SBI Securities Franchise business is India’s oldest broking partnership business which began in the year 1950. It was started by the country’s largest public bank, SBI or State Bank of India.
Through its numerous services and products, the of State Bank Group’s and SBI Capital, SSL’s broking venture would soon become the leading financial company. In order to make sure that the quality remains top-notch, the count of SBI securities franchise is not very high.
Find more details about this franchise business in the following sections of this article.
SBI Securities Partnership Models:
SBI Securities offers a single partnership model i.e SBI Securities Franchise or sub-broker (terms used interchangeably). This is the only option you get when you opt to join SBI Securities. Thus you will be able to completely dedicate your focus to fulfil the requirements to become a sub-broker.
In order to expand the business and enhance the geographical coverage of the company, a major role is played by the sub-brokers. They strive to ensure complete support to the customers so that they remain satisfied and thus succeed to fulfil their dreams.
SBI Securities Franchise Initial costing:
An initial amount of ₹1 Lakh needs to be deposited by you if you opt for the SBI Securities Franchise.
This is the minimum amount that acts as a security deposit and may be extended up to ₹3 Lakhs. You will get back your security deposit once you opt to leave the partnership business with SBI securities.
In order to set up the infrastructure for the business, an amount has to be paid initially. You need to have an office with a workstation and a good internet connection as most of the operations will be carried out online.
Besides this, the total cost incurred depends on the number of facilities such as the area of your office, furnishings etc., all of which are essential for providing a better experience to your potential customers.
Some other non-refundable charges are also there which you will get to know once you have a face to face meeting with the representatives of SBI Securities. You need to pay BSE and NSE membership charges which is one of such basic non-refundable charges.
As per the guidelines of SEBI, as a sub-broker, when you obligate a need and liability that is compulsory, the security money is used. In case you fail to pay any miscellaneous money, the amount will be deducted from the security deposit.
SBI Securities Franchise Revenue sharing:
The revenue sharing percentage of SBI Securities Franchise ranges from 50% to 60% of the total revenue that the sub-broker generates. It can be in the 50:50 ratio of even 60:40. It implies that the sub-broker will have the right on 50%-60% of the revenue generated and the broker will be entitled to the remaining 40%-50%.
The final revenue share also depends on the amount that has been initially investment to begin the business, the scale of the business initiated by the sub-broker as well as your skills to negotiate the share.
The sub-brokers happily continue their partnership with the leading brand owing to the decent revenue generated that makes them feel rewarded.
SBI Securities always strive to ensure that the revenue sharing ratio should be in the sub-brokers’ favour. Such business policies help in the advancement of the business by creating a win-win situation for the broking firm as well as the sub-brokers.
SBI Securities Franchise Benefits:
With SBI Securities Franchise, you can enjoy numerous benefits, which are enumerated below:
An established brand name:
Since SBI Securities is a part of the oldest bank in India, it becomes quite easy for you to do the business. The potential customers are attracted to the well-established brand name. So you do not have to put extra efforts in marketing it and creating a good impression of the SBI Securities franchise in the minds of the potential clients.
There are a number of platforms available for trading purposes, such as mobile, desktop etc. As a trader, people can opt for online and offline trading too, as per their convenience.
Flexible brokerage and lucrative returns:
The brokerage plans provided by SBI Securities are flexible and provides better returns. Depending on a number of factors, there are chances of higher returns also.
Sub-brokers can get help from SBI Securities for setting up the infrastructure also.
Range of products:
SBI Securities offers a wide range of services and products so that the clients can choose as per their requirement. Sub-brokers can distribute such products and services to the third party.
SBI Securities Franchise Drawbacks:
There are certain demerits of this franchise business, which you need to be aware of, before opting to start the partnership. These are enlisted below:
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- In the case of small sub-brokers, the revenue sharing ratio is not very attractive.
- Since SBI securities offer only one partnership model, potential clients looking out for other options may feel reluctant to join it as there are a number of other full-service stockbroking houses in India that provide numerous business models to choose from as per their requirement.
- You can’t do commodity trading with SBI Securities unlike most of the other stockbroking houses.[/su_list]
SBI Securities Franchise Eligibility criteria:
In order to start an SBI Securities Franchise business, you need to fulfil certain criteria, which are enlisted below:
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- You should be at least 21 years old to begin the SBI Securities Franchise business.
- Financial background with experience in handling various financial products is necessary.
- An educational qualification no less than graduation is required to begin a SBI Securities Franchise.
- Registration certificate or licence is needed for any stock exchange of India.
- It is essential to have a good clientele at your disbursal.
- You should have an office space where the clients can comfortably interact with you regarding the business.[/su_list]
SBI Securities Franchise Offers:
SBI Securities provides a number of offers to those who intend to join its franchise business. These are as follows:
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- Numerous trading methods are available along with those for research and calculation that enables you to smoothly carry out business processes. The different online modes include accessibility through desktop, mobile, or offline methods of directly visiting the branch.
- A variety of financial products are made available such as the currency, bonds, shares, IPOs, equity, loan against securities etc.
- The company not only provides services to the retail customers but also the institutional customers and the NRIs too.
- As a sub-broker, you can get reports regarding detailed analysis and in-depth research work such as Tax calculators, EMIs, fundamental research and analysis, etc.
- It becomes easy for you to increase the clients base as the company provides various kinds of investment methods which are well communicated through webinars, FAQs in the website, demonstrative videos, and by talking with the experts.[/su_list]
If you are looking to become a sub-broker/franchise/any other stockbroking business partner, let us assist you in taking the next steps forward:
SBI Securities Franchise FAQs:
Some questions arise in minds of the potential clients frequently when they opt to join the franchise business of SBI securities. We have answered such frequently asked questions in the following section in order to make things easier for you to comprehend.
How long do I need to wait for the registration process to be completed with SBI Securities Franchise?
It generally takes a period of 10 or 12 days for the whole sub-broker registration process to be completed, so that you can begin the business. This is the optimum time when you submit all the necessary documents without fail, otherwise, it may take even longer.
What are the various documents you need to submit to initiate the registration of SBI Securities Franchise?
Here is the list of documents which you have to submit for the registration process to begin:
- 2 photographs of passport size.
- Any of the basic proofs for KYC such as PAN card and Aadhar card.
- Certificates showing your educational qualifications.
- The agreement of your rented office space and other such relevant documents
- Certificates showing your date of birth.
- A cancelled cheque or bank statement.
Why should I opt for SBI Securities instead of other full-service stock broking houses in the market?
With SBI Securities, you will be a proud partner of a renowned company that has won a number of awards, get access to trading platforms on various devices such as mobile, desktop etc. as well as offline facilities. You can even get better returns if the high brokerage is generated.
Not only this, you will be able to make well-informed decisions as you will have access to detailed quotes, heat maps for thorough analysis before making any investment and decisive screeners.
Does SBI Securities provide any training programs?
SBI Securities gives importance to the quality of its business rather than just expanding it quickly. Because of this reason, only you can notice that it has a small sub-broker client base. To be precise it has only 1000 of them but they are great players in the competitive marketing environment.
So, it provides high-end support and trains its sub-brokers in order to keep them updated with the latest tools and techniques. This enables them to efficiently carry out business operations.
The SBICAP Securities partner program offers exceptional support. Similarly, there is notable infrastructural support available for technology and management of the office.
From the back office, what assistance can I expect from SBI Securities?
The back office support services provide all the details of customers that are being carried out by a sub-broker or franchise. Besides this, it provides assistance to the clients who are bound to the desk by shoving the email or SMS notifications.
What research advisory and marketing support does SBI Securities provide?
SBI securities are well known for its top-notch research and advisory guide. With the technical investigation and reports, recommendations and tips, the clients can get a good return on their investment.
The company has customised investment alternatives available for the High Net Worth Individuals. Timely marketing support is provided in the form of TV commercials, posters, banners, etc.
Is this a good option for NRI customers?
In order to meet the investment needs of NRI customers living in various places across the world, SBICAP Securities Limited offers a range of services. NRIs can avail the innovative trading platform offered by SSL to get a feeling as they are at home.
To make sure that the queries and requirements of the NRI customers are dealt with efficiently, there is a special NRI desk to cater to such needs. The popularity of the SBI Securities owing to their best quality SSL services is evident from the large NRI client base present all across the globe.
Do I need to make an initial investment in order to start an SBI Securities Franchise?
Yes, an initial investment ranging from ₹1 Lakh-₹3 Lakhs is needed in order to begin a Franchise with SBI Securities. This is the security deposit that is refundable in nature while you decide for leaving the business.
Is it necessary to have prior experience to start an SBI Securities Franchise?
Yes, persons having previous experience in the financial trading market are preferred clients to become sub-brokers.
What is the process of registration of SBI Securities?
Here are the steps which have to be followed to start the process of registration to become an SBI Securities Franchise:
- An application form needs to be filled. It asks all your detailed information and can be done either offline or online.
- After filling the form, the call centre executive will call you for verification purpose.
- Then you will get a call for fixing an appointment in order to have a detailed idea of the business model. This will be accomplished by a direct meeting with the SBI Securities’ representatives.
- Once you understand everything, the security deposit cheque has to be submitted along with other relevant documents. These documents will be verified and processed after which an account ID will be created. This will need about 10 or 12 days for completion.