Authorised Person
Motilal Oswal Franchise
Motilal Oswal Franchise is one of India’s most prolific stock broking franchises.
This article will have a detailed Motilal Oswal Franchise Review and a deep analysis of Motilal Oswal Sub Broker Offers, Motilal Oswal Franchise Commission Model, their Franchise cost & other important features of the Motilal Oswal Authorized Person Program.
About Motilal Oswal Franchise
Motilal Oswal, one of the solid brand names in broking, is a popular choice among sub-brokers. The most critical reason for this popularity is the strong support of its sub-brokers.
Another reason can be the multiple business models & the level of flexibility one enjoys. Motilal Oswal deals in various products viz. equity, commodities, currency, derivative instruments, investment instruments like SIPs, mutual funds, IPO Investment, insurance, and many more.
Motilal Oswal has a huge variety of services like Demat account, online trading, intraday trading & more, so the business opportunities that sub-brokers get are multiplied.
Currently, Motilal Oswal Franchise or Motilal Oswal Authorized Person Program has a very wide network presence in the nation – they are present in more than 500 cities with almost 1500 sub-broker offices.
The article herein discusses the business opportunities available with Motilal Oswal and how to register with them. New SEBI Guidelines has released wherein All Existing Sub Brokers will now be Converted into Authorized persons.
The Roles, Responsibilities & business model of Motilal Oswal Authorized Person will remain the same as Sub Broker. Only the registration process will differ; the process will be much easier & quicker.
All new franchisees will now be sold in the name & legalities of the Authorized Person & not in the name of Sub Broker.
Motilal Oswal Franchise offers four types of business models to their partners:
- Franchise / Sub Brokership / Authorized Person
- Remisier
- Employee to Entrepreneur Program
- Channel Partner
Let’s have a detailed review of all four of them:
Motilal Oswal Franchise / Motilal Oswal Sub Broker / Motilal Oswal Authorized Person
The Motilal Oswal Franchise model is a general franchisee model wherein the franchisee acts as a retail store for Motilal Oswal.
Herein, the candidate must undertake the role & responsibilities of an entrepreneur or a businessman. The candidate enjoys & leverages the brand name of Motilal Oswal.
However, all the other responsibilities, like identifying opportunities, talking to potential clients, making the clients invest in more variety of assets, retaining the client, undertaking trading/investing on behalf of the client, etc., are upon the Motilal Oswal Franchisee.
Benefits to Motilal Oswal Authorized Person:
- Association with a renowned & reputed brand name;
- Wide variety of products to have a larger client base;
- Assistance by a dedicated relationship manager;
- Special packages and customizations for specific clients;
- Assistance in setting up the workplace;
- Training in all sectors.
Motilal Oswal Employee to Entrepreneur programme
This is a specific model for people who are employed with broking firms. Herein, due to the candidate’s experience, the terms of arrangement might differ from that in the Franchisee model for investors.
Under this program, an employee turns into a business person, and the growth opportunities for such a candidate would entirely depend upon him and not on his employer.
Because of this very reason, many employees with outstanding performance records opt for this model of Motilal Oswal. This helps them to earn money for themselves and not for their employer.
This gives the candidate a huge career jump, i.e., from an executive to an owner.
Benefits of Motilal Oswal Employee to Entrepreneur Program:
- A huge career progress
- Directly working on own’s progress, no more dependence on the performance of the whole organization;
- Direct earnings
- Independence to set own procedures & way of doing business
- It can also be taken as an extra source of income along with a fixed salary
Motilal Oswal Remisier
This is a widely available business model- almost all brokerage houses now have this model available for the sub-broker candidates. Under the remisier model, the candidate must act as a remisier.
The candidate is not required to take up many responsibilities; rather, the role is limited to that of an introducer.
Thus, this is a simpler role and suitable for candidates who do not wish to set up a full-time business but would like an extra income source.
Benefits of Motilal Oswal Remisier:
- Acts as an additional source of income
- Minimum efforts provide substantial earnings & results
- No dependence on any external factors
- Opportunity to capitalize on the social groups of the candidate
- Least formalities to be followed for registration
Motilal Oswal Channel Partner
Motilal Oswal Channel partner is a business model suitable for sub-broker who are currently dealing in only limited products, say equity or derivatives.
Thus, a sub-broker who wishes to diversify his product profile (e.g., Currency, IPO, mutual funds, insurance, etc.) and services and thus increase their earning opportunities should opt for this.
Thus, this would be scaling up a bit of the already established business. It is a great offer for those who constantly look forward to expanding and multiplying their earnings.
Benefits of Motilal Oswal Channel Partner:
- Upgrading the business
- In addition to product offerings
- New services to offer to clients
- Multiplies earning capacity
Motilal Oswal Sub broker Commission / Motilal Oswal revenue sharing model
With many business opportunities with Motilal Oswal, Motilal Oswal must give its sub-brokers a good revenue-sharing ratio or commission rate.
Hence, the broking franchise has fulfilled this, and its revenue-sharing ratios are quite competitive with the market rates. Motilal Oswal is among those broking firms that have realized the high potential that a sub-broker carries.
Accordingly, Motilal Oswal ensures that sub-brokers are well-remunerated to maintain a healthy & happy association with them.
Motilal Oswal’s Progressive Business Model
The broking house also adopts a progressive revenue-sharing model in some cases wherein the ratio or revenue depends upon the revenue generated – the higher the revenue, the higher will be the ratio of sharing.
But in some cases, it might also have a fixed revenue-sharing ratio. The Revenue Sharing Model or Commission Model differs for each Sub Broker Model.
This is because each model carries a different degree of risk and responsibilities, and hence the earnings for each model also differ.
The model with more responsibilities & more risks would carry a higher return, and the one with lesser functions and responsibilities would result in a lesser revenue share.
Motilal Oswal Commission Sharing with Multiple Business Models
Let’s discuss the Commission ratio of all Sub Broker Models:
Motilal Oswal Franchise
Herein, the revenue ratio ranges from 60% to 80%, with a median of 70%. Thus, a person associated with Motilal Oswal as Franchisee would earn between 60% to 80% of the revenue from their clients.
Motilal Oswal Employee to Entrepreneur
The ratio is more or less in line with that in the case of Franchise, i.e., 60%-70%. This is because the functions, responsibilities & risks involved in this model are at par with the Franchisee model.
Thus the discussion in the point above applies to this point as well.
Motilal Oswal Remisier
A remisier performs only the initial part of the entire business cycle and can be a very limited contributor to the business cycle.
Accordingly, the revenue for this model is limited to 20% on average. However, the ratio may also range from 15% to 30%.
Motilal Oswal Channel Partner
The Channel partner is a person who has an existing set of clients and is now engaged in a wider product/service base.
Since a channel partner brings a huge client base and an opportunity to add a lot of potential clients and traders to the Motilal Oswal network, this model gets the highest revenue ratio.
The additional or incremental revenue is based on the incremental revenue opportunities that Motilal Oswal gets. The revenue ratio ranges from 70% to 90%, with an average of 80%.
Check the Table below for a better understanding of the Motilal Oswal Commission Models:
| Business Models | Motilal Oswal Commission | Sub Broker Commission |
|---|---|---|
| Franchise / Sub Brokership / Authorized Person | 40% – 20% | 60% – 80% |
| Motilal Oswal Employee to Entrepreneur | 40% – 10% | 60% – 70% |
| Motilal Oswal Remisier | 85% – 70% | 15% – 30% |
| Motilal Oswal Channel Partner | 30% -10% | 70% – 90% |
Motilal Oswal Franchise Cost or Security Deposit
Motilal Oswal also calls for certain security deposits & investment infrastructure.
The security deposit is mandated to be used in cases wherein the sub-broker commits any fault and needs to be penalized per the directions of the stock exchange or SEBI.
Suppose the sub-broker does not pay the penalty. In that case, the principal broker (i.e., Motilal Oswal) can use the security deposit to pay such a penalty on behalf of the sub-broker. Another instance of this security deposit could be the non-payment of margin money.
The security deposit amount would differ from model to model. The amount may range between INR 10,000 to INR 10 lacs.
There are a lot of other factors also that influence this amount. Some such factors are – the credit history maintained by the sub-broker or authorized person, the revenue generated, the city of the sub-broker, the category of clients, the products offered by the authorized person, etc.
Motilal Oswal Sub Broker Infrastructure Set-Up
Infrastructure Setup is necessary for every Sub broker. The infrastructure includes a decent workplace – and office with few workstations, trading terminals, telephone connections, internet connectivity, etc.
Infrastructure setup is not needed for remisier because they don’t interact with customers much. Rather for all other categories, they need to interact with clients day in and day out.
There would be a lot of instances when the clients would need to visit the sub-brokers office, and Motilal Oswal would want the clients to have a good feeling about their sub-brokers office as it would directly represent & reflect the brand of Motilal Oswal.
The investment amount herein ranges from 1 lacs to 5 lacs depending upon whether tier 1 city, tier 2, tier 3, the category of clients, the projected revenue, etc.
Check Motilal Oswal’s Franchise Cost in the below Table:
| Business Models | Motilal Oswal Franchise Security Deposit Amount |
|---|---|
| Franchise / Sub Brokership / Authorized Person | INR 25000 – 100000 |
| Motilal Oswal Employee to Entrepreneur | INR 25000 – 100000 |
| Motilal Oswal Remisier | INR 10000 – 25000 |
| Motilal Oswal Channel Partner | INR 100000 – 1000000 |
Motilal Oswal Sub Broker Offers
So, Motilal Oswal often launches promotional schemes to attract and retain the sub-brokers & franchisees. Some of the popular schemes are:
- Free DEMAT accounts;
- Access to research reports for Free;
- Free advisory Support for a specified period;
- Increased credit period;
- Reduced margin money;
- High revenue sharing ratio;
- Financial Support in setting up a workplace;
- Reduced security deposit
Motilal Oswal Franchise – Eligibility Criteria
To become a sub-broker with Motilal Oswal, one needs to comply with the following conditions:
- First & foremost is the registration with SEBI and the stock exchange – this is the most critical condition as without fulfilling this condition, no one can be eligible to become a sub-broker;
- Should have a good track record & good client base in the financial/stock market
- Sub Broker must be adaptable to the policies & procedures of Motilal Oswal
- Should be free to accept the design & structure to reflect Motilal Oswal Brand
- The franchise owner must be at least 18 years of age.
- Should be a graduate
- Any stock market/financial market certification would be an add on
Motilal OswalSub Broker Support / Advisory
Motilal Oswal assists sub-brokers via its robust Support and advisory channels. Simply put, the variety of Support provided by the broker covers
- Back Office Support
- Advisory Support
- Trading Support
- Marketing Support
- Website Support
- Business Advisory
- Operational Assistance
- Strategies Assistance
The broker offers multiple services and assistance to its franchise partners in every supported type. You can always stay assured about the services Motilal Oswal offers because the broker believes in giving special care to everyone.
Apart from these direct-to-sub brokers’ services, the broker does care about complete assistance to the clients, ensuring the sub-broker’s relationship with their clients is never affected.
How to Become a Motilal Oswal Sub Broker or Authorized Person?
- Please fill in the lead form provided herein above.
- Our executive will contact you (kindly ensure that accurate details are provided) and confirm your interest.
- Our executive will connect you with Motilal Oswal Team, and then the Motilal Oswal team will have a telephone call to discuss the interest & ensure the basic eligibility
- Motilal Oswal team will fix an appointment, and in that meeting, all terms & conditions of the partnership will be discussed and agreed upon
- The candidate will submit the documents that meet the eligibility criteria (refer next section to see the list of documents required)
- After document submission, the agreement will be made & Motilal Oswal will generate the sub-broker ID and then log in.
Documents required to become Motilal Oswal Authorized Person
List of documents required for Motilal Oswal sub-brokership:
- PAN card copy
- Address proof
- Aadhar card copy
- Residential proof
- Age proof
- Graduation mark sheet
- Experience certificate
- SEBI registration certificate
- Investment proof
- Security deposit cheque
Why Partner with Motilal Oswal Franchise?
Check out the various reasons to partner with MotilaOswal:
Big Brand
Motilal Oswal is a renowned brand name and carries a lot of weightage.
High-End Support & Training Programs
Motilal always goes for cream, i.e., quality over quantity, their sub-broker client base is only 500, but all of them are big players in the market.
There is a big belief among these big players that Motilal’s support system is quick & trustworthy.
Motilal also conducts massive training sessions for their partners across segments & they are known for their high-end support system.
Powerpact Technology, Back Office Infrastructure
Motilal Oswal provides a wide range of trading tools across all devices & platforms. They also provide vital back-office services to their partners, which provide all the details of the clients that each sub-broker or Franchise is holding.
This back-office platform also helps push notifications in the form of emails or SMS to inactive clients.
Top Shot Research & Advisory
Motilal Oswal is known to have one of the best Research & Advisory teams. They are also helping their partners with many training sessions to strengthen their advisory Support to the clients.
They provide all sorts of technical analyses & reports to the sub-brokers & channel partners to help the clients get a better return on investment.
Marketing & Other Support
Marketing & branding support is one of their core strength areas – the sub-brokers benefit greatly from this. They tailored investment options for high-net-worth individuals.
The broking also provides Customised solutions to large sub-brokers.
Motilal Oswal Franchise – Pros & Cons
It’s time to get your eyes on the major pluses and minuses of the Motilal Oswal because we don’t want you to decide with any wrong or false opinion.
Let’s watch what’s covered in the pros section first.
Pros of Motilal Oswal Franchise
- Franchise Partners are exposed to multiple business models
- Multiple ranges of Support and advisory services
- A well-built repo derives market attention toward Motilal Oswal
Cons of Motilal Oswal Franchise
- The upfront cost is slightly high for the Franchise
- It is a bigger player in institutional online trading and isn’t that popular among retail traders
Motilal Oswal Franchise Registration
It’s time to break down a series of information regarding Motilal Oswal Franchise Registration. Perhaps you aren’t aware of a few things.
- To apply for the Franchise at Motilal Oswal, you need to follow a few basic steps that are as follows.
- New joiners need to fill up a form regarding the application for Motilal Oswal Franchise and submit it to the broker hereafter.
- Similarly, a few basic queries must be answered when filling out the franchise form.
- After that, a representative from Motilal Oswal will get in touch with you.
- A physical meet-up will be scheduled between them and the franchise hereafter.
- Further formalities are completed to start the business.
Earning the potential of a Motilal Oswal Partner / ROI
Without knowing what meaningful and decent figures, you will make in the profits, starting the franchise program doesn’t make sense. So let’s make it easy for you.
The broker promises 50%-70% revenue sharing to its sub-brokers. But it depends more on the quality of clients.
If the client sent by Franchise brings huge investment capital to Motilal Oswal, you simultaneously get to make more from the broker.
But before focusing on the revenue-sharing process of Motilal Oswal, it’s worth noticing whether you are eligible to become a partner or not.
It is worth noting that minimum investmentcapital is required before starting a franchise partnership with the broker.
Motilal Oswal Franchise Referral Program
Apart from its institutional-level franchise program, the broker also runs a well-built referral program. And the best part about this program is that you aren’t required to be a registered partner of the broker.
Simply refer the Motilal Oswal to your family and friends and insist they on opening a trading account or Demat account with the broker.
Each time a referral client acts on your guidance and submits a minimum deposit amount in the MO account, you make a commission. Isn’t that simple?
But it is worth noting that these referral incomes are sometimes offered as Amazon gift vouchers.
Brokerage Charges were levied on the clients of Motilal Oswal Partners.
The brokerage charges are the biggest factor that may drop your chances of attracting even a single client. Franchise partners always seek special discounts and offers from Motilal Oswal, and the broker never disappoints.
You can offer clients to join the Motilal Oswal trading platform at a discounted price.
Simultaneously, this raises your chances of making more from your franchise partnership with Motilal Oswal. You can also discuss more on these offers directly with the broker.
Motilal Oswal Authorised Person – Products Offered
Besides being a franchise partner, you even have the option to become Motilal Oswal Authorized Person and assist the broker in its business growth.
By becoming a MO partner, you can access the following opportunities in no time. Such as:
- Partner Portal & e-KYC for an authorized person
- The unnati-certified course of broking & distribution
- An uppermost authorized person mobile app
The broker already thinks of the authorized person to build a bright future for themselves and the brokering firm. Not just that, you will also be accessing full-time Support from the broker during the whole cycle.
List of Top Motilal Oswal Partners / Business Partners
It’s time to discuss Motilal Oswal partners or business partners and how you can become one of the business partners of this giant broking firm.
If you possess entrepreneurial skills, you can become a franchise partner. You can become an entrepreneur with a broker if you are an employee.
And if you already run a well-established business, you can collaborate with Motilal Oswal and become their channel partner.
Motilal Oswal Partner Testimonials
- We are very happy being a sub-broker with Motilal Oswal. They have lent us huge Support throughout. The progressive revenue ratio is one feature that we liked the most. Also, the marketing support & the training support that they provide is just too great. By – Hemal Shah, Thane.
- It has been a very long association with Motilal Oswal. I felt that I do not need to look for any other opportunity. Even during the recession, I received all forms of Support from Motilal to ensure a smooth run of my business. I’m also very fond of the seminars they regularly conduct – this has helped add new clients. By – Lavesh Gehlot, Jodhpur.
Motilal Oswal Franchise Summary
In brief, Motilal Oswal is one of the popular choices for sub-brokership because of its flexible & multiple sub-broker models.
Another reason is the revenue sharing ratio system that is fair and progressive from the sub-broker’s viewpoint. The third factor is the Support & training that a sub-broker receives from Motilal Oswal is commendable.
Also, the easy registration process is an added advantage – it makes a quick way of beginning the work & a quick & easy first step towards your own business & passion.
Motilal Oswal Authorized Person Program FAQs
Here is the list of Motilal Oswal Franchise FAQs:
Types of the sub-broker model?
There are four models: Franchisee, Employee to Entrepreneur, Remisier& Channel Partner.
Procedure to partner with Motilal Oswal?
Fill up the form herein, and we will connect you with Motilal Oswal Team.
How much time does the registration process take?
The Sub Broker registration process takes 3 to 5 days to complete; fill up the form below to start.
Commission on becoming Motilal Oswal sub-broker?
It ranges from 20% to 80%, depending upon the model chosen.
Does Motilal Oswal provide Support after becoming a sub-broker?
Yes, there is constant support in marketing, advising clients, training clients, training the staff, educating on the mechanisms of the stock market, and operating the trading platforms.
Does Motilal Oswal have Sub Broker Model?
Yes, the sub-broker model is provided from the stock broker’s end. You will be able to invest a significant amount of money in registering as their sub-broker and earning a lot of money while carrying their operations forward.
Does Motilal Oswal have multiple Franchise models?
Yes, there is a list of models you can invest in, and they are regarding the prevailing need of availing of versatile business opportunities. The multiple models are Franchise / Sub Brokership / Authorized Person, Remisier, Employee to Entrepreneur Program, and Channel Partner.
What is Motilal Oswal Sub Broker Commission?
Considering the entitlements, precisely in terms of the revenue, there is a higher ratio of revenue that you will retain. The stock broking house provides flexible revenue sharing, where 60% – 80% is provided to the sub-broker.
How much does Motilal Oswal Franchise Cost?
So, if you wish to stick with the sub-broker model, you will have to pay an initial investment within the prescribed average range. The structure of the model shows that there is a need to provide an investment of between INR 25,000 – 100,000.
Does Motilal Oswal have a Partner Program?
Yes, contrary to the sub-broker model, you can opt to invest in the remisier model. Other franchise models are provided by the stock broking house other than the remisier and the sub-broker business model. You can refer to the article for the same.
What is Motilal Oswal Partners Sharing?
The partner sharing is pretty defined and fair enough per the structure it is based on, i.e., the job responsibilities and the delegation. According to the defined model, the partner’s share is 15% – 30%, whereas the broker will retain 85% – 70%.
Is Motilal Oswal Partner Program Free?
No charge is associated with this particular stock broking house’s partner model. You have to provide the thereby designated amount, which should lie between INR 10,000 – 25,000, to the stock broker to avail of the model.
Does Motilal Oswal provide Training Assistance?
You will be entitled to high-end training being their franchisee. The stock broking house will thoroughly train you in many terms, letting you carry out your business smoothly. They provide training in all sectors so sub-brokers can gain clients easily.
How to Become Motilal Oswal Sub Broker?
The process is seamless, and you can get in touch with the stock broking house upon clicking the “Become Sub Broker” button. When you click the button, you will see an instant pop-up from which you must fill accordingly.
Does Motilal Oswal Franchise provide Support?
As for the Support you will get from the broker, it is Free advisory Support, Financial Support in setting up the workplace, Marketing & branding Support is also extended, and customized solutions to large sub-brokers are also rendered.
How do I become a pro partner with Motilal Oswal?
It isn’t too difficult to become a pro partner with Motilal Oswal. All it takes is the skills and knowledge mandated by the broker and legal documents for the application approval. However, minimum investment shall also be required.
What are MO investors and MO traders?
MO investors are referred to as users that invest for the long term in the asset market (typically for more than a month or year) at the Motilal Oswal booking platform. On the other hand. Mo Traders are the users who trade for a short term in the asset market (typically not more than a day or a week).
Is the Motilal Oswal franchise profitable?
Without a doubt, Motilal Oswal Franchise is profitable. The broker offers 50% to 80% revenue sharing to the partners. Simultaneously, this shows that you can make more than an expected amount from MO if you generate more leads for the broker.
How much does a Motilal Oswal sub-broker earn?
The final income figure can vary. It depends more on how much traffic and leads a sub-broker can be sent to the MO. The more you refer clients, the higher payouts you derive from the broker.
How can I open the Motilal Oswal franchise?
Anybody above 18 living in India can apply for Motilal Oswal Franchise. However, terms and conditions for each franchise program that the broker runs tend to vary.
Who owns Motilal Oswal?
Passionate Investment Management Private Limited has owned Motilal Oswal.
Can a sub-broker trade for himself?
Of course, yes. A sub-broker can trade for himself using Motilal Oswal, and during the whole time, you will not be treated as a franchise but as a typical client. This means you don’t benefit from trading for yourself apart from your profits.
What is the role of a sub-broker?
Generally, a sub-broker promotes the broker’s services and sends clients. They may be referred to as an advertising partner but not exactly as they tend to get a consistent income per-month basis upon referring a client to the main broker like Motilal Oswal.
What is the benefit of Motilal Oswal sub-broker?
Motilal Oswal sub-broker can readily fetch payouts whopping 50% to 80% of the revenue generated by the broker against a single client.
How much does it cost to become a Motilal OswalSubbroker?
Master franchise of Motilal Oswal needs to pay a franchise fee of Rs 500,000. Additionally, an infrastructure investment of Rs 750,000 is also covered. However, a standard franchise program has relatively fewer fees and investment requirements.
How many branches does Motilal Oswal have in India?
Motilal Oswal is available in over 2200 locations spread across 500+ cities in the nation. Undoubtedly, the broker has one of the largest business networks in the industry.
Kotak Securities Franchise opened its venture in 2011 & is one of the major broking franchise houses.
This article will have a detailed Kotak Securities Sub Broker Review. This review will dig deep into Kotak Securities Franchise Offers, Kotak Securities Sub Broker Commission, Kotak Securities Franchise Cost & other features of the Kotak Securities Authorized Person Program.
About Kotak Securities Franchise
The Kotak Securities Franchise is one of the first few players who recognized the business and revenue potential, appreciated the significance of having local retail outlets, and addressed the same.
Kotak Securities has also been one of those few broking companies that opened the opportunities for sub-brokers to expand their client base.
Over time, Kotak Securities has also devised several business association models with different features that might suit different categories of people.
Suppose you are interested in a sub-broker arrangement with Kotak Securities. In that case, you must read this article to understand the models available and choose as per your preference.
Having been in the market long, it has understood the varied requirements and expectations of a Kotak securities sub-broker. Hence, it offers a variety of business association models.
Though the basic concepts of the model are the same across, they certainly have distinctive key features to cater to the different strategies.
According to the latest SEBI Circular released on Aug 3rd, 2018, All Sub Broker Registration will be converted into Authorized Person Registration.
The existing sub-brokers of Kotak Securities will have to start their registration as Kotak Securities Authorized Persons by March 2019. All new registration will happen with the name of the Authorized Person directly with Stock Exchanges.
Business Models offered by Kotak Securities Partner Initiatives
Sub Broker or Authorized Person
A typical sub-broker or partner arrangement.
NetInvest Ace
This is relevant for a person currently serving clients with their mutual fund and IPO investments and wishes to expand the service offerings to include equity.
NetInvest Direct
This product is crafted for people who wish to restrict their services to sourcing clients and do not wish to cater to clients with advisory services or portfolio managing services.
These models have been discussed herein below in further detail:
Kotak Securities Sub Broker / Franchise / Authorized Person Model
To begin with, we are discussing the eligibility criteria set by Kotak Securities for appointing a candidate as a sub-broker or Authorized Person.
- One needs to be necessarily registered with SEBI and the relevant stock exchange. Apart from this, the criteria specific to the Kotak securities franchise are:
- Minimum age to be at least 21 years
- Should have experience ranging from 1-3 years in the financial market
- Should have at least completed higher secondary education
A Kotak Securities Authorized Person can serve the client with all the products and offerings of Kotak Securities like equity, derivatives, mutual funds, IPOs, depository services, margin trading facilities, etc.
It also offers access to risk management services, back-office Support, and technology.
Benefits of Kotak Securities Authorized Person:
- Huge range of products & services to sell
- Association with a huge brand name
- Benefits of adding new clients
- Allows customized solutions for the sub-broker’s prestigious clients
- Smart analytical tools & trading platforms are available
Kotak Securities NetInvest Ace
NetInvest Ace is a program for a person engaged in investing activities like IPO, mutual fund, etc., and wishes to enhance the product base with trading products like equities.
Hence, this is a business expansion program of Kotak Securities specifically devised to help sub-brokers boost their business.
This is a popular program, as many investment advisors find this to add to their income stream. This allows them to advise their existing clients to undertake trade and investing activities.
Benefits of Kotak Securities NetInvest Ace:
- An additional income stream
- The existing client base and existing business do not suffer
- More products to deal in and hence better business opportunities
- Diversified business profile
- Helps in the expansion of the client base
Kotak Securities NetInvest Direct
NetInvest Direct is a program similar to the remisier model offered by other broking houses. Herein, the sub-broker is merely required to refer a potential client opportunity to Kotak Securities, and all other things are taken care of by Kotak Securities.
Hence, the candidate acts as a referrer. This is suitable for people who do not want to get engaged in a full-time business but have many social groups who may be interested in undertaking trading or investing activities.
Many people generally take this up as additional pocket money.
Benefits of Kotak Securities NetInvest Direct:
- No hassles of business
- Limited functions
- No risks involved
- Opportunity to capitalize on the social groups
- Acts as an additional income
Kotak Securities Sub broker Commission/ Revenue Sharing Model
Kotak Securities has a different remuneration mechanism for each model or program.
Undoubtedly, Kotak Securities has a very competitive remuneration policy – this ensures that it does not lose any able & deserving candidate to a competitive firm just for a few extra pennies.
Kotak Securities is also very approachable, and the revenue ratio is negotiable with them. However, the negotiations are based on very practical and realistic factors.
Further, the revenue ratios they initially offer are also dynamic depending upon the candidate’s capability, the city, the status of the market, the projected & existing client base, etc.
Commission Sharing of various Kotak Securities Franchise Business Models:
- Kotak Securities Sub Broker or Authorized Person: Considering the functions involved & other factors, the revenue sharing ratio ranges from 30% to 50% on average. However, as mentioned above, there may be exceptions to this as their ratios are negotiable & are dependent on lot many factors.
- Kotak Securities NetInvest Ace: Under NetInvest Ace, the candidate would be certainly an experienced person and would have an existing client base – Kotak Securities understands that with this existing client base, there is a high chance that these clients may also buy its other products and hence it has an average revenue sharing ratio of 50% to 80%. The ratio is high also because of the factor that the candidate would be an experienced one – hence would certainly expect a good deal.
- Kotak Securities NetInvest Direct: This is a referrer model and hence the functions, responsibilities & investment risks are minimal – hence the return is also on the lower side as compared to the other two models. However, on being compared to the industry rates, Kotak Securities give a very decent return to their remisier. The return herein varies from 10% to 20%.
Check the table below for a better understanding of Kotak Securities Commission Sharing:
Kotak Securities Franchise Cost or Security Deposit
By industry practice, Kotak Securities also requires a security deposit. This deposit is refundable and is taken as a deposit in the first place to cover Kotak Securities against any monetary default that the sub-broker might commit.
This is generally just a formality and is also a mandatory requirement. This deposit is refunded at the end of the agreement or arrangement.
The deposit amount varies from INR 20,000 to 2 lac depending on the model chosen, the revenue figures being generated, the city of residence, the credit history, etc.
Kotak Securities Infrastructure Cost
The other investment category that a sub-broker or authorized person needs to make is the infrastructure investment.
A sub-broker must maintain the office or workplace setup to attend to the clients and conduct day-to-day business.
The typical infrastructure includes decent-sized office space, workstations, telephone lines, internet connectivity, employees (if required), basic furniture, etc.
The infrastructure investment would differ from case to case depending upon several factors: The current infrastructure (in the case of NetInvest Ace), city, types of clients, etc.
For instance, if the current infrastructure is not by Kotak Securities requirements, one may need to invest in the necessary modifications.
Similarly, in the case of a tier 2 city, the area of office prescribed may differ, and so on. This investment may range from INR 50,000 to INR 2 lacs on average.
Find the table below for a better understanding of Kotak Securities Franchise Cost:
| Business Models | Kotak Securities Franchise Cost |
|---|---|
| Kotak Securities Sub Broker or Authorized Person | INR 50000 – 100000 |
| Kotak Securities NetInvest Ace | INR 100000 – 200000 |
| Kotak Securities NetInvest Direct | INR 20000 |
Kotak Securities Sub Broker Offers
Now, Kotak Securities has always recognized the sub-broker’s great potential for business growth. Hence, many ways have been devised to retain and attract sub-brokers. Some of the offers of Kotak Securities are:
- Marketing Support
- Infrastructure support
- Progressive revenue sharing ratio
- Customized packages for clients of sub-brokers
- Free Demat account for sub-broker clients
- Reduced margin money requirements
- Increased credit period for the sub-brokers and their clients
- Limited paperwork
- Free research & advisory services for a limited time
Kotak Securities Authorized Person – Eligibility Criteria
The eligibility criteria prescribed by Kotak Securities are laid down below:
- The first & foremost is the statutory requirement- registration with SEBI & association with NSE / BSE.
- Age criteria – the sub-broker needs to be at least 18 years old.
- Qualification criteria – The sub-broker should have at least completed higher secondary.
- Good background – The candidate with a bad character history or a bad background may not qualify
- Experience – Any experience in the stock or financial market may be an added advantage. This may certainly differ from model to model.
- Certifications – Any certificates from stock or finance-related institutes may be added advantage.
Kotak Securities Sub Broker Support / Advisory
It’s worth watching out for what exactly is offered in the Support and advisory by Kotak Securities. After all, the sub-broker is actively assisted through these valuable facilities.
Our review of Kotak Securities found that the broker provides almost every support/advisory facility to its sub-brokers or franchise partners.
This Support ranges from client interaction training, advisory support, marketing support, trading support, training manuals, Support related to offers, etc.
However, the broker doesn’t provide website support to the sub-broker as it seems that almost every operation is handled and tackled by the broker itself.
How to Become a Kotak Securities Sub Broker or Authorized Partner?
- Fill up the form herein.
- Our executives will connect with you. Please ensure that the details filled out are proper. Else it will be difficult to take the process forward.
- Our executive will arrange a meeting between you and the Kotak Securities executive.
- Kotak Securities executive will discuss the models available & suitable for you. The other terms & conditions can also be discussed during this meeting.
- You will then have to provide all the documents & proof of investments.
- An agreement will be executed wherein all the terms and conditions will be documented.
- One needs 5-7 business days to start the business as a Kotak security authorized person.
Documents required to become Kotak Securities Authorized Person
The basic documents that are generally required for registration as a sub-broker are:
- Identity proof
- Address proof
- SEBI registration certificate copy
- Graduation degree copy
- Copy of 10th mark sheet
- Copy of other examination certificates
- Investment proof
Why Partner with Kotak Securities?
Here are a few reasons to partner with Kotak Securities:
Strong Brand
Kotak Securities is a part of the finance giant and carries a great brand. This would add weightage for the sub-broker.
Business Development Support
The business support that Kotak securities provide is also great strength to sub-brokers. Kotak Securities partner program helps their sub-brokers in generating more revenue.
Dedicated Relationship Officer
Kotak Securities appointed a dedicated relationship manager to assist in making and retaining clients.
Seminars & Boot Camps for Sub Brokers & Clients
The regular seminars conducted by Kotak Securities are a big add-on. These help the sub-brokers impart knowledge and thus keep a regular interaction between sub-brokers and clients.
Training & Trading Support
Kotak Securities also assists the sub-brokers with training on operating the trading platforms and how to use their smart analytical tools efficiently.
Dynamic Brokerage Plans
Kotak Securities has very reasonable & dynamic brokerage plans, making it a great choice for investors & traders and, hence, a good business opportunity for sub-brokers.
Kotak Securities Franchise – Pros & Cons
It’s time to discover more insightful information about the pros and cons of the Kotak Securities Franchise program.
So that you could determine whether it is excellent to trade/invest in the asset market via Kotak Securities or should skip the plan.
Pros
- A well-reputed brand name in the financial market
- Headquarters spread across the nation
- Decent Revenue sharing
Cons
- The initial set-up cost is comparatively higher
- Not a discounted broker
Kotak Securities Franchise Registration
The steps involved in the registration to obtain the franchise of Kotak Securities are as follows.
But before applying, make sure you don’t skip going through some essential points to identify your eligibility to become a valid franchise partner to the broker.
These include:
Your age, minimum investment capital, applicable documents, etc. After that, you can proceed with the application process.
- Simply select the partnership model from the broker’s official website
- Get the details and fill out the form to proceed
- Wait for the team to contact you soon
- Make needed documents available to the representatives
- Let them review your documents and wait for the verification
- Sign the contract and login
Deposits and the remaining criteria will be met based on your chosen partnership model and other essential metrics.
Earning the potential of a Kotak Securities Partner / ROI
Let’s reach the most important topic, ‘What’s the earning potential in Kotak Securities Partner Program?’ Honestly, it is primarily decided by how much effort you are ready to give to your job role.
Being a franchise partner, your role must be to attract as many clients as possible for investment. The broker offers revenue sharing of up to 50% to 70% on every client you refer to Kotak Securities.
However, the master franchise can also fetch a commission of up to 75% per client and access royalty benefits. Still, the return on investment will primarily be decided by the quality of the client.
Kotak Securities Franchise Referral Program
Unfortunately, Kotak Securities doesn’t offer a franchise referral program.
Aspiring joiners have the only option to become Kotak Securities, a franchise partner. But it is worth noting that specific investment tips may be required to pass the eligibility criteria applied to every franchise partner.
Brokerage Charges were levied on the clients of Kotak Securities Partners
Let’s discuss the major charges levied on the clients that you, as a partner, sent to Kotak Securities. These brokerage charges are sometimes the biggest stumbling block in the partnership deed.
If the charges are high, fewer clients will likely convert into Kotak Securities customers.
But luckily, the broker has kept its charges fairly reasonable for its clients. Partners can attract clients by giving them discounted offers that Kotak Securities mainly provide to support its franchise partners.
But these charges tend to vary as it depends more on the account type a client chooses for trading.
Kotak Securities Franchise Portal
On this walkthrough of the Kotak Securities Franchise program review, we can’t find an important thing – the franchise portal – that directs joiners on their duties and help them stay updated with the ongoing activities and offers by Kotak Securities.
As a franchise partner, you can also use this portal to get the answer to your multiple queries about servicing clients.
Kotak Securities Authorised Person – Products Offered
It’s time to figure out the types of products Kotak Securities offers. Based on these products, more clients are expected to convert into Kotak securities customers, which will boost your earnings in return.
Simply put, the major assets types offered by Kotak Securities are as follows –
- Equity Trading
- Currency Trading
- Futures and Commodity Trading
- Mutual Funds and IPO Services
Apart from that, the broker also assists traders via its banking services. Such as, you can access insurance services, basket trading, mobile app services, and much more.
List of Top Kotak Securities Partners / Business Partners
Here’s a list of business partners you can watch by joining Kotak Securities partner programs. These include:
- A Franchisee: As a franchisee, you will be required a functional space with decent internet connectivity. Similarly, an initial deposit whopping Rs 3 Lakh is also needed.
- A Coordinator: As a coordinator, you don’t need to submit a large amount, nor is it required to arrange an office or setup. If you have a large client database, reach out to Kotak Securities today.
- An Employee-to-entrepreneur: It is a unique partnership model by Kotak Securities. You can join if you are experienced in the financial sector and have proof to show it.
Kotak Securities Franchise Summary
Thus, Kotak Securities is one strong contender in the sub-broking business with various business models and a strong customer support team.
Kotak Securities gives the option to be a full-fledged sub-broker or remisier or add on equity as a product if one is already dealing in investment products.
Not to miss, the attractive revenue-sharing ratio and the reasonable investments which make the business more tenable and affordable.
Kotak Securities, thus, can surely be a great choice for a sub-broker as it also provides constant Support in all aspects – be it technical, marketing, research, advisory, or any other field.
Lastly, the easy & simple registration process – there would be no harm in connecting with them and evaluating the opportunity. Please fill in the lead form, and we will connect you with them within one business day.
Kotak Securities Authorized Person Program FAQs
Here is the list of FAQs related to the Kotak Securities franchise:
Who is a sub-broker?
A sub-broker is a person who does not undertake trades directly for a client but routes them through a principal broker. It is like acting as an extended arm.
How to become a sub-broker?
Please fill in the lead from here, and the Kotak Securities executive will connect with you in 2 business days.
What are the requirements to become a sub-broker?
A person needs to be/have:
- At least 18 years old
- Higher secondary education
- Ready to make some investment
- The Stock market experience is beneficial
How much does a sub-broker earn?
Earnings depend upon several clients and the value of the trade they undertake. Sub-broker earns a certain fixed percentage, say 30% or 50% or 80%, of the revenue they give to principal brokers.
How does Kotak Securities support sub-brokers?
Kotak Securities provides:
- Training on finding clients
- Training on how to operate the trading platform
- Marketing support
- Training on how to sell products
- Dedicated relationship manager
- Research
- Advisory services
Does Kotak Securities have Sub Broker Model?
The typical sub-broker model, which business investment enthusiasts highly seek, is provided by Kotak Securities. The stock broker presently has a good network of stabilized sub-brokers, making it possible for you to own a successful business.
Do Kotak Securities have multiple Franchise models?
Yes, multiple franchise models are part of the franchise models provided by the stockbroking firm. The first model, the authorized person or the sub-broker business model, is quite popular. The other two models are NetInvest Ace and NetInvest Direct.
What is Kotak Securities Sub Broker Commission?
Willing to avail of the sub-broker model, you can enjoy a good degree of revenue, almost half of what the stock broking house will retain. In this manner, the sub-brokers entitlement is 30% – 50%. This means that the rate is negotiable.
How much does Kotak Securities Franchise Cost?
Willing to invest in the sub-broker model or avail of it, the sub-brokers have to pay a security deposit to the stockbroker. As far as this broker is concerned, the franchise cost related to the sub-broker model is INR 50,000 – 100,000.
Does Kotak Securities have a Partner Program?
The partner program provided by this stock broking company is referred to as NetInvest Direct. The franchisees are responsible for referring clients to the stock broking house in this program. All the other aspects of the client are taken care of by the stockbroker.
What is Kotak Securities Partners Sharing?
Since the partners’ job is only subject to referring clients and not the other aspects, the revenue entitlement is also small. The partners will be provided with a commission of 10% – 20% per job done.
Is Kotak Securities Partner Program Free?
No, an amount of investment or fee is tagged along with the partner program. Here, the business partners or the NetInvest Direct model owners have to provide an investment of Rs.20,000 to Kotak Securities. This is indeed a tiny amount.
Does Kotak Securities provide Training Assistance?
Yes, training assistance is extended by the stock broking house to help their franchisees grow. You will be provided with training in finding clients, trading platforms provided by the broker, products and services provided, and other aspects.
How to Become Kotak Securities Sub Broker?
First, locate the button “Become Sub Broker” provided on this page, probably at the bottom. Click on it and fill up the quick pop-up form which appears. The contact details you provided will reach the broker, and an executive will get in touch with you for further process.
Does Kotak Securities Franchise provide Support?
You can expect Support in the categories of infrastructure and also marketing. They contribute to the process of business development, which is a great perk. Rest assured, you can avail of Support in the field of back-office and technology.
Can I become a multiple sub-broker in Kotak Securities?
If you want to build multiple revenue streams with Kotak Securities, you can do so by joining multiple sub-broker programs at the broker.
You can choose a franchise, Coordinator, or employee-to-entrepreneur business model. But by doing this, you may be exposed to limited benefits.
How do I become a partner with Kotak Securities?
You can become a partner with Kotak Securities; all it takes is passing the criteria while meeting the standard requirements for approval. Simply start with form filling. Get the form from the broker’s official website and apply. But make sure you know the initial investment capital is a whopping Rs 3 lakh.
How much can a Kotak Securities sub-broker earn?
Kotak Securities sub-broker can earn between 50% to 70% of the revenue made by the broker against every client you send. Earning potential is exclusively built by a partner. You can make a big buck shortly if you drive more leads and clients to Kotak Securities.
What is the work of a Kotak Securities sub-broker?
Kotak Securities sub-broker could be a franchise engaged in the role of bringing a client to Kotak Securities and making money on every deposit made by the client.
On the other hand, the coordinator sends the database of clients and people to the broker and gets a commission in return for the favour.
How do I start a Kotak Securities partner program?
You can start the Kotak securities partner program by simply meeting the sub-broker’s requirement and passing the application’s standard criteria. The broker even runs multiple partnership programs, so don’t forget to check them out if you aren’t eligible for a specific one.
How many clients are there in Kotak Securities?
Kotak Securities have thousands of clients who actively use the broking platform to trade and invest in their desired market.
Can I sell delivery shares on the next day in Kotak Securities?
Yes. You can sell 100% delivery shares the next day in Kotak Securities.
Is it mandatory to give PoA to Kotak Securities?
Not at all. Power of Attorney isn’t mandatory for Kotak Securities. The franchise partner itself entirely decides whether they are comfortable with making it available to the broker or not.
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