SBICap Securities Franchise or Sub Broker – Find Revenue Sharing, Security Deposit and more

SBICAP Securities Franchise is the franchise business of the most recognized investment and financial service company SBICAP Securities.

With the name of SBI in the beginning, it already gains enough of importance and reputation and thus becoming franchise holder or SBICAP Securities Sub Broker is not only a lucrative business opportunity but also a matter of pride.

In this article, you will read about the various avenues offered by the stockbroking firm to the franchise holders. Their revenue sharing models, security deposit requirements, eligibility criteria to join the firm, infra requirements and many such details which will intrigue you.

SBICap Securities Sub Broker Highlight
Top Business Model Sub Broker
Initial Investment Required Rs.150,000 – Rs.250,000
Revenue Sharing 55% – 70%
Payout Time 31 Days
SB Code Activation Time 3-4 Weeks

SBICAP Securities Franchise SubBroker


What do you know about SBICap Securities Franchise?

SBICAP, as we all know, is a public organization being under SBI and it has its headquarters in the city of Mumbai. The full-service broker is more than a decade old in this business and it started its stockbroking journey in the year 2006.

The founder of the firm, Smt. Varsha Purandare established the company as a traditional broker with all the investment solutions and products that are demanded in the investment industry by the investors.

The SBICAP Securities Franchise started as one of the main business ideas of the firm and the SBICAP Securities Sub Broker are required to apply for the position. They get their sub-brokers code within 3-4 weeks and the payments are made to them within every 31 days.

SBICap Securities Business Partner Overview
Here is the overview of SBICap Securities Franchise
What type of Company is it? – Public / Private Public
What is the Broker type? Full Service Broker
Where is the Headquarter located? Mumbai, India
Who is the Founder? Smt. Varsha Purandare
What is the year of establishment? 2006
How many days it takes for SB Code Activation? 3-4 Weeks
How many days/weeks it takes for Payout? 31 Days

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What are the various Business Models does SBICap Securities Sub Broker Program provides?

If you are interested to join the SBICAP Securities as a business partner, you can enroll as –

  • Sub Broker / Authorised Person
  • Master Franchise

SBICap Securities Sub Broker / Authorised Person

Under this business model, the selected candidates needs to deposit a security amount and then they are assigned their sub-brokership rights.

The duty or the business profile of the sub-brokers is to build a loyal and strong clientele and make as many sales as possible to them so that the stock-broker generates revenue.

The sub-brokers are required to pitch the broker’s products and services according to the need of the client. The revenue so generated is shared by the broker and the sub-broker in a certain ratio.

SBICap Securities Master Franchise

The SBICAP Securities Franchise is a monopoly kind of a business in a particular area. It is referred to as a monopoly business as there can be only one master franchise in one particular.ar area of any stock-broker.

This gives the complete right and power to the franchise holder to build the clientele for itself. Due to this added advantage over the sub-brokers model, the investment requirement of this business model is also higher.

Other than this the work process remains the same. the revenue share for the franchise holder is also higher than the sub-brokers and we will discuss the same in the later section.

SBICap Securities Franchise Business Models
Know about various Business Models of SBICap Securities
Is the Sub Broker business model available? Yes
Do they provide Referral Program? No
Do they provide Master Franchise Model? Yes
Does this broker provide Partner / Remisier model? No

How does an SBICap Securities Sub Broker Revenue Sharing works?

SBICAP Securities Franchise Revenue Sharing is quite simple and also higher than the sub-brokers commission. The franchise holders get a minimum of 55% of the revenue generated by them with the minimum investment.

The maximum revenue share that can be earned by the franchise holder is 75% which is against the maximum investment as well.

The minimum SBICAP Securities Sub Broker Commission is the same as of the master franchise holder that is 55%. However, the maximum one sub-broker can earn is 70% out of the revenue he or she generates for the firm.

If you see the revenue structure and compare with other popular broker’s revenue model, you will find that the sub-brokers are paid well but the franchise holder’s revenue share is comparatively lesser than other franchise models of peer stockbrokers in the country.

SBICap Securities Sub Broker Revenue Sharing
Find the details of SBICap Securities Sub Broker Commission for all Business Models
What is the revenue sharing for Sub Broker program? 55% – 70%
Do they provide revenue sharing or direct pay for Referral Program? NA
How much is the revenue sharing Master Franchise business? 55% – 75%
How much is the revenue sharing required for Partner / Remisier model? NA

Know about Revenue Sharing of other Sub Broker Franchise

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What is the SBICap Securities Business Partner Security Deposit requirement?

SBICAP Securities Sub Broker Investment is basically the security deposit which he or she needs to keep with the firm in order to get the rights of sub-brokership.

The firm grants sub-brokership rights to the candidates who apply and are eligible when they deposit a minimum of Rs.1.5 lakhs.

This is the minimum deposit that you have to keep with the firm and against the same, you will receive the minimum revenue as mentioned in the above section. The sub-brokers can increase their deposit amount up to 2.5 lakhs and can earn the maximum revenue share as well.

While the Master franchise holders are not earning way too higher than the sub-brokers and also lesser than its peers, their SBICAP Securities Franchise Cost is quite high.

The minimum franchise cost is Rs.400,000 which is higher than most of the franchise models in the industry and the maximum they charge is Rs.10,000,000 which is humongous and it is not justifiable as the maximum share of revenue they give is only 75%.

SBICap Securities Franchise Security Deposit
Check the SBICap Securities Franchise cost requirement for each business model
How much is security deposit required for Sub Broker Program? Rs.150,000 – Rs.250,000
Is there any security deposit required for Referral Program? NA
What is the initial investment required for Master Franchise Model? Rs.400,000 – Rs.1,000,000
What is the deposit required for Partner / Remisier Model? NA

What are the various Offers rolled out by SBICap Securities Authorised Person Program?

There are various SBICAP Securities Sub Broker Offers which you can be benefitted from. Some of them are like 10k initial deposit.

So, if you have less capital and you want to start the business immediately, you can join by depositing only Rs.10,000 and not the whole amount of deposit.

Afterward, you have to fulfill the gap and makeup to the minimum deposit requirement when the business starts generating profit or after a certain period.

Similarly, the SBICAP Securities Franchise Offers includes flexible revenue sharing which is for the for premier sub-brokers and the franchise holders who generate huge business for the broker and thus get higher or different revenue sharing options.

SBICap Securities Sub Broker Offers
Here are the list of SBICap Securities Franchise offers available to the clients
Do they provide Flexible Revenue Sharing offer? Yes
Are they providing Flat Revenue Sharing offer? No
Do they offer Zero Revenue Sharing model with Prepaid payment? No
Do they provide Zero Deposit scheme? No
Are they offering 10k Initial Deposit scheme? Yes

Check out the various offers of other Sub Broker Providers

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What are the various Supports provided to SBICap Securities Business Partner?

SBICAP Securities Franchise Support is recommendable and one of the best in the industry without a doubt. The firm takes care of its sub-brokers and franchise holders really well. The firm trains the sub-brokers regarding the acquisition of clients, product training.

These trainings are provided to better their skills of acquisition and knowledge about the products which is the mandatory requirement for sub-brokers and franchise holders.

Apart from the training, the SBICAP Securities Partner Support provided are Marketing support, trading support, and back-office support.

SBICap Securities Business Partner Support
Here are the various Support SBICap Securities Franchise needs to provide to their clients
Do they provide Acquisition Training to their associates? Yes
Do they provide Training for Dealers of their sub brokers? No
Are they providing Product Training for their business partners? Yes
Do they provide Back-Office Support for their authorised person? Yes
Are they providing Trading Support to their business partners? Yes
Are they sharing Advisory Support with their partners? No
Does the broking house provide Marketing Support to their sub brokers? Yes

Which is the Infrastructure required for SBICap Securities Sub Broker Program?

SBICAP Securities Sub Broker Infra Requirement list down the following –

  • An office with the least area of 200 square feet. You can also understand this criterion as you would like to accommodate your clients well in your office.
  • You need to have properly working telephone lines, internet connection in the office. It is mandatory to remain connected with the clients and the world of investment.
  • The trading terminals are mandatory whether you take sub-brokership right or franchise rights.
  • The employee strength of the office needs to be at least three.

Looking at the SBICAP Securities Partner Requirement for the infrastructure, it seems the firm prioritize this requirement well and they are strict about the same as they got to maintain a reputation for themselves as SBICAP.

However, there are no research services mandated by them and the other requirements are no too much they have asked for.

SBICap Securities Partner Infrastructure Requirement
Find the various Infra required to take up SBICap Securities Franchise
What is the Employee Strength needed to start this franchise? Minimum 3
Do the Sub Broker needs to provide Trading Terminals? Yes
Is the Internet Connection mandatory to take up franchise? Yes
Are Telephone Lines mandatory for Business Partners? Yes
Is mandatory to provide Research Services by Sub Broker? No
How much is the size of Office Area required to become a Sub Broker? Minimum 200 Sq Ft

Find out the basic requirements of other Stock Broking Franchise

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What is the Eligibility Criteria to Become SBICAP Securities Partner?

SBICAP Securities Franchise Eligibility for the sub-broker and the franchise holder are quite simple but you need to have these badges or else you won’t be able to get through their screening.

  • You must have read up till 10+2 from any recognized school or education broad in the country.
  • Your financial product knowledge needs to be really good in order to become the sub-broker or franchise owner of SBICAP.
  • NISM certificate for sub-brokers and NCFM for dealers are prerequisites as mandated by the SEBI as well
  • Finally, the most important criteria are the experience. You need to have prior experience in trading, sub-broking or broking in the stock market and investments industry as a whole.
  • The documents you require for the eligibility purpose are –
    • AADHAAR Card
    • PAN Card
    • GST Registration Certificates
    • Address Proof
    • Education Degree certificates
    • Voter Id
    • SEBI Registration Certificates
    • NISM or NCFM Certificates

What is the brokerage charges levied to the Clients of SBICap Securities Partners?

SBICAP Securities Authorised Person Charges to the clients the brokerage as per the broker’s brokerage rates available in the market.

As you can check above in the table, the rates are quite high for each of the segments. Whether it is intraday or the options, the brokerage charges of this firm are quite high.

However, the SBICAP Securities Partner Charges can be justified on the grounds that it has the trust of SBI as its parent company. So, you get the best services and most importantly the highest level of security of your accounts.

SBICap Securities Sub Broker – Brokerage Charges to Clients
Here are the brokerage charges levied by SBICap Securities Sub Broker to their clients
What are Equity Intraday charges? 0.05%
How much are Equity Delivery charges? 0.50%
How much is the charge levied on Equity Options? Rs.100 per Lot
How much are the Currency Options charges? Rs.100 per Lot
What are Equity Futures charges? 0.05%
What are the charges levied on Currency Futures? 0.05%
What are the charges levied on Commodity Trading? 0.05%

What is the Account Opening Charges Levied to the clients of SBICap Securities Sub Broker?

The SBICAP Securities Sub Broker Charges for account opening of the clients is Rs.699 at present. The firm charges on the higher side as we can see from the table itself for the Demat account opening. However, it charges no money for the trading account and its annual maintenance.

The Demat maintenance can also be free if your clients fall into that offer or else they need to pay Rs.400 every year for the same.

The margin money that your client needs to keep is Rs.10,000 as the minimum which is reasonable as per the market.

SBICap Securities Franchise – Account Opening Charges to Clients
Here are the account opening charges levied by SBICap Securities Franchise to their clients
What are the Account Opening Charges? Rs.699 per Annum
What is the Margin Money required? Rs.10,000
What is the charge for Demat AMC? Free or Rs.400 per Annum
how much are Trading AMC charges? Zero
How much is the Transaction Charges levied? 0.00%

What is the Customer Ratings of SBICap Securities Authorised Person Program?

The SBICAP Securities Sub Broker Review suggests that the offers they get are not that satisfactory as the rating is only 2.7.

The SBICAP Securities Franchise Ratings from the clients suggest the overall ratings to be 2.8 which is also poor if we compare its peers. However, the customer experience has been rated at 3.4 out of 5 which is great.

SBICap Securities Franchise Customer Ratings
Find Client Ratings & Reviews against multiple parameters for SBICap Securities
According to Revenue Sharing Model of the Franchisor 2.9 / 5
Ratings as per Security Deposit provided by the company 2.8 / 5
As per Experience in the Sub Broker Business 3.4 / 5
As per Offers provided by the Broking Franchise 2.7 / 5
Ratings as per Mobile Trading App & Trading Platforms 2.7 / 5
Overall Ratings of the Sub Broker Franchise 2.8 / 5
Star Ratings ★★★☆☆

SBICap Securities Franchise Conclusion

The SBICAP Securities Franchise is without a doubt one of the most trustworthy franchise businesses in the country. However, the higher investment requirements and the lower revenue sharing especially for the franchise holders upset the sentiments.

The SBICAP Securities Sub Brokers are more or less paid well and their investment requirements are also at par with the market.


Get to know about other Sub Brokers in India

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