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  • BCIP Application: Mode of Investment Ocbc Deposit Account Ocbc Online Banking Ocbc SRS Account

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    This document provides frequently asked questions about the Blue Chip Investment Plan (BCIP) offered by OCBC Bank. The BCIP allows customers to invest a fixed monthly amount to purchase shares of 19 blue-chip Singapore companies. Key details include that customers can invest through cash or their SRS account, shares are purchased on the 22nd of each month, dividends are credited to the customer's designated account, and customers can sell their shares but are encouraged to accumulate to full lot sizes for better pricing. Custody of shares is handled by OCBC Securities or OCBC Nominees depending on the investment mode, and customers can transfer shares to other accounts after meeting certain requirements.

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    This document provides frequently asked questions about the Blue Chip Investment Plan (BCIP) offered by OCBC Bank. The BCIP allows customers to invest a fixed monthly amount to purchase shares of 19 blue-chip Singapore companies. Key details include that customers can invest through cash or their SRS account, shares are purchased on the 22nd of each month, dividends are credited to the customer's designated account, and customers can sell their shares but are encouraged to accumulate to full lot sizes for better pricing. Custody of shares is handled by OCBC Securities or OCBC Nominees depending on the investment mode, and customers can transfer shares to other accounts after meeting certain requirements.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    40 views6 pages

    BCIP Application: Mode of Investment Ocbc Deposit Account Ocbc Online Banking Ocbc SRS Account

    Uploaded by

    mugger123456
    This document provides frequently asked questions about the Blue Chip Investment Plan (BCIP) offered by OCBC Bank. The BCIP allows customers to invest a fixed monthly amount to purchase shares of 19 blue-chip Singapore companies. Key details include that customers can invest through cash or their SRS account, shares are purchased on the 22nd of each month, dividends are credited to the customer's designated account, and customers can sell their shares but are encouraged to accumulate to full lot sizes for better pricing. Custody of shares is handled by OCBC Securities or OCBC Nominees depending on the investment mode, and customers can transfer shares to other accounts after meeting certain requirements.

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    © All Rights Reserved
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    of 6

    Frequently Asked Questions on Blue Chip Investment Plan (BCIP)

    BCIP Application
    1. What do I need to start a BCIP account?
    You can invest BCIP using Cash or SRS. You do not need to open any securities trading account or
    Central Depository (Pte) Ltd (CDP) account to start a BCIP account.
    Mode of investment

    OCBC
    deposit account

    OCBC
    Online Banking

    Cash

    SRS
    (only applicable for
    Single Account)

    OCBC
    SRS account

    If you do not have an OCBC SRS investment account, you may open one online through OCBC
    Online Banking.
    If you do not have an OCBC deposit account or OCBC Online Banking, the BCIP application form
    allows you to apply for the two accounts at the same time. Download the application form on
    www.ocbc.com/bluechip, complete and mail it in.
    2. How long does it take for my BCIP account to be opened? How do I know if it is successful?
    You will receive an SMS on whether your BCIP account has been successfully opened seven
    business days after we receive your BCIP application form. This notification will be sent to the
    contact number as per your mobile phone records with the Bank.
    If your account opening is unsuccessful, we will notify you through SMS.
    3. Can I use a joint account as my settlement account?
    Yes, you can choose a joint OCBC deposit account for debiting and crediting in relation to your
    BCIP account. However, any joint account that requires two or more signatures is not allowed
    for use as a settlement account.
    4. If I apply today, when does my plan start? Is there a cutoff time for submission?
    Action

    Effective by

    Your application for BCIP is made anytime


    between the 1st and 12pm on the last
    business day of the month.

    We will execute your order on 22nd of the next


    month following your application submission.

    Your application received after 12pm on


    the last business day of the month.

    We will execute your order on 22nd of the 2nd


    month following your application submission.

    Updated on 16 August 2016


    Co.Reg.No.: 193200032W

    BCIP Joint Account with Minor


    5. Who is eligible to apply for a BCIP joint account with minor?
    Only one adult (parent / legal guardian) and one child (below 18 years old) may apply to be joint
    account holders for each BCIP joint account with minor.
    6. Who can give instructions to sell or make amendments to the BCIP joint account with minor
    account?
    When the child is below 18, only the parent / legal guardian will be allowed to give instructions
    to sell or make amendments.
    Once the child turns 18, the child will have equal rights as the parent / legal guardian and
    allowed to give instructions to sell or make amendments to the BCIP joint account.
    BCIP Mechanics - General
    7. How is the list of 19 counters selected?
    The 19 counters comprise of 18 blue chip share counters and one Exchange Traded Fund (ETF).
    The share counters are shortlisted from the 30 companies which make up the Straits Times
    Index (STI), on the mainboard of the Singapore Exchange, and are traded on the Singapore stock
    exchange. The Nikko AM STI ETF is an ETF which is an Excluded Investment Product (EIP) with
    sufficient liquidity.
    8. Will these share counters be reviewed? Will new counters be added and existing counters be
    removed in future?
    The constituents of the Straits Times Index (STI) are reviewed every half-yearly by FTSE Group
    (FTSE). Index reviews take place semi-annually in March and September. The list of share
    counters available for purchase under BCIP will only be changed if companies are added to, or
    removed from the STI based on the index reviews, and not based on performance.
    9. Am I entitled to dividends under BCIP?
    Yes, you will be entitled to dividends, whenever declared by the respective company or ETF.
    10. How are dividends paid out?
    If you use cash as your settlement mode:
    Cash dividends will be credited to your designated OCBC deposit account you had used to
    purchase your existing share holdings. Stock dividend or bonus issues will be safe-kept with
    OCBC Securities Pte. Ltd, as appointed by OCBC Bank.
    If you use SRS as your settlement mode:
    Cash dividends will be credited to your designated OCBC SRS account. Stock dividend or bonus
    issues will be kept in an account in the name of OCBC Nominees Singapore Private Limited.

    Updated on 16 August 2016


    Co.Reg.No.: 193200032W

    BCIP Mechanics Purchase and Sale


    11. How is the Average Purchase Price of the share determined?
    On the Purchase Date, we aggregate the orders of all customers to purchase the shares. The
    Average Price is calculated by dividing the total cost of purchasing the shares by the total
    quantity of shares purchased. All customers who purchase the same share counter will be
    charged the same average purchase price.
    12. How is the quantity of shares I am allocated determined?
    The quantity of shares you are allocated is calculated by taking the investment amount you have
    indicated (less fees), divided by the average purchase price. The quantity will be rounded down
    to the nearest whole number.
    If you use cash as your settlement mode:
    We will credit the unutilised portion of the Gross Investment Amount after excluding the fees
    (i.e. the residual monies which was not utilised to purchase Securities) back to your GIRO-linked
    account.
    If you use SRS as your settlement mode:
    We will only debit an amount equivalent to the gross investment amount plus fees for the
    Securities actually purchased from the Customers SRS account.
    13. How is the Average Sale Price of the share determined?
    On the Sale Date, we aggregate the orders of all customers who wish to sell the shares. The
    Average Sale Price is calculated by dividing the total proceeds from the shares sold by the total
    quantity of shares sold. All customers who sold the same share counter will be credited with
    proceeds using the same average sale price.
    14. Do I need to wait and accumulate a full lot size of 1,000 shares before I can sell off my shares
    accumulated under the BCIP?
    No, you dont have to. With the BCIP, you have the flexibility of selling off odd lots of shares on
    the unit share market. You may sell any quantity of shares which are accumulated through the
    BCIP.
    However, you should consider accumulating your shareholdings to a full lot size before selling
    them, instead of timing the market. This is because when you sell off odd quantity of shares that
    are not in standard lot sizes, you may not get a price that is as competitive as a full lot size due
    to lack of liquidity. Also, the fees applicable to sell orders are on a per transaction basis, so it
    may make sense to accumulate your shareholdings to a reasonable size before selling.
    15. What is a buy-in and why does it happen?
    When you sell more shares than you own (known as a "short-sell"), SGX may conduct a "buy-in"
    to ensure that the quantity that was short-sold is covered. When a buy-in occurs, you will be
    liable for any losses and charges in relation to the buy-in.

    Updated on 16 August 2016


    Co.Reg.No.: 193200032W

    BCIP Payment
    16. When will my funds be deducted from my account?
    If you are investing using your OCBC deposit account, GIRO deduction occurs on the 17th of
    every month. If it happens to be on a non-business day, the deduction will be carried out on the
    preceding business day. You will have to ensure sufficient funds in your account two business
    days before the GIRO deduction date.
    If you are investing using your OCBC SRS account, deduction of funds occurs three business days
    from the purchase execution date.
    17. Why do I need to ensure that there are sufficient funds in my account two business days
    before the GIRO deduction date?
    Ensuring sufficient funds in your account before the actual GIRO deduction date facilitates the
    successful GIRO deduction for your monthly purchase. If your account is not funded in time, it
    may lead to an unsuccessful deduction, and your purchase instruction for the particular
    securities will be terminated upon three such consecutive unsuccessful payments.
    BCIP Custody of Shares
    18. Do I need to open a securities trading account or Central Depository (CDP) account to safe
    keep my shares?
    You do not need to open a securities trading account or CDP account.
    If you are investing using cash, OCBC Bank has appointed OCBC Securities Pte. Ltd to safe keep
    your shares purchased under the BCIP.
    If you are investing using SRS, your shareholdings will be kept in an account in the name of OCBC
    Nominees Singapore Private Limited.
    19. Can I use my existing CDP Account to safe keep my shares?
    No, you will not be able to use your existing CDP account as a custody option under the BCIP.
    Under the BCIP, you will be able to view your shareholdings through OCBC Online Banking as
    part of your overall portfolio.
    BCIP Transfer of Shares
    20. Can I transfer my shares to CDP / other financial institutions?
    For shares settled by cash, you may transfer your shares to a CDP account or an account with
    other Financial Institutions.
    For shares settled by SRS, you will not be able to transfer out your shares.
    21. How do I transfer my shares out?
    You can visit any OCBC Bank branch with the required supporting documents to obtain,
    complete and submit the transfer form.

    Updated on 16 August 2016


    Co.Reg.No.: 193200032W

    22. What are the supporting documents required for the transfer out?
    Please see the table below for details and refer to www.ocbc.com/bluechip for the relevant
    charges:
    Transfer out to
    An account in your name or where you
    are one of the joint account holders
    An account not in your name, but in the
    name of an immediate family member
    An account not in your name, and not
    belonging to an immediate family
    member

    Supporting documents required


    Copy of your NRIC / Passport
    Copy of your NRIC / Passport; and
    Copies of certificates establishing your
    relationship with immediate family member
    (e.g. birth certificate, marriage certificate etc)
    Copy of your NRIC or passport; and
    Sale & Purchase agreement endorsed by a
    lawyer

    View BCIP Shareholdings


    23. How do I check how many shares I have accumulated under the BCIP?
    You can view your shareholdings by logging on to OCBC Online Banking. The shareholdings will
    be updated four business days after the purchase or sale date.
    24. How do you determine the market value of the shares shown in OCBC Online Banking?
    OCBC Online Banking shows an approximate value of your shareholdings under BCIP, based on
    the last done price two business days before.
    Voting Rights & Annual Reports
    25. Do I have the same voting rights as normal shareholders?
    Under the BCIP, your voting rights entitlement will be waived.
    26. Will I receive annual reports of the company like a normal shareholder?
    Annual reports will not be sent directly to you by the company which you hold shares of. You
    may visit the relevant companys webpage to obtain the annual report.
    Other Enquiries
    27. I have just submitted my BCIP application but changed my mind. How do I cancel my
    application?
    You may submit an instruction to us through OCBC Online Banking. Go to the Blue Chip
    Investment Plan page, select Amend your plan, and choose Stop monthly investments / Cancel
    my BCIP application in Section 2c.
    Submit your instruction to cancel your BCIP application before 12pm on the 10th of the month,
    and we will revoke your BCIP application in the same month if your plan is not yet effective.

    Updated on 16 August 2016


    Co.Reg.No.: 193200032W

    28. I have an existing BCIP account. Can I amend my existing plan, and when will the changes be
    effective?
    Action
    To amend
    (selection of counters,
    monthly investment
    amount, or settlement
    account used for debiting
    and crediting in relation to
    BCIP)

    Inform us by

    Effective by

    Before 12pm on the last business


    day of each month

    The following month

    To sell

    By 2.30pm on any business day

    The next business day. You


    will receive your funds three
    business days from the date
    of execution.

    To stop monthly
    investment

    Before 12pm on 10th of each


    month

    The current month

    The above effective timelines apply to successful BCIP applications approved by OCBC Bank.

    29. How do I close my BCIP account?


    You will need to provide us with a written instruction to close your BCIP account at any of our
    OCBC Bank branches.
    30. Who can assist me if I have further enquiries regarding BCIP?
    Please visit our website www.ocbc.com/bluechip for details on the plan. If you have further
    enquiries regarding the BCIP features or application process, you may call our hotline at 1800
    363 3333.

    Updated on 16 August 2016


    Co.Reg.No.: 193200032W

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