Religare Securities Franchise is enlisted among the largest franchises in India. Religare Group is the parent company of Religare Securities which initiated its broking business back in the year 1994. and moved into franchising in 2004 with its headquarters located in New Delhi.
Today, there are more than 1500 outlets of Religare Securities Franchise with a huge customer base. It is spread across 500 different locations within India. According to the records of the National Stock Exchange, the active client base of the Religare Securities is 1,43,717.
Religare Securities wasn’t acquired by Edelweiss broking though such news was prevailing for a certain period in recent times.
Another important thing about this stockbroking house is that it is a member of various eminent stock exchanges in India such as BSE, NSE, MCX-SX & USE.
Religare Securities Franchise is a depository participant which provides its partners and clients with a number of financial products for trading and making an investment such as currency, derivatives, equity, mutual funds, commodity, NCDs and IPOs.
Some of its services include managing the risk, regional marketing, onboarding the partners and servicing them, etc. It is known for efficiently handling various processes so that there are no discrepancies while carrying out the daily operations.
Religare Securities Partnership models:
Religare Securities offers two partnership models, which are explained below:
Religare Securities Sub-broker or Associate Partner:
This model is quite popular owing to the well-established brand name of the firm. It has a very good network and has its revenue sharing at par with the competitors in the stockbroking industry.
A basic understanding of the stock market and investment is needed to be a part of this business model. If you are looking for a business in the stock market industry at a primary earning level, this is one of those models you can look forward to.
At the same time, if you are looking for a stockbroking partnership at a passive level, then this is DEFINITELY NOT the model you should be considering since it requires time, effort and of course costing.
It is a simple partnership model in which a Remisier needs to refer his friends, family members or anyone interested in their social network to join the firm for their investment needs. After this, all other processes are carried out by the firm.
It has the cost and revenue sharing ratios like that of the other players in the market. Although, these revenue sharing numbers are nowhere close to the numbers in sub-brokership or franchise business models.
Religare Securities Franchise Costing:
If we compare this full-service stockbroker with the other stockbroking houses in the market, it can be said that Religare Securities Franchise’s costs, as well as the initial deposits, are relatively on the higher side owing to its popularity and brand name.
It is essential to understand all the charges which you need to pay for becoming a partner of Religare Securities Franchise so that you won’t feel as if there were some hidden charges when you will have to actually pay something after the partnership.
You will be asked to pay an upfront amount of ₹3 Lakh to ₹4 Lakh, an annual brand fees of ₹3000 to ₹6000 along with terminal rental charges every month to the broker.
The upfront charges are even higher, about ₹5 Lakh to ₹8 Lakh in case of a Master Franchise. According to the broker, in the initial year of business operations, breakeven will occur.
For more information, check this detailed review on Sub-broker Fees.
Besides the above costs, you will need to pay a generic charge for the exchange membership, amounting to ₹2360 for each segment.
A Remisier has to pay a security deposit of ₹10,000-₹20,000 which is refundable in nature. You will get this back when you wish to quit the firm i.e. it is refundable in nature. Along with this, a one-time non-refundable charge of ₹1500 is needed per segment is to be incurred as well.
Religare Securities Franchise Revenue sharing:
The revenue sharing varies from 40% to 70% in Religare Securities Franchise.
You will be entitled to 70% of the overall brokerage generated in one month if the ratio which was agreed on was 70:30. For example, if the net brokerage in this month amounts to ₹5 Lakh and the agreed ratio is 70:30, then you will get ₹3.5 lakhs and Religare Securities will own the remaining ₹1.5 Lakh.
The amount of revenue sharing depends on different factors such as the amount you have deposited, the projected revenue and the actual generated revenue, the amount you have invested, the products you were dealing with etc.
In a Remisier model of Religare Securities, 20-30% of revenue is generated because there are very simple functions which a Remisier has to do i.e just refer people of his social circle to join Religare Securities’ network.
So, the essential point to be noted at this point is your skill to negotiate the revenue sharing ratio. The better you are able to negotiate the ratio with the stockbroker’s executive before entering into a partnership, the more profitable you can be.
Since any discussion on this matter is generally avoided, it becomes important for you to initiate it and get things on your part.
Religare Securities Franchise Benefits:
There are numerous benefits which one can get on partnering with Religare Securities. These are enumerated in the following section:
A Good brand name:
Since Religare Securities Franchise is an old player in the stockbroking market, it has created a very good impression in the minds of people. This factor makes acquiring clients much easier for you. You can completely focus on other aspects of your business instead of trying to convince people to trust its services.
The USP of Religare Securities Franchise is that it consistently supports you by providing you with detailed research reports as well as tips for trading related to the technical as well as fundamental aspects.
Variety of investment products:
With this stockbroker, you can get a number of financial products for trading and investment. You can make these available to your clients too.
Support in various aspects:
Religare Securities Franchise provides you support in different fields such as research, operations, marketing etc.
It trains its partners to keep them updated with the latest trends, tools and techniques of the stockbroking industry so that they can stand out in the crowd of strong contenders.
Assistance from dedicated relationship managers
The RMs help you while you are establishing your office, by helping you to brand it, train the employees who will be working with it and other such processes.
Availability of exclusive portals for a business partner:
This helps the partners to track a lot of essential aspect of the business such as the leads, revenue generated, clients and other entities associated with the business.
An appraisal based on performance:
If you perform well, Religare Securities will recognise your performance and reward you.
This is a highly motivating factor for its business partners because of which they remain loyal to it instead of switching over to other stockbroking houses.
Religare Securities Franchise Drawbacks:
This stockbroker has only one drawback and that is, it has high initial charges compared to the other players in the market.
This may be backfiring the broker by placing a virtual entry barrier in the stockbroking space for the interested parties in Religare Securities. The only reason advocating towards this high cost is that the broker is looking towards quality partnerships and not at the volume level.
Religare Securities Franchise Eligibility criteria:
In order to join this stock broking house, you need to fulfil certain basic criteria. These are enumerated below:
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- You should be at least 18 years old.
- A minimum educational qualification of the 10th pass is essential from a recognised educational institution, though higher qualifications are preferable.
- You should be ready to make an initial investment of ₹3 Lakh to ₹4 Lakh along with a refundable deposit.
- There should be office space available with you and it should be at least 100 square feet. It can either be rented or owned.
- For you to be a sub-broker of Religare Securities Franchise, you need to be an individual, company, partnership firm, LLP having a will to be an entrepreneur. Persons having experience in financial or stockbroking sector are preferable candidates to become the firm’s stockbroker.
- A certification of NCFM or NISM or BCSM or BCDE is needed. You can have at least one of these or more than one.[/su_list]
Religare Securities Franchise Offers:
Here are some offers which you can avail on opting to join Religare Securities Franchise:
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- It will provide complete assistance while you are setting up your business.
- Clients can avail the customised solutions to perfectly suit their requirements.
- You can negotiate the deposit that has to be paid.
- It serves as a one-stop shop as it provides a PAN or TAN facility.[/su_list]
If you are looking to become a sub-broker or a stockbroking business partner in any form, let us assist you in taking the next steps forward:
Religare Securities Franchise FAQs:
Some frequent questions may arise in your mind when you decide o join the Religare Securities Franchise. We have answered all such questions in the following section to make the process clear to you:
What are the different partnership models of Religare Securities?
You get the option to choose from the two partnership or business models which are offered by Religare Securities, i.e the sub-broker model or the Remisier model.
Is there any initial investment I need to make in order to be a part of Religare Securities?
Yes, an initial investment of 2-3 lakhs will be needed in case of a sub-broker and in Remisier model ₹10,000-₹20,000 will have to be paid. Besides this, there are other charges too.
It is always a better practice to inquire about all the costs which you need to bear in future, before partnering with the stockbroking house.
Do I need to have any past experience to partner with Religare Securities?
Yes, you should have prior experience in the financial or stock broking field to enter into the sub-broker partnership model.
What revenue share can I expect in each of the models of Religare Securities?
As a sub-broker, you can expect a revenue share of 40%-70% and in the Remisier model, the revenue share is quite low, i.e 20%-30%.
The exact revenue share which you will be getting is affected by a number of factors such as the initial deposit, the revenue obtained, the products involved in the transaction etc.
But you have the advantage of negotiating the revenue share at the beginning.
What documents need to be submitted for the registration process?
The list of relevant documents which you must submit to complete the sub-broker registration process successfully is as follows. Make sure to keep the original ones ready:
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- Aadhar card
- PAN card
- 4 photographs of passport size.
- Proof of your office address such as electricity bill, telephone bill, bank statement etc.
- Proof of your residential address.
- A Chartered accountant’s reference letter.
- Certificates showing your educational qualification.
- Besides this, some other documents may also be needed, which you will get to know during the discussion with the firm’s executive.[/su_list]
What support does Religare Securities provide its partners?
The partners get support for setting up the office and branding, setting up business goals, he is provided with personalised research reports which he can provide his clients.
Besides this, there is a dedicated relationship manager for assisting in various business operations and a contingency dealing desk to handle emergency situations.
What are the steps involved in the registration process of Religare Securities?
The following steps need to be fulfilled in order to complete the process of registration:
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- A form enquiring basic details ahs to be filled up after which you will be getting a verification call regarding your interest in the partnership model of Religare Securities.
- After this, you need to fix a date for the face to face appointment where you can ask any questions related to the partnership models and get them clarified. The executive will explain to you all the details after which you can decide which partnership model is best suited for your requirements and business goals.
- Once you decide the business model, you will have to deposit all the relevant attested documents that have been enlisted in the previous section along with other documents which you will be asked to.
- A cheque for depositing the security amount has also to be deposited.
- In the Religare’s corporate office, all your documents will be processed and verified, after which a token ID will be issued.
- In order to run your business, you will get the login credentials of the back end systems along with that of the trading platforms for executing the client’s orders. To make sure that every operation is carried out smoothly, the broker’s executive will carry out the official inspection.[/su_list]
How long does the registration process take to be completed?
It takes about 12- 15 days for the whole process to be completed if you submit all the relevant documents without fail. In case any information is found missing, then the process will take a longer time to be completed.