Indian bank Ind Share Schem (IPO) - For Retail Investors

Ind Share Schem (IPO) - For Retail Investors

Target Group

Resident Individuals or group of individuals consisting of not more than 3 persons.
The applicant should have sufficient disposal for servicing the loan on allotment.

Purpose

For subscribing to IPO offered by select companies

Eligible Amount

Maximum Rs. 1 lakh per issue with a cumulative exposure ceiling of Rs.5 lakhs and with a cap of subscription of 1000 shares per issue for which loan could be extended.

Cash Margin : 50%

Interest w.e.f 11.08.2008

For less than 36 months - BPLR i.e. 14.00% (floating)

36 months - BPLR+TP i.e. 14.50% (floating)

Repayment

The borrower should adjust the loan within a period of 25 days. Post dated cheque for the loan amount to be obtained from the borrower.
In case of successful allotment of shares, repayment period may be extended upto 36 months (<35 EMI) at the option of the borrower.

Security

Pledge of approved shares (in D-Mat form) allotted by marking lien with the Depository Participant(DP)

Depository Account

The applicant should have a D-Mat account with IBMBS and all the shares are to be purchased through this account only.

Documents

* Details of D-Mat account with IBMBS Ltd
* Post dated cheque for the loan amount for subscribing to (IPO)

Others

Branch should ensure that the disbursement under the loan is made before the issue closing date by issue of Pay Order or DD as required in the Share Application form.

Ind Share Scheme (ESOP)

Target Group

Employees/Officials of select companies, which are offering the Public Issue. (Directors/Promoters or any outsiders of the issuing companies are not eligible)

Purpose

For subscribing to the employee quota of public issue offered by the companies

Eligible Amount

10 months gross salary or Rs. 5 lakhs whichever is less, per individual
(only to the permanent employees of the company issuing the shares)

Margin
10% (Margin shall be on the purchase price of the issue)

Interest w.e.f 11.08.2008
On case to case basis

Repayment

Not exceeding 36 EMI commencing from the following month of disbursement or upto the residual service of the employee whichever is less

Security

Pledge of approved ESOP shares (in D-Mat form) allotted by marking lien with the Depository Participant(DP)

Depository Account

The applicant should have a D-Mat account with IBMBS or with any other DP.

Documents

* Employer undertaking to recover the EMI and remit to the Bank, for loan for purchase of ESOP shares.

Other Terms

The shares eligible for financing under this Scheme are those listed on the Bombay Stock Exchange BSE(Group A & B shares) & the National Stock Exchange NSE

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