LOAN AGAINST SECURITIES
We grant loans against securities to persons against specific marketable securities which is offered to customers, who require liquidity against their investments in specific marketable securities including equity shares, units of mutual funds, fixed income instruments (such as government securities, corporate bonds with a long term rating of AA- and above) and others (including units of AIFs and market linked debentures). The maximum tenor of such loans is up to 30 months.
We provide loans to employees of corporates, empaneled with the Edelweiss group, to fund acquisition of shares, on the exercise of options granted to them. The loans granted are secured by pledge of the shares issued to such employees on the exercise of the options granted to them. The tenor of such loans is typically for a period up to 30 months. The loans can only be used for purchasing the shares on exercise of the ESOPs.
MARGIN TRADE FINANCING
We provide customers who meet our specific credit criteria with margin trade financing. Such customers are required to maintain a margin in the form of securities with us. We would provide the customers with short term financing for the purchase of securities and holding positions against such margin. The tenor of such financing facility is typically thirty months. The facility can only be utilised for investing in capital markets.
Public Offering (PO) Financing
PO financing is a short-term credit offering provided to clients who wish to subscribe to the public issue. The most commonly used public issues are Equity IPO, Bond/NCD IPO, Buy backs, Open Offers etc. We provide customers, desiring to subscribe to initial public offerings of companies as well as other fund raisings by listed companies, with short-term loans, against margins maintained by such customers with us. Post allotment of the securities to our customers, such shares are to be pledged in our favour as security against the loan availed. The tenor of such loans would be generally up to 30 days. The loan can only be used by the borrower for the purchase of the securities.