Stockinvest

Stockinvest First introduced in March 1992, the scheme was designed by the State Bank of India at the behest of the Securities and Exchange Board of India. It is essentially a legal, non – negotiable instrument like an account payee cheque, for subscription to capital issues. An investor can buy these from an issuing bank provided that he holds an account there. The money remains in the investor’s account, earning interest, till such time as allotment is made. Only then is the investor’s account debited and any refund on the application money is freed from the bank’s lien. The scheme thus prevents promotes of public issues from making a tidy packet from interest income, and also discourages them from delaying allotment or refund.

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