Discount Finance House India - Stock Holding Corporation

Discount Finance House India - Stock Holding Corporation

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  DISCOUNT AND FINANCE HOUSEOF INDIA LTD. (DFHI)
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  DFHI • Discount andFinance House of India Ltd. (DFHI), a unique institution of its kind, was set up in April 1988 by RBI, jointly with public sector banks and all India Financial Institutions as a sequel to Vaghul Working Group recommendations. • Main aim to develop the money market and to provide liquidity to money market instruments • The question of setting up of discount house in India was considered by the banking commission in the early 1970s it was thought that the need for a discount house in India can arise when the bill market develops sufficiently. • With the introduction of new money market instruments such as Certificates of Deposits and Commercial Paper, DFHI began dealing in these instruments as well.
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  ABOUT DFHI • DFHIwas incorporated on March 8, 1988 under the Companies Act, 1956 with an authorized share capital of Rs.100 crore subscribed by the RBI (Rs.51 crore), Public Sector Banks (Rs.33 crore) and All-India Financial Institutions (Rs.16 crore). • DFHI mobilises funds/resources from commercial /cooperative banks, financial institutions and corporate entities having lendable resources (which individually may not represent tradable volumes in wholesale market) which are pooled and lent in the money market. • DFHI serve as a base, to broaden the secondary market and give an assured liquidity to the instruments which is a pre- requisite for a developed money market. • DFHI with its large customer base and reach has provided higher liquidity to the borrowing institutions at market related rates as also helped the small banks, institutions and corporate entities to secure competitive price for their surplus resources.
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  PURPOSE OF DFHI With effect from 1992-93, DFHI was authorized to deal in dated Government Securities.  After DFHI was accredited as a Primary Dealer in February 1996, its operations significantly increased particularly in Treasury Bills and dated Government Securities.  During these years, DFHI opened its branches at Ahmedabad, Bangalore, Calcutta, Chennai, New Delhi and very recently at Hyderabad  It caters to the requirements of the small and medium sized institutions operating at these centres and at the same time integrating the markets at these regional centres with main money market at Mumbai  The share capital of DFHI is Rs 200 crores, which has been subscribed by Reserve Bank of India (10.5%), Public sector banks (62%) and Financial Institutions (26.6%).  The DFHI has been established to deal in money market instruments in order to provide liquidity in the money market.
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  OBJECTIVES OF DFHI To even out the liquidity imbalances in the banking system i.e. to balance the demand with the supply for short term finance in the money market.  To promote secondary market in short term money market instruments i.e.  To be an active trader in money market instruments rather than a mere repository, and thereby, impart improved liquidity to short term money market instruments.  To integrate markets at regional centers with the main market at Mumbai, through its network.
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  OBJECTIVES OF DFHI Provide safe and risk-free short-term investment avenues to institutions; DFHI being an institution promoted by the public sector banks/financial institutions and RBI, enjoys excellent credit rating in the market.  Provide greater liquidity to money market instruments.  Facilitate money market transactions for small and medium sized institutions who are not regular participants in the market.  DFHI provides the 'Constituent SGL' Account facility which enables even those entities which otherwise do not have an SGL Account facility with the RBI to reap the full benefits of investing in government securities.
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  Money Market Instrumentsin which DFHI Deals DFHI deals in the following instruments /products:  Treasury Bills  Dated Government Securities  Certificates of Deposit  Commercial Papers  Call (overnight) Money  Notice Money  Term Money  Derivative Promissory Notes of Commercial Banks  Interest Rate Swaps/Forward Rate Agreements
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  STOCK HOLDING CORPORATION OFINDIA LIMITED (SHCIL)
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  ABOUT SHCIL  Setup at the initiative of Govt. of India Major Shareholders are IDBI Bank Ltd, ICICI Bank Ltd, IFCI Ltd, SUUTI, LIC, GIC and Others  192 Offices across the Country Appointed by RBI as receiving office for GOI Bonds Only non-banking entity permitted by RBI to offer SGL services DP to GOI for various ministries, a/c in the name of 'President of India”
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  10 SHCIL BUSINESS Premier Custodian Marketshare of 30% of the value of assets under custody Assets in Custody (31/3/09) – Rs.4,22,209 Crores  About 21% of Market Capitalization of BSE Largest DP More than 6,00,000 Clients Compliance with Regulatory norms
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  11 SHCIL Operational Capabilities TransactionProcessing More than 1.4 Crore transactions last year Processes Approximately 50,000 transactions everyday SHCIL handles 40% of the value of transactions settled by NSDL in Stock Exchanges 1/3rd of the delivery based transactions of BSE and NSE Futures & Options Segment One of the largest Professional Clearing Members at NSE
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  INFRASTRUCTURE LEASING & FINANCIAL SERVICESLIMITED (IL&FS)
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  IL&FS  Infrastructure Leasing& Financial Services Limited (IL&FS) is one of India's leading infrastructure development and finance companies IL&FS was promoted by the Central Bank of India (CBI), Housing Development Finance Corporation Limited (HDFC) and Unit Trust of India (UTI). Over the years, IL&FS has broad-based its shareholding and inducted Institutional shareholders including State Bank of India, Life Insurance Corporation of India, ORIX Corporation - Japan and Abu Dhabi Investment Authority
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  IL&FS  IL&FS hasa distinct mandate - catalysing the development of infrastructure in the country.  The organisation has focussed on the commercialisation and development of infrastructure projects and creation of value added financial services  From concept to execution, IL&FS houses the expertise to provide the complete array of services necessary for successful project completion: visioning, documentation, development, finance, management, technology and execution
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  IL&FS FINANCIAL SERVICES The IL&FS Group’s financial expertise and capabilities vests in its wholly owned subsidiary IL&FS Financial Services Limited (IFIN). IFIN has emerged as India’s leading financial services house for structured products, project recourse financing and corporate infrastructure advisory
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  IL&FS FINANCIAL SERVICES LIMITED IL&FS Financial Services Ltd (IFIN) is a 100% subsidiary of IL&FS, with a combination of Investment Banking skill sets comprising of Debt Syndication, Corporate advisory and lending capabilities.  The mandate to IFIN is to provide value added Investment banking services to a select group of customers
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   The FinancialServices business comprises four principal components:  Investment banking business : is the fundamental driver of corporate relationships and is an amalgam of high yielding debt portfolio  Project Debt syndication business : is the principal wholesale debt distribution platform which has been instrumental in financial closure of large projects across a number of sectors.  Corporate Advisory services business : mobilizes private equity and provides other advisory services to customers  Project Finance Advisory : works closely with the other business to develop and execute mandates in infrastructure sector and support new initiatives of the IL&FS Group