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A financial arrangement in which a bank or financial institution, or an export credit agency in theexporting country, extends a loan directly to a foreign buyer or to a bank in the importingcountry to pay for the purchase of goods and services from the exporting country. Also known asfinancial credit. This term does not refer to credit extended directly from the buyer to the seller(for example, through advance payment for goods and services).

The Practical example is that foreign Bank makes payment to exporter based on either Letter of Undertaking from the Importer bank or based on their risk on Importer. Letter of Undertaking issimply confirmation by a bank here in importer country to pay to exporter bank thus exporterbank risk get reduced. The Letter of undertaking is issued by Importer bank on the basis of risk on Importer.

Simply , Importer Bank takes risk on Importer , This bank sends LOU to exporter bank which inturn takes risk on Importer bank and makes payment. On final day Importer bank recover moneyfrom importer and makes payment to exporter bank.

This all exercise is done to exploit existence of interest rate arbitrage.

Read more: http://wiki.answers.com/Q/What_is_buyer%27s_credit#ixzz1NMihLCJO 

Buyer's credit is the credit availed by an Importer (Buyer) from overseas Lenders i.e. Banks andFinancial Institutions for payment of his Imports on due date. The overseas Banks usually lendthe Importer (Buyer) based on the Letter of comfort (a Bank Guarantee) issued by the Importers(Buyer's) Bank. In fact the Importers Bank brokers between the Importer and the Overseas lenderfor arranging buyers credit by issuing its Letter of Comfort for a fee.

Buyers credit helps local importers access to cheaper foreign funds close to LIBOR rates as

against local sources of funding which are costly compared to LIBOR rates.

Buyers credit can be availed for 1 year in case the Import is for trade-able goods and for 3 yearsif the Import is for Capital Goods. Every six months the interest on Buyers credit may get reset.

[edit] Steps involved in buyer's credit

External Commercial Borrowing with one of the banks abroad with whom the Bank has tie up.For this, the Bank will provide an undertaking to make payment on the new due date.

It gives additional time to the importer to make the final payment to the L/C issuing bank.it is

buyer's guarantee against the goods imported by him. The quote given by Financial institution isknown as buyers credit quote.

Buyer Credit is a credit facility provided by an Indian Bank or Lending Institution to the

overseas buyer (Importer) to purchase Goods or Machinery from Indian Exporter. Buyer

Credit facility is extended for a specific period of time.

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Buyer Credit facility ensures safety and security of the payment to be received by the

Indian exporter and the buyer or importer can have an agreement with the Indian bank or

lending institution to settle the credit within a stipulated period of time at mutually agreed

rate of interest and other terms. 

Participants in LC Process 

  Buyer   Issuing Bank   Advising Bank   Seller (Beneficiary) 

9 Steps in the Letter of Credit Process 

I.  Buyer and seller agree to terms including means of transport, period of credit offered (if any),and latest date of shipment acceptable.

II.  Buyer applies to bank for issue of letter of credit. Bank will evaluate buyer's credit standing,and may require cash cover and/or reduction of other lending limits.

III.  Issuing bank issues LC, sending it to the Advising bank by airmail or electronic means such astelex or SWIFT.

IV.  Advising bank establishes authenticity of the letter of credit using signature books or testcodes, then informs seller (beneficiary).

V.  Seller should now check that LC matches commercial agreement and that all its terms andconditions can be satisfied.

VI.  Seller ships the goods, then assembles the documents called for in the LC (invoice, transportdocument, etc.).

VII.  The Advising bank checks the documents against the LC. If the documents are compliant, thebank pays the seller and forwards the documents to the Issuing bank.

VIII.  The Issuing bank now checks the documents itself. If they are in order, it reimburses theseller's bank immediately.

IX.  The Issuing bank debits the buyer and releases the documents (including transport document),

so the buyer can claim the goods from the carrier.X.  Self-financing of a supplier's operations. Also the agreement of a supplier of goods or

services to deferred repayment terms. 

XI. XII.  Supplier Credit

XIII.  An agreement between a supplier and a buyer whereby the supplier defers payment. Thatis, supplier credit occurs when the supplier accepts installment payments for the supplieshe/she sells. 

XIV. XV. 

In case of Suppliers credit, Bank of importer county provides the credit to exporter.

i am not sure about the process. In domestic transaction same kind of model is used called

vendor financing. it would be easy for me to explain it with the help of example.

Maruti Purchases goods on credit from number of suppliers on credit. Maruti can help the

suppliers in financing. Maruti can approach any bank like HDFC to finance to its suppliers. In this

case Maruti only give undertaking not guarantee in that transactions. bank Finance suppliers

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depends upon the credibility of the supplier. role of Maruti is just to give information to the

bank that i had bought goods on credit from the supplier and due date of payment.

In other ways financing. Maruti Approach bank to give credit to the dealers of Maruti. In that

case Maruti give information to the bank that i have delivered XyZ number of cars. Bank Gives

credit to the dealer depends upon the credibility of the dealer. and also open ESCROW account

and after sale of individual car some part of money is transferred to the ESCROW account and

that way Bank receives all the money.

Thanks 

XVI. 

Bill Discounting 

While discounting a bill, the Bank buys the bill (i.e. Bill of Exchange or Promissory Note)before it is due and credits the value of the bill after a discount charge to the customer'saccount. The transaction is practically an advance against the security of the bill and thediscount represents the interest on the advance from the date of purchase of the bill until it isdue for payment.

Under certain circumstances, the Bank may discount a bill of exchange instead of negotiatingthem. The amount the Bank advances to you also depends on your past record and reputation of the drawee.

Usually, the Bank may want some conditions to be fulfilled to be able to discount a bill:

  A bill must be a usance bill  It must have been accepted and bear at least two good signatures (e.g. of reputable

individuals, companies or banks etc.)  The Bank will normally only discount trade bills  Where a usance bill is drawn at a fixed period after sight, the bill must be accepted to

establish the maturity

The advising or confirming bank will hide the reimbursement instruction from the beneficiary sothat his bank must present the documents to the nominated bank for negotiation in order to obtain

payment under the DC terms.

Bills which are financed by the receiving branch, whether drawn under a DC or not, are treatedas Bills Receivable by both the remitting branch and the receiving branches.

Presenting a bill 

Bills may be presented to the nominated bank in two ways:

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1.  With recourse

We check the documents and confirm that they comply with the DC terms, and send thebill with the original DC to the nominated bank requesting payment. The nominated bank need not recheck the documents and it can claim a refund from us in the case of anunspotted discrepancy. We pay our customer after receipt of funds from the nominated

bank.2.  Without recourse

We pass the original DC and unchecked documents to the nominated bank on a collectionbasis, requesting payment. The nominated bank has to check the documents in the normalway. Usually, we present documents to the nominated bank without recourse:

a. When the opening bank is a member of the Bank nominated for payment, acceptance ornegotiation

b.When the nominated bank has confirmed the DC

c.When the nominated bank is the drawee

If you have a good standing, we can give you an advance against an OBN bill. You will thenhave to repay the advance from the proceeds of the bill.

Finance Against Collection 

You as an exporter may ask the Bank for finance against a collection bill. Now, if your buyerwill close the sale only if he gets credit, you may involve the Bank to arrange for the same.This will allow you to be flexible in the payment terms.

The remitting bank may finance a good creditworthy exporter by purchasing or discounting hiscollection bills under an "Export Line". However,

  If the importer refuses a bill the Bank has purchased, the Bank must be sure of being ableto get a refund.

  The importer must be reliable. The Bank usually tries to avoid the risk of refusal bykeeping in touch with large banks.

  The Bank always ensures that when a bill is purchased, it is drawn on approved draweeswithin limits.

  Factoring is a financial transaction whereby a business job sells its accounts receivable (i.e., invoices) to a third party (called a factor) at a discount in exchange for immediatemoney with which to finance continued business. Factoring differs from a bank loan inthree main ways. First, the emphasis is on the value of the receivables (essentially afinancial asset),[1][2] not the firm’s credit worthiness. Secondly, factoring is not a loan  – itis the purchase of a financial asset (the receivable). Finally, a bank loan involves twoparties whereas factoring involves three.

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  It is different from forfaiting only in the sense that forfaiting is a transaction-basedoperation involving exporters in which the firm sells one of its transactions,[3] whilefactoring is a Financial Transaction that involves the Sale of any portion of the firm'sReceivables.[2][1] 

  Factoring is a word often misused synonymously with invoice discounting[citation needed ] -

factoring is the sale of receivables, whereas invoice discounting is borrowing where thereceivable is used as collateral.[4]   The three parties directly involved are: the one who sells the receivable, the debtor, and

the factor. The receivable is essentially a financial asset associated with the debtor'sliability to pay money owed to the seller (usually for work performed or goods sold). Theseller then sells one or more of its invoices (the receivables) at a discount to the thirdparty, the specialized financial organization (aka the factor), to obtain cash. The sale of the receivables essentially transfers ownership of the receivables to the factor, indicatingthe factor obtains all of the rights and risks associated with the receivables.[2][1] Accordingly, the factor obtains the right to receive the payments made by the debtor forthe invoice amount and must bear the loss if the debtor does not pay the invoice amount.

Usually, the account debtor is notified of the sale of the receivable, and the factor bills thedebtor and makes all collections. Critical to the factoring transaction, the seller shouldnever collect the payments made by the account debtor, otherwise the seller couldpotentially risk further advances from the factor. There are three principal parts to thefactoring transaction; a.) the advance, a percentage of the invoice face value that is paidto the seller upon submission, b.) the reserve, the remainder of the total invoice amountheld until the payment by the account debtor is made and c.) the fee, the cost associatedwith the transaction which is deducted from the reserve prior to it being paid back theseller. Sometimes the factor charges the seller a service charge, as well as interest basedon how long the factor must wait to receive payments from the debtor. [5] The factor alsoestimates the amount that may not be collected due to non-payment, and makesaccommodation for this when determining the amount that will be given to the seller. Thefactor's overall profit is the difference between the price it paid for the invoice and themoney received from the debtor, less the amount lost due to non-payment.[2] 

  In the United States, under the Generally Accepted Accounting Principles receivables areconsidered sold when the buyer has "no recourse,"[6] or when the financial transaction issubstantially a transfer of all of the rights associated with the receivables and the seller'smonetary liability under any "recourse" provision is well established at the time of thesale.[7] Otherwise, the financial transaction is treated as a loan, with the receivables usedas collateral. 

  Apart from factoring a source of receivables, working capital financing is bill discountingarrangement offered by banks and finance companies.

  Similarities: Factoring is somewhat similar to bills discounting in the sense that boththese services provide short term finance. Again discount account receivables which theclient would have otherwise received from the buyer at the end of the credit period.

  Differences: Nonetheless, the two receivables financing arrangements differ in importantrespects.

  1. Bill discounting is always with recourse whereas factoring can be either with recourseor without recourse.2. In bill discounting the drawer undertakes the responsibility of collecting the bills and

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remitting the proceeds to the financing agency, while the factor usually undertakes tocollect the bills of the client.3. Bills discounting facility implies provision of finance and only that, but a factor alsoprovides other services like sales ledger maintenance and advisory services.4. Discounted bills may be rediscounted several times before they mature for payment.

Debts purchased for factoring cannot be rediscounted, they can only be refinanced.5. Factoring implies the provision of bulk finance against several unpaid trade generatedinvoices in batches; bill financing is individual transaction oriented i.e. each bill isseparately assessed and discounted.6. Factoring is an off balance mode of financing7. Bills discounting does to involve assignment of debt as is the case with factoring.

  Forfaiting:  Forfaiting is a form of finance of receivables pertaining to international trade. IT denotes

the purchase of trade bills/promissory notes by a bank/financial institution withoutrecourse to the seller. The purchase is in the form of discounting the documents coveringthe entire risk of nonpayment in collection. All risks and collection problems are fully the

responsibility of the purchaser (forfeiter) who pays cash to the seller after discounting thebills/notes. The salient features of forfaiting as a form of export related financing aresummarized below:

  In pursuance of a commercial contract between an exporter and importer, the exportersells and delivers the goods to the importer on deferred payment basis.

  The importer draws a series of promissory notes in favor of the exporter for paymentincluding interest charge. Alternatively the exporter draws a series of bills which areaccepted by the importer. The bills/notes are sent to the exporter. The promissory notes /  bills are guaranteed by a bank which may not necessarily be the importer’s bank. The

guarantee by the bank is referred to as an

l which is defined as an endorsement by a bank guaranteeing payment by the buyer(importer).

  The exporter enters into a forfaiting arrangements with a forfaiter which is usually areputed bank including exporter’s bank. The exporter sells the avalled notes/bills to the

bank (forfaiter) at a discount recourse. The agreement provides for the basic terms of thearrangement such as cost of forfaiting margin to cover risk, commitment charges, days of grace, fee to compensate the fortfaiter for loss of interest due to transfer and paymentdelays, period of forfaiting contract, installment of repayment, usually bi-annualinstallment, rate of interest and so on. The rate of interest/discount charged by theforfaiter depends upon the terms of the note/bill the currency in which it is denominated,the credit rating of the avalling bank, the country risk of the importer etc.

  Payment to forfaiter by the exporter of the face value of the bill/note less discount:  The forfaiter may hold these notes/bills till maturity for payment by the importer’s bank.

Alternatively, he can secure them and sell the short term paper in the secondary market ashigh yielding unsecured paper. –  

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Incoterms or International Commercial terms are a series of pre-defined commercial termspublished by the International Chamber of Commerce (ICC) widely used in internationalcommercial transactions. A series of three-letter trade terms related to common sales practices,Incoterms are intended primarily to clearly communicate the tasks, costs and risks associatedwith the transportation and delivery of goods. Incoterms are accepted by governments, legal

authorities and practitioners worldwide for the interpretation of most commonly used terms ininternational trade. They are intended to reduce or remove altogether uncertainties arising fromdifferent interpretation of such terms in different countries. First published in 1936, Incotermshave been periodically updated, with the eighth version — Incoterms 2010 — having beenpublished on January 1, 2011. What is the difference between Factoring and Forfaiting and howcan it help your import/export business?

During difficult financial times many import/export businesses are looking for new ideas toincrease their cash crunches. Import/Exporting can have astronomical rewards because you canmake a profit by getting the best benefits of two economies, a low cost production economy aswell as a high purchasing economy. Much of North America and Western Europe import a large

percentage of their goods. There are many opportunities navigating global economies; howeveralmost all of these opportunities require large amounts of short term cash for purchasing,production, and transport. Factoring and Forfaiting are two key strategies to help importers andexporters to get a start in business as well as increase short term and long term cash flow.

Factoring is when a company trade account receivables that may take 30, 60, 90, or even 120days for immediate upfront cash to pay for vendors, payroll, supplies, or other expenses.Factoring involves using a third party company who will provide cash upfront for a fee. Usuallythe third party will hold back a portion of the total invoice as surety i.e. a $100,000 invoicefactoring company may give your $60,000 to $80,000. When the accounts receivable is paid thefactoring company will return all of the funds to the exporter minus any applicable charges.Factoring companies prefer

Forfaiting is usually used for medium and long term debt (1-10 years). Similar to factoring theForfaiting company will take full responsibility for receiving the payments from the purchaser(importer) in exchange for a letter of credit, line of credit, or cash to the seller (exporter).Forfaiting may by used for only one account or several accounts. The key difference betweenforfaiting and factoring is that Forfaiting companies keep a portion of the accounts receivablewhereas a factoring company will return the balance minus their fees.

Both financial devices require a few key parts. First the person or entity buying the goods orservice must be creditworthy and pay their obligations on a timely basis. No one wants to offerfactoring or forfaiting for a client that's a dead beat. In factoring a company that pays in 90 daysversus 60 days may result in an extremely costly price for the exporter or company seeking thefactoring. Remember these are just a new strategy in an arsenal of an entrepreneur or businessbuyer. Like all strategies you need to know all the costs involved, calculate your margins, and beprepared the best strategy for your situation.

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 Forfaiting - the purchase of debt instruments (Bills of Exchange or Promissory Notes) withoutrecourse on a discount to yield basis.

Factoring - the purchase of a receivable evidenced by a commercial invoice, may be with or

without recourse to the seller.

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HSBC in India

HSBC's origins in India date back to 1853, when the Mercantile Bank of India was established inMumbai. The Bank has since, steadily grown in reach and service offerings, keeping pace withthe evolving banking and financial needs of its customers.

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  HSBC Professional Services (India) Private Limited 

  HSBC Securities and Capital Markets (India) Private Limited 

  HSBC Software Development (India) Private Limited 

  HSBC InvestDirect (India) Limited 

HSBC Group Entities in IndiaCommercial Banking

The Hongkong and Shanghai Banking Corporation Limited (HSBC)

Personal Banking HSBC offers a wide range of personal financial services, including personal lending and depositproducts, through its branch network in Ahmedabad, Bangalore, Chennai, Chandigarh,Coimbatore, Gurgaon, Hyderabad, Jaipur, Kochi, Kolkata, Ludhiana, Mumbai, New Delhi,Noida, Pune, Thane, Trivandrum and Visakhapatnam. Also offered branch-wide are international

Gold and Classic credit cards from VISA and MasterCard and debit cards from Visa. Customershave access to 24-hour banking services through an extensive network of automated tellermachines (ATMs), an integrated Call Centre, and internet banking - online@hsbc .

Non Resident Indian Banking HSBC's Non Resident Indian Banking (NRI) centres located in Asia-Pacific, the Middle East,Europe and North America, together with HSBC's offices worldwide, provide the internationalIndian Diaspora access to a range of products and services. These include NRI relatedinvestment (both international and domestic), transactional and deposit products, together with afull range of personal and private banking products in India and overseas. Internet banking alsoprovides easy access to HSBC's services.

Financial Planning Services Services include investment and custodian management and access to stock broking andinsurance services, which are offered to resident as well as non-resident Indians.

Corporate Banking HSBC has well-established, long-term corporate banking relationships with large domesticIndian corporations and foreign multinationals operating in India. Services include term andworking capital finance, trade facilities, corporate deposits, syndications, payments and cashmanagement services and factoring.

Business Banking HSBC's Extra Mile Business Banking offers two types of account to small and medium-sizedbusinesses - The Business Account and the BusinessVantage Account. Services include BusinessPhone Banking, Business Doorstep Banking and Multi Branch Business Banking.

Payments and Cash Management HSBC provides integrated domestic and regional transaction support to corporate clients througha sophisticated range of cash management solutions, including collection and payment services

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and integration with customer back-end systems. Operations and client services are ISO 9001certified. Hexagon, the HSBC Group's dedicated electronic banking service allows users toperform financial transactions, obtain international financial markets information, and reviewdetails of their domestic and international accounts, from anywhere in the world, 24 hours a day.

Trade (international and domestic) and Factoring Services A wide range of solutions tailored to meet customer's requirements for both domestic andinternational businesses is offered. HSBC is also one of the leading banks involved in the bullionbusiness through its offices in Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhiand is supported by the Group's global expertise in the precious metal business. HSBC is theleading provider of trade services in India and its trade centres are ISO 9002 certified.

Institutional Banking Working closely with Group offices in India and overseas, trade services, payments and cashmanagement, treasury and capital markets, custody and clearing, and correspondent andelectronic banking activities are offered to banks, financial institutions, securities houses,

insurance companies, asset management companies and other non-banking companies, non-government and development organisations operating in India.

Treasury and Capital Markets Clients consistently rate HSBC's Treasury business as one of the best in India. Its dealing roomin Mumbai is one of the largest in the country, serving clients in Mumbai and in the majormetropolitan centres across the country. It provides a comprehensive range of products whichinclude - foreign exchange, money market and fixed income products and derivatives in bothrupees and major currencies.

Custody and Clearing The leading custodian in Asia, HSBC's custody and clearing services are available in 28 marketsin Asia-Pacific and the Middle East. With experienced staff and the latest technology, HSBC isthe premier provider of sub-custodian and clearing services to foreign institutional investors(FIIs) in India. HSBC clients include the domestic fund management sector in both the retail andinstitutional segments. Institutional Fund Services launched by the bank offers a comprehensivesuite of products to domestic mutual funds and insurance companies ranging from custody, fundadministration services, unit distribution and Cash Management Services.

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Technology

The HSBC Group develops and applies advanced technology to the efficient and convenientdelivery of banking and related financial services. In India, the Group provides:

  Self-Service Banking with over 150 in-branch and off-branch ATMs and 24-hour Phone Banking.

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  Trade and Corporate Banking services with real-time access to a centralised information

database

  Instantaneous inter-city transactions through online connections between all branches

  A state-of-the-art treasury dealing system

  A sophisticated card system supporting debit and credit cards, domestic and international VISA,

MasterCard, and co-branded cards

  A dedicated acquiring system for both MasterCard and Visa transactions

  online@hsbc, HSBC's internet banking service, provides customers with an integrated and

secure platform to access their accounts.

  Internet Payment Gateway handles credit card transactions on the internet

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 Asset Management 

HSBC Asset Management (India) Private Limited provides a comprehensive range of investment management solutions to a diverse client base and is committed for aiming to deliverconsistent investment performance, world-class service and a broad range of solutions for alltypes of investors. Our range of offerings in India comes under two broad categories Mutual

Fund and Portfolio Management Services. Visit www.assetmanagement.hsbc.com/in for moreinfo.

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HSBC Global Resourcing

HSBC Global Resourcing is the largest, captive, banking and financial services off shoringorganization in the world. A vital part of the HSBC Group's global strategy, Global Resourcingplays a key role in delivering shareholder value and seamlessly integrates and helps the Groupremain competitive in the ever changing world of banking and finance. Global Resourcing ispresent in India as HSBC Electronic Data Processing India Pvt. Ltd., and operates out of 7Group Service Centres (GSC) in Hyderabad, Bangalore, Kolkata, and Vishakhapatnam. Visitwww.hsbcglobalresourcing.com for more info.

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Insurance

HSBC Insurance Brokers (India) Private Limited is licensed by the Insurance RegulatoryDevelopment Authority (IRDA) to operate as a composite insurance broking company, whichwill function as a direct and a reinsurance broker.

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Data Processing

HSBC Operations and Processing Enterprise (India) Private Limited, through two centres inMumbai and Chennai, provides operational processing services for HSBC offices in India.

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HSBC Group Entities in India

Private Equity

HSBC Private Equity Management (Mauritius) Limited a subsidiary of HSBC Private Equity(Asia) Limited in Hong Kong, has a Liaison Office in Mumbai. The company specialises in theprovision of equity capital to unlisted growth companies in India and Sri Lanka.

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 Audit Service

HSBC Professional Services (India) Private Limited provides internal audit services to theHSBC Group's internal audit units worldwide, with particular emphasis on the IT, Treasury,Asset Management, Private Banking and Insurance functions.

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Investment Banking

HSBC Securities and Capital Markets (India) Private Limited has two main business lines.Its Institutional and proprietary broking business is based in Mumbai and, has seats on two of India's premier stock exchanges, the Bombay Stock Exchange and the National Stock Exchange.It deals in Indian securities for both Indian and international institutions and for select retail

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clients and is backed by an extensive research team. The Corporate Finance and Advisorybusiness, with offices in Mumbai and New Delhi, offers a full range of integrated investmentbanking services in India and internationally.

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Software Development 

HSBC Software Development (India) Private Limited has established a software centre inPune to develop solutions for HSBC's Group offices worldwide.

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HSBC InvestDirect (India) Limited

HSBC InvestDirect (India) Limited (HIDL) with its headquarters in Mumbai, has a pan-Indiapresence and through its subsidiaries, offers a range of products & web based services thatinclude Stock Broking Services, Investment Advisory, Distribution of Financial products andSecurities related financing (NBFC), to individuals and corporates. For more information, visitwww.hsbcinvestdirect.co.in. 

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  The Hongkong and Shanghai Banking Corporation Limited (HSBC)   HSBC Asset Management (India) Private Limited 

  HSBC Global Resourcing / HSBC Electronic Data Processing (India) Private Limited 

  HSBC Insurance Brokers (India) Private Limited 

  HSBC Operations and Processing Enterprise (India) Private Limited 

  HSBC Private Equity Management (Mauritius) Limited 

  HSBC Professional Services (India) Private Limited 

  HSBC Securities and Capital Markets (India) Private Limited 

  HSBC Software Development (India) Private Limited 

  HSBC InvestDirect (India) Limited 

HSBC Group Entities in IndiaCommercial Banking

The Hongkong and Shanghai Banking Corporation Limited (HSBC)

Personal Banking HSBC offers a wide range of personal financial services, including personal lending and deposit

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products, through its branch network in Ahmedabad, Bangalore, Chennai, Chandigarh,Coimbatore, Gurgaon, Hyderabad, Jaipur, Kochi, Kolkata, Ludhiana, Mumbai, New Delhi,Noida, Pune, Thane, Trivandrum and Visakhapatnam. Also offered branch-wide are internationalGold and Classic credit cards from VISA and MasterCard and debit cards from Visa. Customershave access to 24-hour banking services through an extensive network of automated teller

machines (ATMs), an integrated Call Centre, and internet banking - online@hsbc .

Non Resident Indian Banking HSBC's Non Resident Indian Banking (NRI) centers located in Asia-Pacific, the Middle East,Europe and North America, together with HSBC's offices worldwide, provide the internationalIndian Diaspora access to a range of products and services. These include NRI relatedinvestment (both international and domestic), transactional and deposit products, together with afull range of personal and private banking products in India and overseas. Internet banking alsoprovides easy access to HSBC's services.

Financial Planning Services 

Services include investment and custodian management and access to stock broking andinsurance services, which are offered to resident as well as non-resident Indians.

Corporate Banking HSBC has well-established, long-term corporate banking relationships with large domesticIndian corporations and foreign multinationals operating in India. Services include term andworking capital finance, trade facilities, corporate deposits, syndications, payments and cashmanagement services and factoring.

Business Banking HSBC's Extra Mile Business Banking offers two types of account to small and medium-sizedbusinesses - The Business Account and the Business Vantage Account. Services includeBusiness Phone Banking, Business Doorstep Banking and Multi Branch Business Banking.

Payments and Cash Management HSBC provides integrated domestic and regional transaction support to corporate clients througha sophisticated range of cash management solutions, including collection and payment servicesand integration with customer back-end systems. Operations and client services are ISO 9001certified. Hexagon, the HSBC Group's dedicated electronic banking service allows users toperform financial transactions, obtain international financial markets information, and reviewdetails of their domestic and international accounts, from anywhere in the world, 24 hours a day.

Trade (international and domestic) and Factoring Services A wide range of solutions tailored to meet customer's requirements for both domestic andinternational businesses is offered. HSBC is also one of the leading banks involved in the bullionbusiness through its offices in Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, New Delhiand is supported by the Group's global expertise in the precious metal business. HSBC is theleading provider of trade services in India and its trade centers are ISO 9002 certified.

Institutional Banking 

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Working closely with Group offices in India and overseas, trade services, payments and cashmanagement, treasury and capital markets, custody and clearing, and correspondent andelectronic banking activities are offered to banks, financial institutions, securities houses,insurance companies, asset management companies and other non-banking companies, non-government and development organizations operating in India.

Treasury and Capital Markets Clients consistently rate HSBC's Treasury business as one of the best in India. Its dealing roomin Mumbai is one of the largest in the country, serving clients in Mumbai and in the majormetropolitan centers across the country. It provides a comprehensive range of products whichinclude - foreign exchange, money market and fixed income products and derivatives in bothrupees and major currencies.

Custody and Clearing The leading custodian in Asia, HSBC's custody and clearing services are available in 28 marketsin Asia-Pacific and the Middle East. With experienced staff and the latest technology, HSBC is

the premier provider of sub-custodian and clearing services to foreign institutional investors(FIIs) in India. HSBC clients include the domestic fund management sector in both the retail andinstitutional segments. Institutional Fund Services launched by the bank offers a comprehensivesuite of products to domestic mutual funds and insurance companies ranging from custody, fundadministration services, unit distribution and Cash Management Services.

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Technology

The HSBC Group develops and applies advanced technology to the efficient and convenientdelivery of banking and related financial services. In India, the Group provides:

  Self-Service Banking with over 150 in-branch and off-branch ATMs and 24-hour Phone Banking.

  Trade and Corporate Banking services with real-time access to a centralized information

database

  Instantaneous inter-city transactions through online connections between all branches

  A state-of-the-art treasury dealing system

  A sophisticated card system supporting debit and credit cards, domestic and international VISA,

MasterCard, and co-branded cards

  A dedicated acquiring system for both MasterCard and Visa transactions

  online@hsbc, HSBC's internet banking service, provides customers with an integrated and

secure platform to access their accounts.

  Internet Payment Gateway handles credit card transactions on the internet

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 Asset Management 

HSBC Asset Management (India) Private Limited provides a comprehensive range of investment management solutions to a diverse client base and is committed for aiming to deliverconsistent investment performance, world-class service and a broad range of solutions for all

types of investors. Our range of offerings in India comes under two broad categories MutualFund and Portfolio Management Services. Visit www.assetmanagement.hsbc.com/in for moreinfo.

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HSBC Global Resourcing

HSBC Global Resourcing is the largest, captive, banking and financial services off shoring

organization in the world. A vital part of the HSBC Group's global strategy, Global Resourcingplays a key role in delivering shareholder value and seamlessly integrates and helps the Groupremain competitive in the ever changing world of banking and finance. Global Resourcing ispresent in India as HSBC Electronic Data Processing India Pvt. Ltd., and operates out of 7Group Service Centers (GSC) in Hyderabad, Bangalore, Kolkata, and Vishakhapatnam. Visitwww.hsbcglobalresourcing.com for more info.

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Insurance

HSBC Insurance Brokers (India) Private Limited is licensed by the Insurance RegulatoryDevelopment Authority (IRDA) to operate as a composite insurance broking company, whichwill function as a direct and a reinsurance broker.

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Data Processing

HSBC Operations and Processing Enterprise (India) Private Limited, through two centers inMumbai and Chennai, provides operational processing services for HSBC offices in India.

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HSBC Group Entities in India

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Private Equity

HSBC Private Equity Management (Mauritius) Limited a subsidiary of HSBC Private Equity(Asia) Limited in Hong Kong, has a Liaison Office in Mumbai. The company specializes in theprovision of equity capital to unlisted growth companies in India and Sri Lanka.

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 Audit Service

HSBC Professional Services (India) Private Limited provides internal audit services to theHSBC Group's internal audit units worldwide, with particular emphasis on the IT, Treasury,Asset Management, Private Banking and Insurance functions.

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Investment Banking

HSBC Securities and Capital Markets (India) Private Limited has two main business lines.Its Institutional and proprietary broking business is based in Mumbai and, has seats on two of India's premier stock exchanges, the Bombay Stock Exchange and the National Stock Exchange.It deals in Indian securities for both Indian and international institutions and for select retailclients and is backed by an extensive research team. The Corporate Finance and Advisory

business, with offices in Mumbai and New Delhi, offers a full range of integrated investmentbanking services in India and internationally.

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Software Development 

HSBC Software Development (India) Private Limited has established a software centre inPune to develop solutions for HSBC's Group offices worldwide.

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HSBC InvestDirect (India) Limited

HSBC InvestDirect (India) Limited (HIDL) with its headquarters in Mumbai, has a pan-Indiapresence and through its subsidiaries, offers a range of products & web based services thatinclude Stock Broking Services, Investment Advisory, Distribution of Financial products and

Securities related financing (NBFC), to individuals and corporates. For more information, visitwww.hsbcinvestdirect.co.in. 

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HSBC Holdings plc (Chinese: 滙豐控股有限公司) is a global banking and financial services 

company headquartered in Canary Wharf , London, United Kingdom.[3] As of 2010 it was theworld's sixth-largest banking and financial services group and eighth-largest company accordingto a composite measure by Forbes magazine.[6][7] It has around 7,500 offices in 87 countries andterritories across Africa, Asia, Europe, North America and South America and around100 million customers.[4][8] As of 30 June 2010 it had total assets of $2.418 trillion, of which

roughly half were in Europe, a quarter in the Americas and a quarter in Asia.[5] 

HSBC Holdings plc was founded in London in 1991 by The Hongkong and Shanghai BankingCorporation to act as a new group holding company and to enable the acquisition of UK-basedMidland Bank .[1] The origins of the bank lie in Hong Kong and Shanghai, where branches werefirst opened in 1865.[2] Today HSBC remains the largest bank in Hong Kong, and recentexpansion in mainland China, where it is now the largest international bank, has returned it tothat part of its roots.[8][9] 

HSBC is a universal bank  and is organised within four business groups: Commercial Banking;Global Banking and Markets (investment banking); Personal Financial Services (retail banking);

and Private Banking.[10] 

HSBC's primary listing is on the London Stock Exchange and it is a constituent of the FTSE 100Index. It has secondary listings on the Hong Kong Stock Exchange (where it is a constituent of the Hang Seng Index), the New York Stock Exchange, Euronext Paris and the Bermuda Stock Exchange. As of August 2010, it was the largest company listed on the London Stock Exchange, with a market capitalisation of £115.8 billion.[11