GET IN TOUCH WITH US! CALL US AT: 1-800-22-7500 FOR MORE INFORMATION MAIL US AT [email protected]Brand:A leading retail stock broking brand with top of the mind recall in the stock investing population across India. We are committed to increase the brand awareness across all medium and through multiple PR initiatives. Technology: A customer-centric focus on technology has helped us stay ahead with pioneering product launches like TradeTiger. A fully automated advanced risk monitoring system supported by an integrated back office ensure smooth transaction for customers and hassle-free business operations for our business partners.
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Brand:A leading retail stock broking brand with top of the mind recall in the stock investing population across India. We are committed to increase the brand awareness across all medium and through multiple PR initiatives.
Technology: A customer-centric focus on technology has helped us stay ahead with pioneering product launches like TradeTiger. A fully automated advanced risk monitoring system supported by an integrated back office ensure smooth transaction for customers and hassle-free business operations for our business partners.
We offer a complete range of investment products that covers Equities, F&O, Commodities, Mutual Fund, IPOs, through our online platform. This will enable you to offer a 'One Stop Solution' for all stock market needs of your customers. Click to see our entire product range >>
Robust software: Online DP access, Risk Management, Customer Information and Back office support, along with state of the art online knowledge sharing tools, maximize information availability at your fingertips.
Research: In an information-centric business like ours, knowledge makes all the difference. We deliver quality and in depth research through our Central Research team of analysts, covering fundamental and technical research, derivatives, mutual funds and IPO.
Training: Comprehensive three levels of training to the business partners at the nearest branch, at their own outlet and at the head office. Ongoing training support for the business partners as well as the employees is just a call away.
Business Support: Sharing business development and business generation ideas along with planning client level events for your outlet. Better local level visibility and higher leverage on the brand
Advisory Support: Access to Sharekhan research advice in real-time on Sharekhan Trade Tiger terminal. Dedicated Advisory relationship managers to help you chart a business plan and help you in your day-to-day business as well as owning up the clients portfolios
Best business practices: With customer interest as the core value, best practices and directives from regulators help in building greater trust and transparency.
Customized Retail Design: Expert Assistance to design your office premises synonymous with our corporate identity
Acquire more customerswith our Marketing Efforts:
Say
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Benefit from the Big Picture: Leverage Sharekhan’s efforts in National-level advertising and presence in mass media
Presence in your Region: Customized marketing and business development effort as per your need and wants at the regional level
Sharekhan Ltd.: BSE Cash-INB011073351; F&O-INF011073351; CD - INE011073351; NSE – INB/INF231073330; CD -
5paisa.com. However, the fixed brokerage of Reliance Money is higher than 5paisa.com's brokerage for
investments less than Rs 2 lakh.
For onliners
Brokerage is a recurring cost. Higher trading volume slabs attract lower brokerage. You'll also have to pay an annual maintenance charge.
Some brokers insist on a minimum transaction volume and charge their lowest brokerage for it. Opt for the same depository and trading body to avoid delays in settlement of shares and cash. Margin trading could attract higher brokerage than regular transactions. Online brokers provide regular updates on market favourites. Pick the online broker with the maximum number of collaborating banks. Check out the website's speed and reliability, ease of fund transfer, and the e-broker's customer
service quality. The broker's infrastructure should be able to handle large trade volumes.
Account opening and maintenance costs. In order to trade, an investor needs to open two accounts with
the brokerage firm - a demat account to keep the shares and a trading account to trade.
If cost is an issue, you may select Almondz, for instance, since it charges only Rs 400 for opening an
account (see A Comparative Look at Online Brokers), but do not hold a demat account with one company
and a trading account with another since it delays the settlement of shares and cash.
Another fixed cost is the annual maintenance charge. While some companies such as Kotak Securities have
a high maintenance charge, Almondz, Religare, Reliance Money, 5paisa.com and IndiaBulls [ Get Quote ]
charge nothing at all.
Minimum trade requirements. Some online brokers insist on a minimum transaction volume for which they
charge their lowest brokerage. For instance, ICICIDirect.com has set its minimum transaction at Rs 500 and
charges a brokerage of Rs 25 on it. Geojit Financial Services [ Get Quote ] has not fixed a minimum
transaction amount, but the minimum brokerage is Rs 20.
Margin trading. This is available in the online domain and involves paying only a proportion of the trade
value upfront. Such trades could attract higher brokerage than the regular transactions.
Mostly traders, who go for intraday transactions, go for this form of trading. Investors typically invest for
longer periods and margin trading is not suitable for them as brokers charge huge interest on the value of
This does not mean that they are not charged brokerage, but alludes to a fixed brokerage fee irrespective of
turnover or up to a certain turnover for a period of time: higher the investment, lower the brokerage.
For instance, Reliance [ Get Quote ] Money charges Rs 500 for delivery-based volumes up to Rs 10 lakh (Rs
1 million) for two months. If one trades with 5paisa.com for the same volume, the brokerage amount will be
Rs 2,500 (at the rate of 0.25 per cent brokerage). So, at this volume, Reliance Money scores over
5paisa.com. However, the fixed brokerage of Reliance Money is higher than 5paisa.com's brokerage for
investments less than Rs 2 lakh.
For onliners
Brokerage is a recurring cost. Higher trading volume slabs attract lower brokerage. You'll also have to pay an annual maintenance charge.
Some brokers insist on a minimum transaction volume and charge their lowest brokerage for it. Opt for the same depository and trading body to avoid delays in settlement of shares and cash. Margin trading could attract higher brokerage than regular transactions. Online brokers provide regular updates on market favourites. Pick the online broker with the maximum number of collaborating banks. Check out the website's speed and reliability, ease of fund transfer, and the e-broker's customer
service quality. The broker's infrastructure should be able to handle large trade volumes.
Account opening and maintenance costs. In order to trade, an investor needs to open two accounts with
the brokerage firm - a demat account to keep the shares and a trading account to trade.
If cost is an issue, you may select Almondz, for instance, since it charges only Rs 400 for opening an
account (see A Comparative Look at Online Brokers), but do not hold a demat account with one company
and a trading account with another since it delays the settlement of shares and cash.
Another fixed cost is the annual maintenance charge. While some companies such as Kotak Securities have
a high maintenance charge, Almondz, Religare, Reliance Money, 5paisa.com and IndiaBulls [ Get Quote ]
charge nothing at all.
Minimum trade requirements. Some online brokers insist on a minimum transaction volume for which they
charge their lowest brokerage. For instance, ICICIDirect.com has set its minimum transaction at Rs 500 and
charges a brokerage of Rs 25 on it. Geojit Financial Services [ Get Quote ] has not fixed a minimum
transaction amount, but the minimum brokerage is Rs 20.
Margin trading. This is available in the online domain and involves paying only a proportion of the trade
value upfront. Such trades could attract higher brokerage than the regular transactions.
Mostly traders, who go for intraday transactions, go for this form of trading. Investors typically invest for
longer periods and margin trading is not suitable for them as brokers charge huge interest on the value of
This does not mean that they are not charged brokerage, but alludes to a fixed brokerage fee irrespective of
turnover or up to a certain turnover for a period of time: higher the investment, lower the brokerage.
For instance, Reliance [ Get Quote ] Money charges Rs 500 for delivery-based volumes up to Rs 10 lakh (Rs
1 million) for two months. If one trades with 5paisa.com for the same volume, the brokerage amount will be
Rs 2,500 (at the rate of 0.25 per cent brokerage). So, at this volume, Reliance Money scores over
5paisa.com. However, the fixed brokerage of Reliance Money is higher than 5paisa.com's brokerage for
investments less than Rs 2 lakh.
For onliners
Brokerage is a recurring cost. Higher trading volume slabs attract lower brokerage. You'll also have to pay an annual maintenance charge.
Some brokers insist on a minimum transaction volume and charge their lowest brokerage for it. Opt for the same depository and trading body to avoid delays in settlement of shares and cash. Margin trading could attract higher brokerage than regular transactions. Online brokers provide regular updates on market favourites. Pick the online broker with the maximum number of collaborating banks. Check out the website's speed and reliability, ease of fund transfer, and the e-broker's customer
service quality. The broker's infrastructure should be able to handle large trade volumes.
Account opening and maintenance costs. In order to trade, an investor needs to open two accounts with
the brokerage firm - a demat account to keep the shares and a trading account to trade.
If cost is an issue, you may select Almondz, for instance, since it charges only Rs 400 for opening an
account (see A Comparative Look at Online Brokers), but do not hold a demat account with one company
and a trading account with another since it delays the settlement of shares and cash.
Another fixed cost is the annual maintenance charge. While some companies such as Kotak Securities have
a high maintenance charge, Almondz, Religare, Reliance Money, 5paisa.com and IndiaBulls [ Get Quote ]
charge nothing at all.
Minimum trade requirements. Some online brokers insist on a minimum transaction volume for which they
charge their lowest brokerage. For instance, ICICIDirect.com has set its minimum transaction at Rs 500 and
charges a brokerage of Rs 25 on it. Geojit Financial Services [ Get Quote ] has not fixed a minimum
transaction amount, but the minimum brokerage is Rs 20.
Margin trading. This is available in the online domain and involves paying only a proportion of the trade
value upfront. Such trades could attract higher brokerage than the regular transactions.
Mostly traders, who go for intraday transactions, go for this form of trading. Investors typically invest for
longer periods and margin trading is not suitable for them as brokers charge huge interest on the value of
broker protects the investor from default risk, fraud and other financial risks. Several institutional brokers have an impeccable track record. Some of
these are,’ ICICI Securities’,’ HDFC Securities’, ‘Motilal Oswal Securities’ etc.
2. Flexibility: The stock exchanges follow the T+2 settlement schedule. This means that settlement occurs two days after the transaction.
Hence, if you decide to buy shares on a given day, you must submit the cheque to the broker well in advance, so that he can deposit the amount with
the exchange. Some of the brokers do provide flexibility in terms of payments made, while others ask for an upfront payment of funds. Brokers also
allow margin based trades and square off of positions in intra-day transactions. Ideally, you must check with the broker as to what are the facilities
available.
3. Broking rates: As per SEBI guidelines, a broker can charge a maximum of 2.5 per cent of the consideration as brokerage. The standard rate
charged by most, ranges from 0.20 to 0.75 per cent for delivery based and .001 to .05 for intraday. Brokerage inflates the cost of purchase and
reduces the realization from sale of securities. You must therefore check the rates charged. Sometimes, a minimum transaction charge is attached
irrespective of the value. Brokers also provide competitive rates to the high value investors and to regular traders.
4. Different modes of transactions: An investor can buy or sell securities, either by phone, by giving an order through the internet or by making
personal visits. The broker identifies transaction done on telephone by an alphanumeric code allocated to the investor. Web based transactions are
conducted by using a user id and password on the broker’s website. This is basically a unique identification for each client and also a security
mechanism.
Service Quality: Service quality of the broker is another important determinant. For instance, how fast a broker can transact for his clients reflects
his service standards. Since markets operate on a real time basis, at times, small delays result in financial losses. Another aspect of quality is transfer
of security by the broker to the client account, settlement of funds, timely dispatch of contract notes, providing transaction ledger to the clients etc.
Selecting a depository participant (DP): Gone are the days when shares were bought and sold in physical form. In India, securities are, today,
transacted in electronic form, which is made possible by the process of dematerialisation (demat). A demat account is where your securities are kept
in electronic form. Just like a bank account is opened with a bank, a demat account is opened with a Depository Participant (DP). DPs are
authorised by law in India to open demat accounts and are agents of the depository, acting as intermediaries between you and the depository. The
DP set up works on a book entry form where shares are debited and credited as and when clients buy or sell. A buy transaction results in credit entry
while a sell transaction leads to a debit entry.
There are more than 250 DPs registered with two depositories in India, which are NSDL (National Securities Depository Limited)
(Central Depository Services Limited). Once again, due to this high number, you must filter the right choice before you open a demat account.
There are several kinds of DPs operating in the market. They can be broadly classified as follows:
1. Banks working as DPs such as HDFC Bank, ICICI Bank, UTI Bank and several PSU Banks.
2. Custodians such as Stock Holding Corporation of India Ltd., Infrastructure Leasing and Financial Services (IL & FS)
3. Brokers acting as DPs like ShareKhan, Motilal Oswal, Anand Rathi etc.
4. Others would include Indiabulls and Foreign Banks
How to select a DP of your choice: You need to keep the following in mind while selecting a DP:
a. Reputation: Three leading DPs in India in terms of number of demat accounts are ICICI Bank, Stock Holding Corporation of India Ltd. and
HDFC Bank. Though there is no method available to grade DPs, certain past events give a fair idea of their standing. When SEBI carried out
inspections in the IPO scam in 2006, some DPs were found to be following unfair practices and consequently penalties were levied on them. Such
events may be used as benchmarks for reputation. Also, you should check whether the DP follows the guidelines imposed by the depository while
opening your demat account. The web page of NSDL and CDSL provide FAQs for investors in this regard.
b. Cost: With effect from 1st April 2007, SEBI has made it mandatory for DPs to display the charges that they levy on investors on the SEBI
website. This is updated twice a year so that you can analyse the charges of different DPs. Some standard charges are as follows:
1. Annual Maintenance Charges
2. Charges for debit in demat account
3. Demat and remat charges
4. Charges for pledge of securities
It is important for you to know that now DPs are not allowed to charge for opening accounts, crediting demat accounts and transfer of
accounts from one DP to another, if the account is in the same name. Further, some broker DPs, don’t charge separately for demat accounts.
However they club these charges along with brokerage. You must therefore clarify with broker DPs regarding the charges.
c. Accessibility: Since you get only two days to transfer shares from your account to the broker’s account in case of a sale, you must check
whether the DP is easily accessible or not. Investors who have opened demat accounts with DPs, who are registered with NSDL and CDSL for
electronic transfer of shares, can avail of this facility. This means that you need not visit the DP’s office personally to submit the delivery
instruction slip meant to transfer shares from your account to the broker’s account. It would therefore be better if you avoid those DPs who do not
offer electronic transfer facility and are not well spread geographically.
Need for a banking account: Transactions involving shares require movement of money in and out of your account. Hence, bank accounts are
mandatory along with broking and demat accounts. You may use your savings account for purchase and sale of shares by notifying the bank
account details in your demat and broking account.
Three-in-One demat account: Some brokers and banks offer a ’Three In One’ demat account, where you open a demat, broking and bank account
with the same entity, in case of a bank DP. Elsewhere, if the DP is a broker, an existing bank account can be used for the purpose of a ’ Three In
One’ account. This ensures easy transfer of funds. However, in some cases the brokers insist on opening a bank account with a particular bank as
they often have tie ups with that bank. These accounts or tie ups are beneficial as they provide a one stop solution to you, thereby saving your time
and unnecessary paper work. This has also proven to be cost effective. E-trading platforms are also available in most cases where, ‘Three in One
account’ facilities are available. This facility is majorly given by banks serving as DP and Broker
Requirements for opening a demat account: The following documents are required to open a demat account:
a. Proof of residence (NSDL and CDSL provide a list of acceptable documents as POR which include electricity bill, phone bill, ration card,
driving licence etc.)
b. Proof of identity (PAN card is mandatory)
c. Bank account details (A cancelled cheque for capturing MICR)
d. Nominee details
Bank account details must get properly captured in a demat account as benefits like dividend and interest are directly credited in the bank account. Also, when
you make an application for an IPO, you receive a direct credit in your account to the extent of shares not allotted.
Requirements for opening a broking account: The following documents are essential to open a broking account:
a. Proof of residence (A list of acceptable documents provided)
b. Proof of identity (Since PAN is must, it is used as POI)
c. Bank account details (cancelled cheque for direct debits and credits)
What will happen if my DP goes bankrupt or stops operation?
In a rare event of your DP going bankrupt or closing its operations, the interests of the investors will be fully protected. In such situation, the
investor will be given an option of either transferring the securities to a new DP or rematerialize the securities.....
Online Broker Selection
Starting investments: Once you are through with this paper work, you are ready to start investing. Buying and selling shares on the market occurs
from 9: 00 a.m. to 3:30 p.m. on all working days. Stock exchanges don’t work on Saturdays, Sundays and notified holidays.
(c) www.theequitymarkets.com . Designed, maintained and owned by Alok S Agrawal
http://www.theequitymarkets.com/broker_comparison.htmBrokerage firms are the business entities that deal with stock trading. India, with an increasing capital
market and a growing number of investors, has a number of brokerage firms. In Indian retail brokerage
industry, the brokerage firms primarily work as agents for buying and selling of securities like shares, stocks
and other financial instruments and earn commission for each of the transactions. There are plenty of
brokerage firms in India. Let's have a look at the top 10 brokerage firms in India.
Before talking anything about top brokerage firmsin India, let's have a glance at the Indian retail
brokerage market, which is going through a wonderful phase with high growth rate. The total trading volume
of the Indian brokerage companies stood at US$ 1239.1 billion in the year 2004, which increased to US$
1492.1 billion in 2005. It is further expected to reach US$ 6535.7 billion by the year 2015.
List of Top 10 Brokerage Firms in India
Among all the Indian brokerage companies, the top 10 Brokerage Firms in India can be listed as below:
Top 10 Top Automobile Top Aviation Top 10 Financial Services Top Auto Finance Top Housing Finance Top Microfinance Top Personal Loan Finance Top Asset Management Top 10 Banking Major Financial Top Insurance India Insurance Mortgage Mortgage Insurance Infrastructure Real Estate Petrochemical Software Telecom
The Indian broking industry is one of the oldest trading industries that has been around even before the establishment of the BSE in 1875. Despite passing through a number of changes in the post liberalisation period, the industry has found its way towards sustainable growth. With the purpose of gaining a deeper understanding about the role of the Indian stock broking industry in the country’s economy, we present in this section some of the industry insights gleaned from analysis of data received through primary research.
For the broking industry, we started with an initial database of over 1,800 broking firms that were contacted, from which 464 responses were received. The list was further short listed based on the number of terminals and the top 210 were selected for profiling. 394 responses, that provided more than 85% of the information sought have been included for this analysis presented here as insights. All the data for the study was collected through responses received directly from the broking firms. The insights have been arrived at through an analysis on various parameters, pertinent to the equity broking industry, such as region, terminal, market, branches, sub brokers, products and growth areas.
Some key characteristics of the sample 394 firms are:
On the basis of geographical concentration, the West region has the maximum representation of 52%. Around 24% firms are located in the North, 13% in the South and 10% in the East
3% firms started broking operations before 1950, 65% between 1950-1995 and 32% post1995
On the basis of terminals, 40% are located at Mumbai, 12% in Delhi, 8% in Ahmedabad, 7% in Kolkata, 4% in Chennai and 29% are from other cities
From this study, we find that almost 36% firms trade in cash and derivatives and 27% are into cash markets alone. Around 20% trade in cash, derivatives and commodities
In the cash market, around 34% firms trade at NSE, 14% at BSE and 52% trade at both exchanges. In the derivative segment, 48% trade at NSE, 7% at BSE and 45% at both, whereas in the debt market, 31% trade at NSE, 26% at BSE and 43% at both exchanges
Majority of branches are located in the North, i.e. around 40%. West has 31%, 24% are located in South and 5% in East
In terms of sub-brokers, around 55% are located in the South, 29% in West, 11% in North and 4% in East
Trading, IPOs and Mututal Funds are the top three products offered with 90% firms offering trading, 67% IPOs and 53% firms offering mutual fund transactions
In terms of various areas of growth, 84% firms have expressed interest in expanding their institutional clients, 66% firms intend to increase FII clients and 43% are interested in setting up JV in India and abroad
In terms of IT penetration, 62% firms have provided their website and around 94% firms have email facility
Terminals
Almost 52% of the terminals in the sample are based in the Western region of India, followed by 25% in the North, 13% in the South and 10% in the East. Mumbai has got the maximum representation from the West, Chennai from the South, New Delhi from the North and Kolkata from the East.
Mumbai also has got the maximum representation in having the highest number of terminals. 40% terminals are located in Mumbai while 12% are from Delhi, 8% from Ahmedabad, 7% from Kolkata, 4% from Chennai and 29% are from other cities in India.
Branches & Sub-Brokers
The maximum concentration of branches is in the North, with as many as 40% of all branches located there, followed by the Western region, with 31% branches. Around 24% branches are located in the South and East constitutes for 5% of the total branches of the total sample.
In case of sub-brokers, almost 55% of them are based in the South. West and North follow, with 30% and 11% sub-brokers respectively, whereas East has around 4% of total sub-brokers.
Financial Markets
The financial markets have been classified as cash market, derivatives market, debt market and commodities market. Cash market, also known as spot market, is the most sought after amongst investors. Majority of the sample broking firms are dealing in the cash market, followed by derivative and commodities. 27% firms are dealing only in the cash market, whereas 35% are into cash and derivatives. Almost 20% firms trade in cash, derivatives and commodities market. Firms that are into cash, derivatives and debt are 7%. On the other hand, firms into cash and
commodities are 3%, cash & debt market and commodities alone are 2%. 4% firms trade in all the markets.
In the cash market, around 34% firms trade at NSE, 14% at BSE and 52% trade at both exchanges. In the equity derivative market, 48% of the sampled broking houses are members of NSE and 7% trade at BSE, while 45% of the sample operate in both stock exchanges. Around 43% of the broking houses operating in the debt market, trade at both exchanges with 31% and 26% firms uniquely at NSE and BSE respectively.
Of the brokers operating in the commodities market, 57% firms operate at NCDEX and MCX. Around 20% and 21% firms are solely in NCDEX and MCX respectively, whereas 2% firms trade in NCDEX, MCX and NMCE.
Products
The survey also revealed that in the past couple of years, apart from trading, the firms have started offering various investment related value added services. The sustained growth of the economy in the past couple of years has resulted in broking firms offering many diversified services related to IPOs, mutual funds, company research etc. However, the core trading activity is still the predominant form of business, forming 90% of the firms in the sample. 67% firms are engaged in offering IPO related services. The broking industry seems to have capitalised on the growth of the mutual fund industry, which was pegged at 40% in 2006. More than 50% of the sample broking houses deal in mutual fund investment services. The average growth in assets under management in the last two years is almost 48%. Company research is another lucrative area where the broking firms offer their services; more than 33% of the firms are engaged in providing company research services. Additionally, a host of other value added services such as fundamental and technical analysis, investment banking, arbitrage etc are offered by the firms at different levels.
Of the total sample of broking houses providing trading services, 52% are based in the West, followed by 25% from North, 13% from South and 10% from the East. Around 50% of the firms offering IPO related services are based in the West as compared to 27% in North, 13% in South and 10% in East. In providing mutual funds services, the Western region was dominant amounting to 49% followed by 27% from North; The South and the East are almost at par with 13% and 11% respectively.
Future Plans
68% of the firms from the sample have envisaged strategies for future growth. With the middle class Indian investor as well as foreign investor willing to invest in the stock market, majority of the firms preferred expansion of institutional and the Foreign Institutional Investor clients in their areas of growth. Around 84% have shown interest in expanding their institutional client base. Nearly 51% of such firms are located in the West, 25% in North, 15% are from South and 9% from East. Since the past couple of years, India, along with Korea and Taiwan, has been one of the preferred destinations for the FIIs. With corporate restructuring, rising market capitalisation and sectoral friendly policies helping the FIIs, more than two thirds of the firms are interested in increasing their FII client base. Amongst these firms, West again has maximum representation of 53%, followed by North with 22%. South has 15% firms and East makes up for 9%.