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MF News Edelweiss Finance NCDs offer up to 2.05% commission

Edelweiss Finance NCDs offer up to 2.05% commission

The issue will open for subscription on July 24 and close on August 16, 2018.
Team Cafemutual Jul 19, 2018

IFAs can get brokerage of up to 2.05% on Edelweiss Finance non-convertible debentures (NCDs) depending on the category of investors and holding tenure.

The company plans to raise funds up to Rs.500 crore with an option to raise an additional Rs.1500 crore through a public issue of secured redeemable NCDs. The company is offering an attractive yield ranging from 9.45% to 9.85% per annum. The NCDs also offer a tenure varying from three to 10 years, with an option of monthly, annual and cumulative interest payouts.

The issue will open for subscription on July 24 and close on August 16, 2018.

The commission structure on Edelweiss Finance NCD varies marginally with the date of application. So, for the first three days of issues i.e. from July 24 to July 26, you can earn a commission of 1.55%, 1.80% and 2.05 % for three, five and 10 years, respectively if the application size is up to Rs.10 lakh i.e. retail investors. Similarly, for the application size exceeding Rs.10 lakh i.e. HNIs, you can get a commission of 1.30%, 1.55 % and 1.80% for three, five and 10 years, respectively.

Similarly, from fourth day onwards, you will get up to 1.95% and 1.70% for retail and HNIs applications, respectively for 10 year NCD. Remember that the commission amount will exclude GST.

Here is the table that will help you understand the tentative brokerage structure.

For retail investors

Date of application

10 years

5 years

 3 years

July 24 - July 26

2.05%

1.80%

1.55%

July 27 onwards

1.95%

1.70%

1.45%

 

HNIs

Date of application

10 years

5 years

 3 years

July 24 - July 26

1.80%

1.55%

1.30%

July 27 onwards

1.70%

1.45%

1.20%

 

In addition, you will get a special incentive of Rs.50 per application if you go online.

CRISIL and ICRA have assigned Edelweiss Finance a rating of AA/Stable (Double A).

Effective yield pre tax

Tenure

10 years - monthly and annually

5 years - monthly, annually and cumulative

3 years - monthly, annually and cumulative

Tentative yield

9.85%

9.65%

9.45%

 

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8 Comments
ANKIT MISHRA · 1 month ago
I think you should not disclose the commission structure openly into market with your Website, this will impact our business and also every time INVESTOR WILL demand for brokerage.
R Mathivanan · 1 month ago
As this website mostly viewed by ARNs, this may be a useful information for them. Already this information is available in the public domain. Openness & transparency are the hallmark of the professionalism . I do not see any reason to worry as this impairs one's business prospects.
VIPUL · 1 month ago
I AGREE WITH MR.ANKIT. AS AFTER ALL IT ALL ABOUT MONEY. IT IS OPEN SECRET MAJORITY OF THE CLIENTS ASK FOR KICKBACK. AS THEY FEEL IT IS THEIR RIGHT TO HAVE KICKBACK BECAUSE AGENT GET COMMISSION BECAUSE OF HIM.
Reply
Satish Kumar Shrivastava · 1 month ago
Need code for this issue.
SANJAY L JOTWANI · 1 month ago
I feel there is no need to discuss and disclose the commission of any products. As you will find none of the other industries disclose and discuss the commissions prevalent in their products. We need to grow together and hence do and dont are very much required in every industry.
chanpreet singh · 1 month ago
I also need code to empanel how to ??
Ramesh jangid · 1 month ago
I think news headline show NCD interest rate not commission
Tina agrawal · 4 weeks ago
How to sell your NCD online ?
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