SHCIL Franchise, founded by Sanjay Pote, is one of the top players in the stockbroking industry in India through its huge offline presence in the form of sub-brokers. It is Stock Holding Corporation of India’s wholly owned subsidiary that became a public limited company in the year 1986.
This full-service stockbroker with its corporate office in Mumbai has a strong presence in the market for over the past 30 years. Its offline presence is spread throughout the country.
SHCIL Franchise Review
There are many investors including the renowned banks and financial institutions which promote SHCIL. The company provides annual reports every year.
It provides numerous services as well as various segments for trading to its clients because of which it has a large and diverse client base.
If you want to partner with this firm, you should be well aware of its different aspects such as its business models, initial investments, revenue sharing, benefits, drawbacks, and offers.
You should understand the business models of a stockbroking firm before making an investment. So, in this article, we have covered different aspects of SHCIL franchise such as its initial investment, the revenue sharing, offers, benefits as well as drawbacks, so that you can take a right decision
SHCIL Business models:
There are two business models offered by SHCIL, which are as follows:
SHCIL Franchise or sub-broker requires you to pay a certain amount of security deposit in the initial stage which will be refunded to you when you decide to quit the partnership model.
You will be provided with all the updates as well as advises related to the market on a daily basis.
These are basically agents of the SHCIL through whom the firm offers its financial services to the prospective clients. Whenever earnings are obtained in this manner, a certain part of the income is entitled to the Remisier.
This model is suitable for someone who wants to enter into the stockbroking industry and get a secondary source of income.
Thus, you do not have to stop carrying out your primary business and continue enjoying a consistent sub-broker income by getting more clients added to this firm’s network in this model.
SHCIL Franchise Initial Investment:
For each of the business models, the initial investment amount is enumerated below:
You should be prepared for an initial investment of ₹1,00,000 – ₹3,00,000, which is the security money. Whenever you opt to leave the partnership, you will get back the money after deducting the non-paid amount.
This amount is charged because of setting up the infrastructure and office and for the membership purposes in BSE and NSE.
An amount of ₹20,000 is required to be invested in this model as security money.
For more information, check this detailed review on Sub-broker Fees.
SHCIL Franchise Revenue Sharing:
The revenue share you can get in each of the business models are enumerated in the following section:
SHCIL Franchise model:
In this model, you can get a revenue of 40%-60% which is at par with that of the other firms in the stockbroking industry. This percentage is not fixed and can change depending on the initial security amount which you have deposited, the amount of revenue generated, your client base as well as your negotiation skills.
In this business model, there is a flat rate of revenue sharing. When the client referred by you joins the business and starts trading with the stockbroking firm, then as a Remisier, you will be entitled to 20% of the revenue generated by them.
For more information, check this detailed review on how much sub-broker earns?
SHCIL Franchise Current offers:
There are certain exciting offers which SHCIL Franchise offers the clients:
- With a low investment, you can begin the share broking business.
- You get a fairly high opportunity to earn with low capital.
- The zero deposit offer can be availed on the cards.
- Business partners are benefited because of the flexible revenue sharing ratio.
SHCIL Franchise Eligibility Criteria:
There are certain eligibility conditions which you need to fulfil in order to start the SHCIL Franchise, which is enumerated as follows:
- You should have a proper telephone line for communication purposes.
- In order to carry out the business operations, an office is needed which should have enough space for accommodation.
- Research services are much needed in the office of the partner so that the customers can know regarding the products where they are investing.
- It is not mandatory to hire employees but highly essential to ensure that the needs of the customers are satisfied.
- A few stockbrokers require you to pass the sub-broker exam as a mandate. You are advised to check with the SHCIL franchise executive about this requirement.
SHCIL Franchise Benefits:
Here are the benefits you can enjoy by starting the SHCIL Franchise:
- It is a well-known brand since it has a good offline presence in the country. It is a govt. stockbroking company because of which people trust it.
- Its revenue sharing is quite lucrative.
- A Demat account will be opened for free.
- The firm provides Robust IT solution support to its customers.
- It also provides data security and risk management.
- For support, every customer is provided with a relationship manager.
SHCIL Franchise Drawbacks:
There are certain drawbacks associated with this business model, which are as follows:
- The brokerage involved in this model is high.
- It needs comparatively a high initial investment.
- It has a slightly buggy iOS app.
- The firm can further try to enhance their practices for customer satisfaction.
In case you are looking to become a sub-broker, let us assist you in taking the next moves ahead. Just fill in a few basic details here to get started:
SHCIL Franchise FAQs:
In order to make the process easier for you, we have answered some frequency asked questions in the following section regarding the SHCIL Franchise:
What are the business models offered by SHCIL?
SHCIL provides two business models, i.e the SHCIL Franchise model and the Remisier model.
Do I need an initial investment in SHCIL Franchise?
Yes, an initial refundable security deposit of ₹1,00,000 – ₹3,00,000 is needed to start this franchise business. In case you decide to quit the model, you will get back this amount.
What return can I expect from SHCIL franchise?
In general, a return of 40%-60% of the total revenue share can be expected from this franchise business. But this changes subject to various conditions such as the initial amount that you have deposited, the size of the client which operate under you, revenue generated and your negotiation skills.
What benefits can I get from SHCIL Franchise?
Here are the benefits which you can avail by starting the SHCIL Franchise:
- The company will provide you with support in marketing, operations, training, etc.
- Unlike the generic firms, here you can get the benefit of the latest technology along with quick IT support.
- The clients are provided with training as well as support regarding the products offered by the firm. Besides the development in business, this helps in personal growth too.
- You will be consistently updated about the global as well as domestic market along with in-depth research reports that play a vital role in taking the right investment decision.
- Regarding mutual funds also, you can get updates consistently
- and avail the personalized reports on request.
- In order to assist you in every aspect of the sub-broker registration process and other things of the business, you will be assigned a Business Development Officer.
- The main motivation for the clients is the generation of a better revenue through the attractive revenue sharing ratio.
What services does the SHCIL franchise provide its clients?
SHCIL provides its services to the domestic as well as cross border investors. This includes:
- Custodial services
- Clearing and settlement services (Cash segment)
- Physical and electronic safekeeping services
- Customized reports
- Premium offerings
- Asset servicing.
Which trading segments can you get with SHCIL franchise?
SHCIL franchise has its membership in BSE and NSE and allows the partners to trade in Equity, Derivatives, Currency, Mutual funds.
What steps do I need to follow to complete the registration process?
Here are some easy steps that you need to follow in order to complete the registration process:
- A form needs to be filled up that seeks all your basic details. You can do this online or offline. Then you will get a call regarding verification of your interest in the venture.
- Next, you will get a call from the broker to give you all the information about the business model after which another appointment will be fixed with the broker to discuss other related things.
- During the meeting, you can get all your doubts clarified regarding the investment and other terms and conditions. At this point, you need to negotiate the initial investment you have to make. This is the right time for it as doing it later will not provide you with any benefits.
- Generally, the sales executives do not openly say that the initial investment is negotiable, so it is always recommended to begin this from your side. It is the point where your negotiation skills will land you in a good beneficial stage.
- Once you are fine with all the information, you can submit the necessary documents along with the security amount cheque,
- These documents will be sent for verification after which an account ID will be generated. Using this, you can start business operations.
How long will the process take to be completed?
It takes about 6-10 days for the process to be completed if you submit all your documents without fail. In case there is any information missing, the process will take longer.
What trading platform does SHCIL franchise offer its clients?
There is a web-based trading platform offered by this firm where you can trade by logging into the profile. You can use in different browsers such as Mozilla, Microsoft Edge, Chrome, etc.
What are the features of SHCIL’s trading platform?
The trading platform provided by this firm has amazing features which are enumerated below:
- Since the platform is web-based, you will not have to download it and the only thing you need to have is reliable internet connectivity.
- You can witness live marketing streaming.
- It has features of email alerts.
What app does SHCIL provide for trading purposes?
The SHCIL Services Mobile Trading App offered to the customers is quite easy to use and is supported by ion iOS as well as Android. Some of its interesting features are as follows:
- You can trace your investments with ease.
- In the least possible time, you will be able to trace the stock market details.
- It offers a quick issue redressal system to the customers
If you wish to learn more about sub-broking and franchise models of other stockbrokers, here are a few references for you: