What are the advantages of investing online through Bonanzaonline IPO & MUTUAL FUND?

Bonanza Portfolio Ltd. brings to you a state-of-art online investment platform through www.bonanzaonline.com, so that you can make the most of the opportunities in today's markets. What ever be your choice of investment, Bonanza offers you paperless, safe, transparent and easy way to invest. The www.bonanzaonline.com Online IPO Mutual platform offers a bevy of incomparable advantages and making the experience of investing online swift, efficient and even pleasant.

www.bonanzaonline.com gives you an added advantage to enjoy the reach of our distribution network comprising of more than 600 outlets spread over 300 cities catering to over 1,00,000 clients. Every investor is unique, and no two investors follow the same investment pattern. www.bonanzaonline.com provides thorough and unbiased research to help investors take informed decisions. With daily, weekly and monthly newsletters and recommendations on SMS, you will truly benefit from our research expertise.

All these will be made available to you from www.bonanzaonline.com at the comfort of your home or office.

What are the features of Bonanzaonline IPO & MUTUAL FUND?

1. Hassle Free and Zero paper work (after registration).
2. Online fund transfer.
3. Online portfolio viewing and tracking.
4. Automatic updation of allotment status.
5. Direct credit of shares, units to demat account and/or refund in bank account of the client..
6. Single registration for trading, IPO and Mutual Fund (Online Trading Clients).
7. In-depth analysis of IPO & Mutual Funds (on our website www.bonanzaonline.com).

I am already registered as an online trading client with Bonanza. Do I need to register again for Online IPO & MUTUAL FUND Facility?

No. As an Online Trading Clients (Max or Value), Bonanza brings you the convenience of applying in IPO & Mutual funds through the Online IPO & Mutual Fund facility.

You can directly login through Web Link provided for the Online Mutual Funds & IPO on the Bonanza Value Trading Screen or can also login from “Apply Online” in IPO or Mutual Fund menu on our website www.bonanzaonline.com.

There is no separate Login ID for the online Trading clients.

I am already registered as an offline trading client with Bonanza. Do I need to register again for Online IPO & MUTUAL FUND Facility?

For the Offline Client the registration formalities will have to be completed for online IPO & Mutual Fund Facility. Please follow the steps as given below.

You have to register with your Offline trading back-office code as your login ID.

Register online free with bonanzaonline.com by providing all necessary personal details with bank a/c for online Mutual Fund and IPO.

Download the POA from “Register Online MF-IPO” in IPO or Mutual Fund menu from our website www.bonanzaonline.com. Fill up the POA and attach Copy of your Pan Card and address proof. Forward all documents to your nearest Bonanza branch/office. After receiving POA & other documents, Your Account will be activated for online investments and an email confirmation will be sent to you with your Login ID & Password.

You can also contact your nearest Bonanza branch/Office. Our representative will contact you and assist you for the registration formalities.

I am not a registered client of Bonanza. How do I register with Bonanza for Online IPO & MUTUAL FUND Facility?

Register online free with bonanzaonline.com by providing all necessary personal details with bank a/c for online Mutual Fund and IPO.

Download the POA from “Register Online MF-IPO” in IPO or Mutual Fund menu from our website www.bonanzaonline.com. Fill up the POA Forward all documents Copy of your Pan Card and address proof. to your nearest Bonanza branch/office.

The POA will have to be signed by all the holders of the account. If your Demat account is in joint name the registration has to be in joint name in the same order of the demat holding.

You can also contact your nearest Bonanza branch. Our representative will contact you and assist you for the registration formalities.

After receiving POA & other supporting documents, Your Account will be activated for online investments and an email confirmation will be sent to you with your Login ID & Password.

How do I apply for Mutual Fund online through Bonanza?

You can also apply for shares in a Mutual Fund online, from the comforts of your home or office or anywhere else. A flow chart of the procedure for applying Mutual Fund online at Bonanza is as follows.

Will I get an online confirmation of my transactions?

You will be required to answer certain questions to prove your identity, when you contact your nearest Bonanzaonline branch. You may also email us at feedback@bonanzaonline.com. This is to prevent malafide requests and misuse of your account. When you have proven your identity, your old passwords will be immediately deactivated, and we will generate new passwords and mail it to you in a secure sealed cover.

You will have to change your passwords again before initiating the first trade through your new passwords.

Is there a minimum transaction amount for each scheme?

As decided by the fund house, there is a minimum transaction amount indicated against each scheme. You will get to see the minimum transaction amount when you are placing the buy order for that scheme.

Who all can use this facility?

All users, whose accounts are activated, can use the same login Id and password to invest in Mutual Funds. You can also invest in units of a Mutual fund from your Non-Pins NRE/ NRO account.

I do not have an account with you but would like to invest in Mutual Funds. What do I do?

You need to register with us and provide us with certain details. Once your account is activated, you can start investing in Mutual Funds online.

How do I purchase mutual funds online?

When will I be able to see my purchase details?

The details of your transactions will be immediately updated in your order book. The entry in your portfolio will be displayed once the order is processed.

How do I redeem my Mutual Fund scheme units?

Type your Login ID and password to log in the MF Trading section. Click on redemption. You will now see all the schemes available for redemption from the fund house. Select the mutual fund scheme that you wish to sell.

How does my buy order get processed?

The number of units to be allotted - in case of purchase requests - is determined by dividing the amount invested by the applicable NAV based sale price. Most funds price their units on a prospective basis, i.e. you get to buy units at a price to be determined in the future. For this purpose each fund fixes a cut-off time. Applications for purchase or redemption submitted before the designated time are processed at a price linked to the NAV of that day (which is announced at the end of that day) while applications submitted after the cut-off time are processed at a price linked to the NAV of the following day. This cut-off time determined varies from fund.

Will TDS be deducted on the redemption of units?

In case of NRI investor, TDS will be deducted on the sale proceeds. The TDS will deducted depending upon whether it is a short-term capital gain or long term capital gains. For more details, please refer to the tax queries section on our site (Link to tax queries)

Will TDS be deducted on dividend received?

No, TDS will not be deducted on Dividend payments for both Resident as well as NRI's.

If I change my address, what do I need to do?

For change of address, you will have to send a mail to us mentioning your login ID, your old and new addresses. Please ensure to attaché a scanned copy of the address proof for the new address.

Can I avail nomination facility in Mutual Fund schemes purchased through you?

Yes. The nomination facility is available in Mutual Fund schemes.

What is an IPO?

When private companies i.e. companies that are wholly owned by their promoters, invite the public to subscribe to their shares, this issue of shares is called an Initial Public Offering (IPO). The shares issued could be in the form of fresh equity and/or the promoters sell a portion of their equity to the public. These shares are then listed on a stock exchange where they can be bought and sold by investors. IPOs are a very popular way of investing in the stock market as they allow investors a simple entry route to buying stocks providing liquidity for easy disinvestment.

What is an FPO?

Existing listed company makes either an offer for sale to the public or a fresh issue of shares. Such offer or issue of shares is called Follow on Public Offer (FPO).

Why do companies come out with IPOs or FPOs?

An existing or a newly incorporated company (either private or public) requires funds, in order to expand its existing facilities, undertake a new project, repay a high cost loan or simply augment its working capital (i.e. funds required for day-to-day business activities). In order to mobilize funds for such activities it may offer its shares to investors through an IPO or FPO.

How is the issue price decided on?

A company that is planning an IPO appoints lead managers (SEBI-registered merchant bankers who are responsible for helping the company execute the IPO) to help it decide on an appropriate price at which the shares should be issued. There are two ways in which the price of an IPO can be determined – either the company, with the help of its lead managers, fixes a price or the price is arrived at through the process of book building.

What is a Fixed price IPO?

In this case, the company, together with the lead managers, decides at what price they would like to issue the shares. To arrive at a suitable price, the company’s past performance is assessed using financial ratios. The share prices of competitor companies’ equities and others in the same league are also taken into consideration when the IPO price is fixed.

What is a Book-building?

In the book building approach to price setting, the price of an IPO is demand driven. The issuing company sets a floor or base price and a band within which an investor is allowed to bid for shares. The spread between the floor and the cap of the price band cannot be more than 20 per cent of the floor price. Then the company, through its lead managers, invites price bids from investors along with the quantum of securities that they would be willing to purchase at that price.

While the issue is open, all investors must submit their bids along with payment for the quantity of shares they have bid for. The payment due is calculated at their respective bid prices.

One of the lead managers, who is called the ‘book runner’, maintains an order book in which the investors demand and price bids are registered. Once the issue period is over, the book runner demarcates a cut off price, i.e., a price at which the issue will be fully subscribed on the basis of the quantity and price bids received. All bids that are below the cut off price are ignored and investors who have bid at the cut off price or above can purchase shares that have been allotted to them at the cut-off price. SEBI guidelines permit only retail individual investors to apply at the cut off price.

How long will be the IPO offers remain open?

Public issues are kept open for at least 3 and not more than 10 working days. In the case of book built issues, the minimum and maximum period for which bidding is open is 3–7 working days and this can be extended by 3 days, in case the price band is revised. Public issue of some infrastructure companies can be kept open for a maximum period of 21 working days.

How will I come to know about allotment and refund?

All public issues with a value in excess of Rs 10 crore are compulsorily in the demat mode. So, if you choose to apply for such issues, you must have a demat account and mention your depository participant’s name and ID number and your client ID details in the bid/application form. In the case of fixed price issues, you are intimated through a Confirmatory Allotment Note (CAN) or a refund order, within 30 days of the closure of the issue.

In the case of book built issues, the registrar ensures that investors receive a CAN in case they have been allotted shares and the demat credit or a refund, as applicable, within 15 days of the closure of the issue. Then the stock is listed on the stock exchange within 7 days from the finalization of the issue.

Do I need to fill up any applications while applying for IPOs?

No. You can apply for IPOs without going through the tedious process of application filling, cheque signing and submission. All you need to do is fill in the requisite details in the online screens of IPO application. We will do the paperwork for you on the basis of the information provided by you. This is done on the Authority of the Power of attorney executed by you in favour of Bonanza Portfolio Ltd.

When will I able to sell shares allotted IPO?

The equity shares allotted in the IPO are listed on the stock exchanges within 7 days from the finalization of the IPO. Generally, the total processing time between the closure of a book built issue and listing is around 3 weeks. In case of fixed price issue, it would be around 37 days after closure of the issue. Once the listing takes place you can sell the shares in the market.