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IDBI Direct Franchise / Partner / Sub Broker / Authorised Person Review

IDBI Direct Franchise is a fully own subsidiary of the nationalized Bank IDBI in India. The firm is well-known by the name IDBI Capital and being a nationalized one, it has immense popularity both amongst the clients – investors, traders, and the business partners.

The firm has been in function for more than 25 years now and comes up with something new to facilitate the trading experience of the investors.

This article below is going to enumerate all the facts and figures related to IDBI Direct Sub Broker Program. The article will analyze the business models followed by the firm, the revenue sharing structure and all other intricate details related to this.


IDBI Direct Franchise Customer Ratings & Review

IDBI Direct Franchise Customer Ratings & Review


About IDBI Direct Franchise

IDBI Direct or IDBI Capital is a subsidiary of IDBI Bank which is a nationalized bank – it is a wholly owned subsidiary. The firm is thus listed on NSE and BSE both and is a public organization.

IDBI Direct is a full-service broker with one of the widest range of investment services and products under its belt.

The firms headquarter is situated in the Financial capital of the country – Mumbai, Maharashtra. The firm was established in the year 1993 by Mr. Rakesh Sharma.


Become an Authorized Person of IDBI Direct

Fill Your Details Here
  1. Become Sub BrokerOpen Demat Account


IDBI Direct Franchise is divided into two types:

There is only one business model which the firm follows and that is –

  • Sub Broker / Authorised Person

IDBI Direct Sub Broker or Authorized Person

IDBI Direct sub-brokership model is simple which involves the sub-brokers as the middlemen between the clients and the firm. The sub-brokers are entitled to receive revenue shares on successful selling of products and services of the firm.

The firm provides a part of the revenue generated by the sub-broker to them. The sub-brokers need to build their own customer base in order to sell the products and services. The firm takes 31 days to generate the code of the sub-brokers.

Benefits of IDBI Direct Sub Broker or Authorized Person

  • First and foremost benefit of being a sub-broker of IDBI Direct is that you are working with a government subsidiary which makes you feel much more relieved about your payments and everything.
  • The payments are made within only 22 days which is one of the lowest time taken by any broker to pay the sub-brokers.
  • The firm has an array of services and products for every kind of clients and investors. The sub-brokers can sell all of them and this gives a huge ground to the sub-brokers to pitch to the clients and generate a lot of revenue for the firm as well as for themselves.
  • The firm pays well to the sub-broker and one can earn up to 70% of the revenue as well under certain conditions.
  • The security deposit range is too wide and you can start with a minimum deposit and then with time you can increase the deposit. This enables many people with low capital to start off and then accumulate the capital and deposit.

IDBI Direct Sub Broker Commission or Revenue Sharing Model

While it is great to see a wide range for the security deposit column, but the minimum security deposit amount is the average in the market where the corresponding revenue share (minimum share of revenue) is at 40% which is one of the lowest in the market.

For the maximum security deposit of Rs. 300000, the revenue share of 70% is also low as there are many share brokers who offer the same at half of the security deposit.

So, IDBI Direct has a drawback here but if compare IDBI Direct as a nationalized bank’s subsidiary with so many investment verticals with other private peers of it, then this little difference in the figures won’t bother you must. Rather, even if the minimum share of revenue is at 40% but to work with a firm like IDBI, it is worth the amount.

Check this table below to understand commission sharing better:

Revenue SharingClients ShareIDBI Direct’s Share
Sub Broker40% – 70%30% – 60%

Start your Broking Business with IDBI Direct

Fill Your Details Here
  1. Become Sub BrokerOpen Demat Account


IDBI Direct Franchise Cost or Security Deposit

The security deposit asked by IDBI Direct starts from a normal Rs.50,000. However, the maximum deposit you can keep can be up to Rs.300,000. The range is too wide for any sub-brokers business model.

The security deposit is the only deciding factor of the revenue share and thus this wide range of security deposit affects the revenue sharing structure as well which is discussed below.

Below table gives a better perspective of IDBI Direct deposit amount:

Security Deposit
Sub BrokerRs.50000 – Rs.300,000

These Sub Broker Franchise  ask for low Security Deposits:

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IDBI Direct Franchise Infrastructure Set-up Cost

The infrastructure requirement for becoming the sub-broker of IDBI Direct are –

  • You have to have an office which is at least 300 square feet long (area). It must have enough room for the clients and employees to be comfortable and work.
  • The minimum number of employees cannot be less than three – they must be working full time.
  • The office needs to have an internet There must be a high-speed broadband connection for smooth work and connection.
  • The telephone lines in the office need to be there and must be properly in working condition.
  • The office needs to have trading terminals. It is mandatory for sub-brokers of IDBI Direct to have the terminals, so that any clients if wishes to trade from the sub-brokers office, can do trading from there.
  • The research services are not required in the sub-brokers office. So, you may or may not have this service, it is dependent on your choice.

IDBI Direct Broking Franchise Offers

The office provided by IDBI Direct to the sub-brokers are –

  • An initial deposit of Rs. 10000 can be enough to start with the business. Within a stipulated time after starting the sub-brokership business, you can increase the deposit amount.
  • The firm offers flexibility in revenue sharing with the sub-brokers.

Find more eligibility criteria of other stock broking franchise:

Just Trade FranchiseKarvy FranchiseIFCI FranchiseReligare Securities Franchise
Geojit FranchiseEdelweiss FranchiseNarnolia FranchiseAnand Rathi Franchise

IDBI Direct Franchise Eligibility Criteria

IDBI Direct being a nationalized firm has various eligibility criteria which you have to meet in order to get the right of sub-brokership.

  • The interested sub-brokers need to have at least 10+2 certificate. This means they must have done their 10+2 level from some recognized board of education. This is necessary because there is a lot of legal and official work involved in the sub-brokership business, which requires basic education and understanding.
  • The NISM certificate is a mandatory requirement for anyone in the country who wants to become a sub-broker of the dealer in the stock market. So, you have to clear the NISM certification examination before or during the process of applying for the business position with IDBI Direct.
  • The firm requires at least 2-3 years of experience in the market before allowing you the right of IDBI Direct sub-brokership. You need to have at least spent a good few years trading, investing and dealing in the stock In this market, the experience matters the most and thus it is one of the vital criteria to be met in order to get the sub-brokership rights.
  • The financial products knowledge is also necessarily required for the sub-brokers. You can have the basic knowledge of the products, the firm provides product training, they will make you understand their products and services once you get selected. But before, that you need to showcase your basic understanding of the products.

How to become IDBI Direct Sub Broker or Authorized Person?

The firm offers sub-brokership in 31 days once your application gets approved and verified and to make the application you have to –

  1. Read through this article and at the end, you will find a button, click on that it will take you to another page where you will find a form.
  2. Fill the form duly – make everything proper and check twice if the information is correct or not before submitting.
  3. Once submitted the form, you will get redirected to another page where you have to upload all the document’s scan copy.
  4. If you are eligible, it will be confirmed then and there on the website.
  5. You will receive a call from the IDBI Direct executives for the further verification process.
  6. Once the verification process is over, the code will be generated.

Documents required to become IDBI Direct Authorised Person

List of documents required to start IDBI Direct Sub broker program:

  • PAN
  • AADHAAR
  • NISM Certificates
  • GST Registration Certificates
  • SEBI Certificate of Registration
  • Address Proof
  • Investment Proof
  • Educational Details with certificates
  • Other

Check the list of Stock Market Franchise with quick Sub Broker tag generation process:

SMC FranchiseIIFL FranchiseIDBI Direct FranchiseVentura Securities Franchise
Just Trade FranchiseNirmal Bang FranchiseSykes & Ray FranchiseSki Capital Franchise


Why Partner with IDBI Direct?

  • Nationalized Bank’s Subsidiary – Reliable
  • Transparent and have high business ethics
  • One of the widest range of products and services
  • Good revenue share
  • Wide range for the security deposit amount
  • Provide various training and support for the development of the sub-brokers
  • Variety of offers

IDBI Direct Franchise Conclusion

IDBI Direct Franchise can be a great choice of stockbroking firm for you if you want trust, complete clarity in the business.

The firm is here for many years and has created a niche of its own and it has a wide network of financial professionals working with it.


Check the list of Stock Market Franchise with quick Sub Broker tag generation process:

SMC FranchiseIIFL FranchiseIDBI Direct FranchiseVentura Securities Franchise
Just Trade FranchiseNirmal Bang FranchiseSykes & Ray FranchiseSki Capital Franchise

Start your Broking Business with IDBI Direct Franchise Program

Fill Your Details Here
  1. Become Sub BrokerOpen Demat Account


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