Motilal Oswal Franchise is one of the most prolific stock broking franchise in India. In this Article, we will have a detailed Motilal Oswal Franchise Review along with deep analysis of Motilal Oswal Sub Broker Offers, Motilal Oswal Franchise Commission Model, their Franchise cost & other important features of Motilal Oswal Authorized Person Program.
Motilal Oswal Franchise Customer Ratings & Review
|Motilal Oswal Franchise Review & Ratings|
|Products & Services||7.5/10|
About Motilal Oswal Franchise
Motilal Oswal, one of the solid brand names in the field of broking, is a popular choice among sub-brokers. The most critical reason for this popularity can be said to the strong support that it provides to its sub-brokers. Another reason can be said to be the multiple business model & the level of flexibility that one enjoys.
Motilal Oswal deals in a host of producst viz. equity, commodities, currency, derivative instruments, investment instruments like SIPs, mutual funds, IPO Innvestment, insurance and many more. Considering that Motilal Oswal has a huge variety of services like demat account, online trading, intraday trading & more, hence the business opportunities that sub-brokers get, are multiplied.
Motilal Oswal Franchise or Motilal Oswal Authorized Person Program has a very wide network presence in the nation currently – they are present in more than 500 cities with almost 1500 sub-broker offices. The article herein discusses in detail the business opportunities available with Motilal Oswal and how to register with them.
New SEBI Guidelines has released wherein All Existing Sub Brokers now will be Converted into Authorized Person. The Roles, Responsibility & business model of Motilal Oswal Authorized Person will remain same as Sub Broker only the registration process will differ, the process will be much easier & quicker. All new franchise will now be sold in the name & legalities of Authorized Person & not in the name of Sub Broker.
Become an Authorized Person of Motilal Oswal
Motilal oswal Franchise offers four types of business models to their partner:
- Franchise / Sub Brokership / Authorized Person
- Employee to Entrepreneur Program
- Channel Partner
Lets have a detailed review of all four of them:
Motilal Oswal Franchise / Motilal Oswal Sub Broker / Motilal Oswal Authorized Person
Motilal Oswal Franchisee model is a general franchisee model wherein the franchisee acts as a retail store for Motilal Oswal. Herein the candidate is required to undertake the role & responsibilities of an entrepreneur or a businessman. The candidate enjoys & leverages on the brand name of Motilal Oswal.
However, all the other responsibilities like identifying opportunities, talking in to potential clients, making the clients invest in more variety of assets, retaining the client and undertaking trading/investing on behalf of 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 experience that candidate holds, the terms of arrangement might differ from that in the Franchisee model.
Under this programme an employee turns into a business person and the growth opportunities for such candidate would entirely depend upon him and not on his employer.
It is because of this very reason that a lot of employees who have outstanding performance record 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 programme:
- A huge career progress
- Directly working on own’s progress, no more dependence of performance of the whole organization;
- Direct earnings
- Independence to set own procedures & way of doing business
- Can also be taken as an extra source of income along with 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 remisier model, the candidate is required to act as referrer.
The candidate is not required to take up a large part of responsibilities; rather the role is limited to that of an introducer. The balance job is done by Motilal Oswal executives.
Thus, this is a simpler role and hence suitable for candidates who do not wish to set up a full time business but would like to have an extra source of income.
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 of 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 that is suitable to sub-broker who are currently dealing in only limited products say equity or derivatives.
Thus, a sub-broker who wishes to diverse his product profile (for eg. Currency, IPO, mutual funds, insurance etc.) and the services and thus increase his/her 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 expansion and multiplying the earnings.
Benefits of Motilal Oswal Channel Partner:
- Upgrading of the business
- Addition to product offerings
- New services to offer to clients
- Multiplies earning capacity
Motilal Oswal Sub broker Commission / Motilal Oswal revenue sharing model
With a wide variety of business opportunities with Motilal Oswal, it is necessary for Motilal Oswal to also give a good revenue sharing ratio or commission rate to its sub-brokers. The broking franchise, hence, has fulfilled this and their revenue sharing ratios are quite competitive with the market rates.
Motilal Oswal is among those broking firms who have realized the high potential that a sub-broker carries and accordingly Motilal Oswal ensures that sub-brokers are well remunerated to as 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 – higher the revenue; higher will be the ratio of sharing. But in some cases, it might also have a fixed revenue sharing ratio.
Revenue Sharing Model or Commission Model differs for each Sub Broker Model. This is because each model carries a different degree of risk and different responsibilities and hence the earnings for each model also differ.
The model with more responsibilities & more risks would carry higher return and the one with lesser functions and lesser responsibility would result in lesser revenue share.
Motilal Oswal Commission Sharing with Multiple Business Models:
Lets discuss 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 who is associated with Motilal Oswal as Franchisee, would earn between 60% to 80% of the revenue that comes from his/her clients.
- Motilal Oswal Employee to Entrepreneur: The ratio is more or less in line with that in 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 point above applies to this point as well.
- Motilal Oswal Remisier: A remisier performs only initial part of the entire business cycle and hence can be said to a very limited contributor to the business cycle. Accordingly, the revenue for this model is limited to 20% on an average. Though the ratio may range from 15% to 30% as well.
- Motilal Oswal Channel partner: The Channel partner is a person who has an existing set of clients and is now engaged in wider product/service base. Since a channel partner bring along with it a huge client base and hence an opportunity of adding lot of potential clients to Motilal Oswal network, this model gets the highest revenue ratio. The additional or incremental revenue is on account of 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 better understanding of Motilal Oswal Commission Models:
|Motilal Oswal Commission||Sub Broker Commission|
|Motilal Oswal Sub Broker / Motilal Oswal Authorized Person||40% – 20%||60% – 80%|
|Motilal Oswal Employee to Entrepreneur||40% – 30%||60% – 70%|
|Motilal Oswal Remisier||85% – 70%||15% – 30%|
|Motilal Oswal Channel Partner||30% – 10%||70% – 90%|
Find the list of Sub broker Franchise with decent revenue sharing models:
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Start your Broking Business with Motilal Oswal
Motilal Oswal Franchise Cost or Security Deposit
In line with the industry practice, Motilal Oswal also calls for certain security deposit & investment infrastructure. The security deposit is mandated so as to be used in cases wherein the sub-broker commits any fault and needs to be monetary penalized as per the directions of stock exchange or SEBI.
In such cases, if the sub-broker does not pay the penalty, then, the principal broker (i.e. Motilal Oswal) can use the security deposit to pay such penalty on behalf of the sub-broker. Another instance of this security deposit could be 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 sub-broker, the category of clients, the products offered by authoried person etc.
Motilal Oswal Sub Broker Infrastructure Set-Up
Infrastructure Set-up is necessary for every Sub broker. The infrastructure includes a decent workplace – an office set up with few workstations, trading terminal, telephone connections, internet connectivity etc.
Infrastructure set-up 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 lot of instance when the clients would need to visit sub-broker’s office and Motilal Oswal would want the clients to have a good feel about their sub-broker’s 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 or tier 2 or tier 3, the category of clients, the revenue projected etc.
Check Motilal Oswal’s Franchise Cost in the below Table:
|Motilal Oswal Franchise Security Deposit Amount|
|Motilal Oswal Sub Broker / Motilal Oswal Authorized Person||INR 25,000 – 100,000|
|Motilal Oswal Employee to Entrepreneur||INR 25,000 – 100,000|
|Motilal Oswal Remisier||INR 10,000 – 25,000|
|Motilal Oswal Channel Partner||INR 100,000 – 1,000,000|
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Motilal Oswal Sub Broker Offers
To attract and retain the sub-brokers & franchisee, Motilal Oswal often launches promotional schemes. 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 workplace;
- Reduced security deposit
Motilal Oswal Franchise – Eligibility Criteria
To become a sub-broker with Motilal Oswal, one needs to be in compliance with the following conditions:
- First & foremost is the registration with SEBI – 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 financial/stock market
- Sub Broker must be adaptable to the policies & procedures of Motilal Oswal
- Should be free to accept the designing & structure to reflect Motilal Oswal Brand
- Franchise owner must be atleast 18 years of age
- Should be a graduate
- Any stock market/financial market certification would be an add on
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 Motilal Oswal team will have a telephonic 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 would be discussed and agreed upon
- Candidate will submit the documents meet eligibility criteria (refer next section to see the list of documents required)
- After document submission, agreement will be made & motilal oswal will generate the sub broker ID.
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 marksheet
- Experience certificate
- SEBI registration certificate
- Investment proof
- Security deposit cheque
Know about other stock broking franchise:
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Why Partner with Motilal Oswal Franchise?
Check out the various reasons of to partner with Motila Oswal:
Motilal Oswal is a renowned brand name and carries quite a lot of weightage along with it.
High End Support & Training Programs
Motilal always go 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 session 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 robust 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 in pushing notifications in the form of email or sms to the clients who are inactive.
Top Shot Research & Advisory
Motilal Oswal’s is known to have one of the best Research & Advisory team in the country. They are also helping their partners with a lot of training sessions to strengthen their advisory support to the clients.
They provide all sorts of technical analysis & reports to the sub brokers & channel partners to help the clients get better return on investment.
Marketing & Other Support
Marketing & branding support is one of their core strength areas – the sub-brokers benefit a lot from this. Tailored investment options for high net worth individuals. The broking also provides Customised solutions to large sub brokers.
Motilal Oswal Partner Testimonials
We are very happy being a sub-broker with Motilal Oswal. They have lent us huge support through out. 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. At no point of time, I felt that I need to look for any other opportunity. Even during recession, I received all forms of support from Motilal to ensure smooth run of my business. I’m also very fond of the seminars that they regularly conduct – this has helped a lot in adding new clients. By – Lavesh Gehlot, Jodhpur
Motilal Oswal Franchise Summary
In brief, Motilal Oswal is definitely one of the popular choice for sub brokership because of their flexible & multiple sub broker models.
Other reason is the revenue sharing ratio system that is fair and progressive from the sub-broker’s view point. 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 own business & passion.
Motilal Oswal Authorized Person Program FAQs
Ques 1 – Types of sub-broker model?
Ans – There are 4 such models – Franchisee, Employee to Entrepreneur, Remisier & Channel Partner.
Ques 2 – Procedure to partner with Motilal Oswal?
Ans – Fill up the form herein and we will connect you with Motilal Oswal Team.
Ques 3 – How much time does the registration process take?
Ans – The Sub Broker registration process takes 3 to 5 days for completion, fill up the form below to start the process.
Ques 4 – Commission on becoming Motilal Oswal sub-broker?
Ans – It ranges from 20% to 80% depending upon the model chosen.
Ques 5 – Does Motilal Oswal provide support after becoming sub-broker?
Yes, there is a constant support in terms of marketing, advising clients, training clients, training the staff, educating on the mechanisms of stock market and operating the trading platforms.
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