NBFC (Non-Banking Finance Company) Financing of Shares with a tie-up with a brokerage firm can be a daily 10 minute operation.
Similarly routing securities from the Client’s DP to the NBFC and later transferring from NBFC to Client for onward transfer for Securities Payin all this can be done in a safe and secure manner so that control of all the funded collateral stays with the Funding Company.
Integrates with your broking operations and works great for brokers who already use SharePro - with SharePro managing the NBFC funding is just a 10 minute job.
When such funded shares are received from the broker they are directed into the Client's POA Account and thereon into the NBFC DP Account as security for funds disbursed.
When funds are paid out by broker after selling funded shares, the funds are directed into the Client's POA Account an thereon into the NBFC.
Once a client is enrolled by the NBFC company, for the client it works like a Line of Credit. A funding percentage is fixed subject to a ceiling. After this whenever the client makes a purchase, SharePro does an assessment and provides the "fundable" amount. The paramaters required to assess the funding amount can be modified.
When due to market movements share value goes below the preset limit of the funded amount OR if the client sells the funded shares, then those shares are transferred from the NBFC DP Account to the Client's POA Account and then on to the Broker's Pool Account.
After computation of the Fundable Amount, the funds are released from the NBFC to the Client's POA Account and thereon to the Broker's Bank Account. Both movements are initiated by SharePro and controlled by the broker.
All standard SharePro Desktop features are available including DP instruction file generation, ECS file generation, BRS reconciliation, etc.
NBFC (LASS) Financing of Shares with a related brokerage firm calculates the risk, feasibility for fresh funding, routing funds to clients for onward transfer to the broker and realizing funds from the clients account to the NBFC – all this can be a simple operation
