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About Capital Market Services for Brokers

  • Enhanced Clearing Services for Currency Derivative Brokers
  • HDFC Bank is the foremost clearing bank for the currency derivative segments of leading exchanges like National Stock Exchange of India Limited (NSEIL), BSE Limited (BSE), and Metropolitan Stock Exchange of India (MSEI). Leveraging extensive expertise in clearing operations, HDFC Bank is dedicated to meeting the diverse needs of intermediaries, especially brokers in the currency derivative market. Our comprehensive range of products includes tailored solutions for working capital requirements and structured products designed to meet specific clearing member needs. For detailed information, please reach out to:
  • Arun Bhura at 9339838461
  • Xersers Davar at 9328209629
  • Samit Mehta at +91-9323851617
  • Comprehensive Clearing Services for Capital Market Brokers
  • HDFC Bank Limited stands as the leading clearing bank for National Stock Exchange of India Limited (NSEIL) and BSE Limited (BSE), offering a wide array of products and services in the capital market business. We also serve as a clearing bank for other prominent Indian stock exchanges, including Calcutta Stock Exchange. Our Capital Market Division is staffed by highly experienced professionals trained to handle the dynamic and urgent requirements of clearing members with precision and efficiency.

Key Features of Capital Market Services for Brokers

Settlement Activities

HDFC Bank is a prominent settlement banker for the capital and commodity markets, with dedicated relationship managers overseeing key relationships from major locations. Our banking services cater to:

  • Trading cum clearing members in equity, derivatives, currency, mutual fund segments, and commodity exchanges.

  • Trading members of professional clearing members (PCMs).

  • Sub-brokers, remissiers, and authorised persons of clearing members.

  • Clients of clearing members.

For further information, contact us at Capitalmarkets@hdfc.bank.in

Customised solutions

Structured Products

  • HDFC Bank provides tailored financial products to fulfil brokers' working capital needs for their exchange-related obligations. The funding comes with competitive interest rates, subject to the bank's internal credit assessment process and RBI regulations. For additional information, please contact us at Capitalmarkets@hdfc.bank.in

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Bank Guarantees

  • Bank guarantees are issued to fulfil various exchange requirements, including base capital, security deposits, and margin obligations as mandated by the exchanges.They offer a reliable financial safeguard. They enhance trust and compliance, ensuring seamless operations in trading and investment activities.
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Loan Against Securities

  • HDFC Bank offers competitive overdraft facilities to brokers against shares, catering to their working capital needs. These facilities adhere to RBI's margin requirements and internal credit assessment norms. Additionally, we also provide Overdrafts against Fixed Deposits.
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Payment Gateways

  • The payment gateway, also known as the interface, serves as a platform where users access the internet, visit a broker's internet trading portal, and conduct transactions. These transactions' financial aspects are processed through the designated bank accounts of the sender and recipient.
  • We offer two models of payment gateway services to brokers in our segment, tailored to their specific needs.

    • External Payment Interface (EPI):

  • EPI enables brokers to accept online payments from their clients or customers who hold HDFC Bank accounts with NetBanking passwords. This facilitates secure online transactions.

    • E-Broking/Server to Server Model:

  • This model is suitable for brokers who wish to recover only partial funds from clients for trade execution, or for transactions involving non-resident clients. The E-Broking model allows brokers to place funds on hold or block them, and then release or transfer them based on specific requests. The interface protocol involves the exchange of XML messages between the bank and the external entity.
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ENet

Payment gateway or interface, is essentially a platform wherein an individual logs on to internet, goes to a broker's Internet trading portal and transacts as desired. The underlying monetary consideration of the transaction would be routed through the designated bank accounts of the originator and beneficiary of the transactions.
There are two models of payment gateway that we offer to brokers of our segment. The products are designed keeping in view the needs and requirements of the segment.

External Payment Interface (EPI):

EPI is a facility which provides the broker with the option of accepting online payments for online purchases made by his clients / customers who are HDFC Bank account holders having Net Banking passwords.

E Broking model (Server to Server):

Ebroking model is provided to brokers who are interested in recovering only partial funds from the client for execution of trades. The model is also suitable for Non-resident client transactions. The E broking model is basically developed around the need to place funds on hold / block the funds & then release or / & transfer the same based on request. The interface protocol is based on the exchange of XML messages between the bank and the external entity.

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Salary Upload

  • If your Salary Accounts are held at HDFC Bank, you can easily make salary payments to your employees by simply uploading a file through the CMS - disbursement module. This eliminates the need to provide a letter and a floppy disk to the branch, saving you considerable time. For further information, please contact us at: Capitalmarkets@hdfc.bank.in
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More About Capital Market Brokers Services

The features of Capital Markets include the trading of long-term securities, such as stocks and bonds, which are issued by corporations and governments to raise capital. These markets are essential for fostering economic growth by enabling companies to access funding for expansion and innovation. Capital market services are characterised by liquidity, allowing investors to buy and sell securities easily. They also provide price transparency, as security prices are determined by market forces. Additionally, capital markets are regulated to ensure fair and orderly trading and to protect investors' interests.

Capital market services offer several benefits to both investors and issuers. For investors, they provide opportunities to invest in a diverse range of securities, which can help in achieving financial goals and building wealth. Capital Markets also promote liquidity, allowing investors to buy and sell securities easily. For issuers, Capital Market services in banks offer a means to raise capital for business expansion and investment in new projects. They also provide access to a large pool of potential investors, increasing the chances of successfully raising funds. Additionally, Capital Markets help with price discovery, as securities are traded openly, reflecting market demand and supply.

To apply for Capital Markets Services at HDFC Bank, you can visit the bank's website and explore the range of services offered. These services are designed to meet the needs of investors and issuers in the capital markets. Whether you are looking to invest in securities or raise capital for your business, HDFC Bank provides a range of solutions tailored to your requirements. By visiting the website, you can learn more about the services available, access application forms, and get in touch with a representative for further assistance.

Frequently Asked Questions

Capital Market services in Bank refer to a range of financial services and products designed to facilitate trading in financial instruments like stocks, bonds, and derivatives. These services include brokerage services for buying and selling securities, investment advisory services, underwriting of new securities issues, and investment management services. Banks play a crucial role in the capital markets by providing liquidity, market-making, and investment opportunities for individuals, institutions, and corporations.

Clearing operations in a bank involve the process of exchanging information, funds, or securities between different banks to settle transactions. This process ensures that transactions between different parties are completed smoothly and efficiently. Clearing operations typically involve the verification of funds availability, the transfer of funds between accounts, and the reconciliation of accounts to ensure accurate record-keeping. Banks act as intermediaries in clearing operations, facilitating the smooth flow of transactions in the financial system.

The four main functions of the Capital Market services in bank are:

  • Capital Formation: The Capital Market facilitates the raising of long-term funds by companies and governments through the issuance of stocks, bonds, and other financial instruments. This process helps in funding investments in infrastructure, innovation, and growth. 
  • Risk Sharing: Investors can buy and sell securities in the Capital Market, allowing them to diversify their investment portfolios and spread risk. This risk-sharing mechanism benefits both investors and issuers by reducing the overall risk of investment. 
  • Price Determination: Capital Market services help in determining the prices of financial assets based on supply and demand. Prices reflect the perceived value of an asset and are influenced by various factors such as market conditions, economic indicators, and investor sentiment.
  • Corporate Governance: The Capital Market plays a crucial role in promoting good corporate governance practices. Companies that raise funds from the Capital Market are often subject to regulatory requirements and disclosure norms, which enhance transparency and accountability. This, in turn, helps in building investor confidence and trust in the financial system.