current account for IPO

cseguide · 1 current account for IPO Tue Jul 05, 2011 9:25 pm

cseguide

Vice President - Equity Analytics

Posts : 1332
Equity Stars : 6387
Reputation : 56
Join date : 2011-04-20

for past ipos I paid money from a bank draft. but when we take a bank draft we want to pay for it ( around Rs 350-800). but for VONE , PABC gave it free of charge. dear experts please give your idea what is the best bank for opening a current account only used for IPOS. I mean without much cost and conditions.

dewminigamlath · 2 Re: current account for IPO Tue Jul 05, 2011 10:05 pm

dewminigamlath

Manager - Equity Analytics

Posts : 126
Equity Stars : 4923
Reputation : 18
Join date : 2011-06-12
Age : 36
Location : Yakkala

You said PABC gave the bank draft free of charge for VONE. Please tell me which branch, because I was charged Rs.250 for the same at PABC Gampaha. I would definitely want to complain about this.

Further, Seylan Bank issued bank draft free for the Browns Investments IPO. Of course, they were the bankers to the offer, and I think any bank other than official bankers to an offer will charge commission for bank drafts. (In the VONE case for me, even the official bankers charged commission...!)

mark · 3 Re: current account for IPO Tue Jul 05, 2011 11:04 pm

mark

Expert

Posts : 2677
Equity Stars : 9761
Reputation : 423
Join date : 2011-02-04
Age : 33
Location : Hell....

@cseguide-normally bankers to the share issue give the bank draft free of charge,but if they say they charge more than 100Rs,go to BOC and get a draft..only 100rs for 100,000Rs,defa not more than that,btw the draft charge is varying according to the value of draft..

@dewminigamlath-no PABC cant charge draft charges to the VONE IPO,the free of charge rule is applicable for every branch..

note-there is no mandatory to charge or not charge draft charges,it will be decided by the bank,not from the branch...

widanage · 4 Re: current account for IPO Tue Jul 05, 2011 11:06 pm

widanage

Senior Equity Analytic

Posts : 60
Equity Stars : 4904
Reputation : 29
Join date : 2011-03-19
Location : Timbuktu

cseguide wrote:for past ipos I paid money from a bank draft. but when we take a bank draft we want to pay for it ( around Rs 350-800). but for VONE , PABC gave it free of charge. dear experts please give your idea what is the best bank for opening a current account only used for IPOS. I mean without much cost and conditions.

In General, bankers to the offer provides the bank drafts free of charge. If you are only using it for IPO's consider the following factors. I assume that you are depositing your proceeds to your saving's account.

1. All banks charge a minimum balance fee for the current accounts. For the same bank the minimum balance varies from branch to branch. (HQ or Corporate branch requires a higher minimum balance than a remote branch)

2. Initial deposit also varies as the above.

3. Check the above two conditions first because you have to idle the money unless you operate it.

4. Pick a bank with who has sweeping facilities between current account and the savings account. Set your sweeping limit at the minimum balance of the CA. You may earn some interest above the minimum balance.

5. Alternatively, if you have a fixed deposit at the bank. You can ask to mark an overdraft limit on your account. Then you can keep the balance at zero without paying the minimum balance fee. Unless you overdraw you do not have to pay interest.

6. If you have a plan to trade more in future pick a bank which has internet settlement facility directly to your broker.

7. Cheque leaf will also a cost (less than bank draft). Please keep that in mind too