Kotak Securities Franchise opened up its venture in 2011 & is one of the major broking franchise house in India.
About Kotak Securities Franchise/Sub Broker/Partner
If the same is to be believed, then Kotak Securities Franchise can be said one of the first few players who recognized the business and revenue potential and appreciated the significance of having local retail outlets and addressed the same.
Having been long in the market, it has certainly understood the varied requirements and expectations of a Kotak securities sub broker and hence it offers a variety of business association models. Though the basic concepts of the model are same across, but they certainly have distinctive key features to cater to the different strata. The business models offered by Kotak Securities Partner initiatives are:
- Sub broker – a typical sub broker arrangement
- NetInvest Ace – This is relevant for a person who is currently serving its 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 the clients with advisory services or with portfolio managing services
These models have been discussed herein below in further detail:
Kotak Securities Sub Broker/Franchise/Partner
To begin with, we are discussing the eligibility criteria set by Kotak Securities for appointing a candidate as a sub broker. Needless to mention, one needs to be necessarily registered with SEBI and the relevant stock exchange. Apart from this, the criteria, specific to Kotak securities franchise are:
Minimum age to be atleast 21 years
Should have an experience ranging from 1-3 years in the financial market
Should have atleast completed higher secondary education
A sub broker can serve the client with all the products and offerings of Kotak Securities like equity, derivatives, mutual funds, IPOs, depository services, margin trading facility etc. Apart from this, it also offers access to the risk management services, back-office support and the technology.
How to become Kotak Securities Sub Broker/Franchise/Partner
For cracking this partnership, one can visit their website and fill in the basic details in the prescribed form. Thereafter, their representatives connect with the candidate. Upon confirming that above mentioned criteria are fulfilled, the case is taken forward. At this point, Kotak Securities undertakes a background check of this candidate to have an idea of the reputation that this candidate holds in the market. It is a very essential step for Kotak Securities Sub Broker program.
Once satisfied with the background check, they execute an agreement which documents all the relevant terms and conditions of this association. These terms and conditions generally include the term of the agreement, whether renewable or not, the role and responsibilities of the parties, the compensation/remuneration etc.
Kotak Securities Franchise/Sub Broker/Partner Revenue Sharing Model & Fees
Kotak Securities Franchise Revenue sharing ratio
As far as revenue sharing ratio is concerned, Kotak Securities Franchise offers a ratio of 30% to 50% to the sub brokers. This ratio may vary from case to case and can also be increased depending upon the client base, the trade volume etc.
Kotak Securities Sub Brokers initial investment Amount
As an initial investment, Kotak Securities Sub Broker Team expect the stock broker to set up certain front office infrastructure and has prescribed a minimum area of 300 sq. ft for such office. To function, a sub broker is expected to have certain workstation with broadband connections to set up trading terminal. Kotak Securities Partner initiative has prescribed a minimum investment amount of INR 300,000. This margin money is typically towards covering up the default risk which a sub broker may make.
Support from Kotak Securities Partner Initiative
In return of all this, a Kotak securities sub brokers can expect a strong support from Kotak Securities in terms of marketing, research and technological support. Further, Kotak Securities franchise also offers integrated trading facilities which makes this brokerage house attractive to a customer.
Kotak Securities Franchise/Sub Broker/Partner Offers
Kotak Securities Franchise also floats offers for its sub brokers whereby, it may offer reduced brokerage rates, or reduced account opening charges, reduced or waiver of AMC. Apart from this, it also may reduce the initial margin money, if the circumstances allow.
Kotak Securities NetInvest Ace
As mentioned above, NetInvest Ace is a module for a person currently serving clients with IPO and mutual funds (not necessarily with Kotak Securities) and wishes to expand its offerings to include equities. This model attracts people as it allows them to increase their product offerings and also provides a platform to be associated with a well-known and well-established brokerage house whereas in return, the person does not lose anything, rather increases its customer base and revenue generating capacity from existing customers by way of new product offering.
The eligibility criteria are more or less in line with that of sub-broker but the initial investment requirements are substantially lesser in this case. The eligibility criteria covers the age and educational requirement. Further, it requires a person have AMFI certification for dealing in mutual funds – this is a regulatory requirement and hence would be necessary in case of a tie up with any brokerage house. Similarly, for dealing in equity, one needs to be NCFM certified in a specific module of capital market and derivatives.
Features of NetInvest Ace:
Kotak Securities NeInvest Ace provides a single interface
Kotak Securities has simplified the functionality for this model. One can manage all the offerings for its client from the same interface i.e. one can apply for MF, IPO, undertake trading activities etc. for a client from the same interface
Kotak Securities NetInvest Ace technical upgradation
By way of the technology provided by Kotak Securities, the forms for all these products can be filled and submitted online and hence does not require running behind the clients for delivering, collecting forms
Kotak Securities NetInvest Ace integrating bank accounts
Similarly, one need not run after clients for collection of cheque as the same can be transferred online or can be auto debited in case of Kotak bank account of the client which is usually offered by Kotak Securities.
How to become Kotak Securities NetInvest Ace Partner
To partner with Kotak Securities under NetInvest Ace program, one can log on to their website and fill up the necessary details and then the Kotak personnel connect with the candidate and take the registration procedure forward. Thereafter, the candidate enters into an agreement with Kotak Securities so as to document all the necessary terms and conditions of this business arrangement.
Kotak Securities NetInvest Ace Revenue Sharing Model & Fees
Kotak Securities NetInvest Ace Revenue sharing ratio
As mentioned above, this model merely adds up new product offering and thus leads to increased revenue potential. The sharing herein would typically range from 50% to 80%.
Kotak Securities NetInvest Ace Initial investment Amount
As an infrastructure set up it only mandates maintaining a workstation with broadband connectivity and a voice recording machine. The Investment amount ranges from INR 50000 to INR 1 Lakh
Support from Kotak Securities NetInvest Ace Team
One can expect all the basic support needed to smoothly conduct this business. The support would be in form of technology support i.e. the technology being used at Kotak Securities would equally be available for the agent, the marketing support, support from research team etc.
Kotak Securities NetInvest Direct
Kotak Securiries NetInvest Direct initiative, as the name suggests, allows the customers to directly interact with Kotak Securities. The business associate in this case, identifies a potential customer, provides a lead to Kotak Securities and then post conversion of that lead, the customer and Kotak Securities take the relationship forward.
The eligibility criteria only pertain to age and academic qualification which is prescribed at 18 years and HSC.
How to become Kotak Securities NetInvest Direct Partner
To partner with Kotak Securities under NetInvest Direct program, one can log on to their website and fill up the necessary details and then the Kotak personnel connect with the candidate and take the registration procedure forward. Thereafter, the candidate enters into an agreement with Kotak Securities so as to document all the necessary terms and conditions of this business arrangement.
Kotak Securities NetInvest Direct program Revenue Sharing Model & Fees
Kotak Securities NetInvest Direct Revenue sharing ratio
As the model description suggests, it works on referral programme i.e. one needs to refer a customer to Kotak Securities and earn a referral income or a percentage of the revenue earned by Kotak Securities from that customer. Thus, under this model, the revenue mechanism may widely differ, depending upon case to case.
Kotak Securities NetInvest Direct initial investment Amount
For the infrastructure set up, it only requires a workstation with broadband connection and a contact coordinates. No margin money clause would be applicable over here as herein the customers are engaged with Kotak Securities directly and not are not undertaking the trading activities via any business partner.
Support from Kotak Securities NetInvest Direct Team
The major support needed under this would be training support and hence Kotak Securities ensure that the requisite training’s are provided to the business partner periodically. They are educated about all the offerings of Kotak Securities, the benefits of association with this brokerage house, about upcoming product or service line.
Why Partner with Kotak Securities
Kotak Securities Franchise is stock broking franchise Brand
Kotak Securities Sub broker program Offers varied business models & options to its Sub brokers
Kotak Securities has one of the strongest research team
Kotak Securities has entire range of products and hence more options to offer to the customers