- A FREE of cost 2-day line of credit for Buying Stocks
- Generates huge Savings in Interest for Customers
- Ensures flexibility and efficient utilization of capital for traders and investors
- Generates almost 10x value for customers v/s free delivery propositions
3rd June, 2020, Mumbai: Samco Securities Limited, one of India’s leading discount stock brokers launched a revolutionary product called BTPT or Buy Today, Pay in Two Days today for investors buying stocks. BTPT is a facility that allows investors to buy delivery shares today by paying for only an initial margin and pay for the outstanding margin within 2 working days from the date of purchase completely FREE OF COST.
“Currently, most brokers insist on paying 100% upfront margins when clients buy stocks for delivery in the cash markets. This is despite the fact that exchanges follow a T+2 settlement cycle where only a part of the margin (usually 20-25%) needs to be settled upfront but the balance (75-80%) can be paid on T+2 days.
Once you pay 100% upfront margins for your stock purchases on T Day, investors stand to lose on the accrued interest for 2 days. This interest amount could be huge over a period of time. BTPT enables saving this interest which can be far more than zero brokerage on delivery.” said Jimeet Modi, CEO, Samco Group on the launch.
As an example – In case a client wants to buy 2000 shares of a company at Rs. 500 per share on Trading Day, then he/she shall be required to put up approximately Rs. 200000 in margin on T day and the balance Rs. 800000 can be paid by him on T+2 i.e. the settlement day.
Illustration of Interest Savings for Customers
| Date | Current Funding Requirement | Funds Required under BTPT | Additional Amount in Bank | Savings Interest earned @ 4% p.a. for each day |
| Day 0 | 10,00,000.00 | 2,00,000.00 | 8,00,000.00 | 87.67 |
| Day 1 | – | – | 8,00,000.00 | 87.67 |
| Day 2 | – | 8,00,000.00 | – | – |
| Total Interest Earned Extra for 2 days with BTPT | 175.34 | |||
By holding the outstanding sum in your savings account for additional 2 days, investors can gain a good interest amount, thereby making BTPT product superior as compared to any brokerage-free trading model available in the market. Investors also benefit by utilizing their capital efficiently.
This facility is absolutely free for all Samco clients and is applicable to a select list of 300 stocks.
