Interest is payable monthly and principal is repaid as a bullet payment at the end of tenure
Single party/borrower group exposure Turnaround time is approx. 7 days from the date of receipt of required documents by ABFL Comprehensive list of approved shares and mutual funds (MF units must have daily exit option) Standard loan agreement with PDCs

Line of Credit Against Securities (overdraft)

Provide overdraft facilities against approved stocks/ MF units/bonds Interest on actual funds utilised Documentation similar to LAS Competitively priced Customised disbursement & repayment options

LASi (Margin Funding)

Finance facility for purchase of shares where clients have to pay only margin & MTM and the rest will be paid by the financer How does it work ?
If you want to buy Reliance shares worth Rs. 100,000, you have to pay margin of Rs. 30000 to ABFL & the balance amount is paid by ABFL on your behalf Margin can be paid in form of cash OR approved stocks
Margin can be of two kinds:

Cash Margin Stock Margin: Stocks are valued after applicable haircut i.e. If market price of stock is Rs. 100 & haircut is 30% then stock will be valued at Rs. 70 for calculation of margin for LASi. If client gives approved shares valued at 30 after applicable haircut, he can further buy approved stocks worth Rs 70, without paying any cash.

CASH MARGIN
Client Margin in Cash Rs. (A) 30 Value of Total stocks as at End of Day Rs. (A) + (B) 100 70 End of day Client loan of Rs.
Funding by ABFL Rs. (B) 70
Total Purchase Rs. (A) + (B) 100
At EOD client will have total stocks of Rs. 100 & loan of Rs 70. i.e. we will be funding 70 % against total stocks of Rs. 100
STOCK MARGIN Stock Valuation Post Haircut (A) Value of Total Stocks as at End of Day Rs. (A) + (B)
Funding by ABFL Rs. (B)
Total Purchase Rs. Only (B)
End of day Client loan of Rs. 100
30*
100
100
130
At EOD client will have gross total stocks of Rs 143 (100+43) & loan of Rs 100. Market Value of stock Pre haircut is Rs 43, Post haircut @ 30% is Rs. 30 ( 43-30% of 43)

Promoter Funding

Provide LAS to promoters or their investment cos. Can facilitate market transactions, creeping acquisitions Provide market intelligence USPs:
Strong Chinese walls (Need to maintain utmost confidentiality) Speed Trust : Client feels secured for his securities

ESOP Funding
Enables you to buy your company ESOPs with ease Funding against approved scrips at applicable margin The loan would start from the date on which the ESOP amount is paid by ABFL to issuer company till the receipt of payout on the sale of shares or settlement of dues Interest would be charged only on ABFLs contribution of loan Client is required to top-up margin in case of any shortfall

IPO Funding
Enables you to apply in public issues with marginal investment ABFL funds the balance application amount Margins and interest rate are specific for each IPO Wholesale application increases allotment chances substantially One time loan agreement (applicable for 3 financial years) for setting up the loan limit

Cool Cash
Investor can multiply his subscription in MF schemes by just providing margin to ABFL Client can invest up to 4 times of cash liquidity (margin of 10% to 40% on investment amount) Client has to pay the interest only on the financing amount Loan repayment can be done either by liquidating investments and/or from his own resources. Special purpose bank account to be opened in case of investment in dividend payout scheme Standard loan agreement with PDCs

Thank You


ABFL CMG Products - ChannelPartners

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ABFL CMG Products - ChannelPartners

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Aditya Birla Finance - Capital Market Solutions

Aditya Birla Finance

Copyright Aditya Birla Finance Limited 2010

Aditya Birla Finance

Capital Market Solutions

Aditya Birla Finance

Loan against Shares/MF units/Bonds

Aditya Birla Finance

Line of Credit Against Securities (overdraft)

Aditya Birla Finance

LASi (Margin Funding)

Margin can be of two kinds:

Aditya Birla Finance

Funding by ABFL Rs. (B) 70

Total Purchase Rs. (A) + (B) 100

Funding by ABFL Rs. (B)

Total Purchase Rs. Only (B)

End of day Client loan of Rs. 100

Aditya Birla Finance

Aditya Birla Finance

Aditya Birla Finance

Aditya Birla Finance

Aditya Birla Finance

Aditya Birla Finance

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