ShareKhan Franchise / Sub Broker / Partner Review – Deposits, Revenue & moreLast Updated Date: Nov 28, 2022
Sharekhan Franchise is one of the largest providers of Stock Broking franchises with around 3000 sub-brokers in India.
In this article, we will perform a detailed Sharekhan Franchise Review where we will cover an in-depth analysis of Sharekhan Sub Broker Offers, Sharekhan Franchise Commission Sharing, Cost & other important features of the Sharekhan Authorized Person Program.
Table of Contents
- Rating & Review
- Business Models
- Eligibility Criteria
- Documents Required
- Pros & Cons
- Earning Potential
- Become a Sharekhan Partner Now!
Sharekhan Franchise Ratings & Review by Top10StockBroker
|Sharekhan Franchise Ratings|
|Products & Services||8.0/10|
About Sharekhan Franchise
Sharekhan, established 16 years back, is one of the most reputed stock brokers and ranks on the list of top stock brokers.
Over the years, it has earned high credibility; hence, it has been one of the favourite choices when becoming a sub-broker/franchise.
A Sharekhan sub-broker caters to its customers with all the products/services that Sharekhan stocks – some of these are equities, derivatives, commodities, currencies, mutual funds, IPO, investment, saving packages, portfolio management services, etc.
Sharekhan highly recognizes and appreciates the business development that a sub-broker offers; hence, it has been promoting its sub-broker business.
Further, it has also launched various models of business associations with different risk & return appetites to suit different strata of people.
Sharekhan also supports its business partners with various training programs and promotional offers to help them develop business.
Sharekhan has as many as 2700+ sub-brokers in more than 580 cities.
Please read the article below to learn more about the sub-broker models offered by Sharekhan and the other relevant aspects like eligibility criteria, revenue sharing, investment requirements, and offers.
The latest news in the market is that All Sub Brokers will now be converted into Authorized persons per SEBI guidelines.
The Sharekhan Authorized Persons’ roles & responsibilities will be the same as Sub Broker, but the registration process will change.
They will now be registered with Exchanges instead of SEBI. All new registration will take place in the name of the Authorized Person while everything will remain similar to the sub-broker model.
Explore more about the Best Sub Brokers available in the market to serve you proficiently.
Become an Authorized Pers0n of Sharekhan
Types of Sharekhan Partnership Association
There are two types of Sharekhan Franchise association:
- Sub Brokers / Power Brokers
- Independent Financial Advisors or IAF
Sharekhan Power Brokers or Sharekhan Sub Brokers or Sharekhan Authorized Person
Under this model, one needs to have a decent setup. The power broker or sub-broker, or Authorized Person can acquire and serve clients who trade online by themselves.
For this model, Sharekhan offers clients various customized and flexible service options. It also tags a dedicated relationship manager for Equity sales, Risk Monitoring, and Operations related issues.
The technology, service, and marketing support are entirely taken care of by Sharekhan.
It also ensures that these setups are well-educated and well-trained with various procedures, portals, and various offerings of Sharekhan.
The key updates in the share market and the forecasts are from time to time shared with the brokers to have an outreach to the huge customer base.
Marketing support is crucial for increasing the business and creating a win-win situation for the broker and franchiser. It arranges client events/activities which help in increasing the visibility of the brand.
Benefits of Sharekhan Authorized Person or Power Broker
- Allows offering of customized solutions for the high-net-worth clients
- Appointing dedicated relationship managers to serve clients better
- Appointing dedicated relationship managers to monitor and improvise the sales, risks & operations
- Offers a wide range of products & services along with tailored solutions
- Bandwidth to serve a large client base
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- Religare Securities Franchise
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Sharekhan Independent Financial Advisor (IFA)
This model is specific to a few product ranges i.e., mutual funds and allied products. As the name suggests, this model requires a candidate who can perform as an advisor guiding the clients to make investments.
Hence, the candidates who wish to limit their scope of business to mutual funds and related products, this is the best-suited business model.
Benefits of Sharekhan IFA
- Product-specific focus
- Dedicated relationship managers to assist with advisory and operational matters
- Allows modified solutions for high-net-worth individuals
Sharekhan Partner Revenue Sharing or Sharekhan Sub Broker Commission
Sharekhan has a dynamic revenue sharing model for reimbursing its sub-broker based on their performance. Also, each business model has a different commission range on the functions performed and the risks borne.
The remuneration models have been referred to as dynamic because the commission for each broker varies depending upon various factors like the revenue generated, the security deposit made, the investments made, and various other relevant parameters.
Let’s have a look at the overall revenue sharing ratios for each of the business models:
Sharekhan Authorized Person Commission
For the Power broker or Authorized Person model, the revenue sharing ratio is the highest as the sub-broker performs the most critical functions and takes the highest investment risks.
The revenue sharing ratio might even exceed 70%*.
Sharekhan IFA Commission
Under this model, the revenue sharing ratio is more or less between 30% – 40% for Sharekhan and 60%-70%* for Sub Broker.
The ratio depends upon the products sold and the margins that such products hold. This model can be said to be one of its kind offered by Sharekhan; the revenue ratio seems to be sufficient and justified.
Refer to this Table for a clear picture:
|Sharekhan Commission||Sub Broker Commission|
|Sharekhan Authorized Person / PowerBroker||30%||70%*|
|Sharekhan IFA||30% – 40%||70% – 60%*|
Start your Broking Business with Sharekhan
Sharekhan Franchise Cost or Security Deposit
Like any other business, even the sub-broker business entails a certain initial investment.
In the case of a sub-broker model, the initial investment has two variants: the security deposit that a sub-broker must keep with the principal broker.
This security deposit is generally refundable. The deposit is a cover for any defaults that a sub-broker might make.
Sharekhan Franchise Infrastructure Set-up Cost
The other kind of investment is the infrastructure investment. Powerbrokers & IFA have to invest in infrastructure to start a franchisee.
On the other hand, a power broker and an IFA would be dealing with new and existing clients daily and hence would need a decent setup to entertain their clients.
The amount of investment is another dynamic factor. The parameters affecting this amount include the city of the sub-broker, the revenue projections, the existing client base, if any, and other relevant things.
Initial Investment amount by Sharekhan
Typically, the security deposit is around Rs.50,000* for all the business models. In summary, the infrastructure investment is very specific and difficult; however, it may range from 50,000 to 1 lacs.
Regarding infrastructure investment – we refer to office space, furniture, the required telephone lines, trading terminal, internet connections, workstations, and other primary requirements.
Check this Table below for a better understanding of Sharekhan Franchise Cost:
|Sharekhan Franchise Security Deposit Amount|
|Sharekhan Authorized Person / PowerBroker||INR 50,000 *|
|Sharekhan IFA||INR 50,000 *|
Sharekhan Sub Broker Offers
To encourage and promote the business of sub-brokers, Sharekhan regularly launches various offers. Some of the regular offers are:
- Reduced brokerage rates
- Reduced investments
- Less margin money
- Dynamic revenue sharing ratio
- Free Demat accounts
- Online & quicker procedures
All Sharekhan Authorized persons can easily avail of the offers once they register with Sharekhan.
Sharekhan Franchise or Sharekhan Authorized Person – Eligibility Criteria
Before discussing the criteria exclusive to Sharekhan, it is important to take note of the statutory & regulatory requirements:
- For any person to become a sub-broker, it is essential to obtain a sub-broker registration from the stock exchange, i.e., BSE and NSE. No candidate can qualify to become a sub-broker if they do not hold such registration.
- The other basic criterion is the minimum age prescribed – one should be at least 18 years of age to qualify for associating with Sharekhan as a sub-broker.
- The next criteria pertain to academics and experience in the stock market sector. Concerning the academic qualifications, Sharekhan prescribes a minimum qualification for graduation. This may be in any field – science, commerce, or arts.
- The other requirement is the knowledge and practical knowledge that one has of the stock market to assist and guide clients.
- Any additional qualifications like stock market certification etc. can be very helpful.
Sharekhan Sub Broker Support / Advisory
Like many other stock brokers, Sharekhan offers Support and advisory to its sub-brokers. You don’t need to understand everything on your own.
If you are facing and finding it hard to find the answer to certain questions, remember you have Sharekhan advisory and support facility available.
These facilities are designed exclusively for your assistance to ensure each partner can keep a positive attitude towards their franchise and benefit each business.
The range of Support offered by the broking company to its business partners is as follows:
- Back-office Support
- Trading support
- Marketing support
- Advisory Support
- Website support
How to become a Sharekhan Sub Broker or Authorized Person?
- Interested candidates may fill in the form herein with the required basic details, and we shall help you connect with Sharekhan’s business expansion team.
- Upon providing these details, the same would be exchanged with Sharekhan’s team, which would connect with the interested candidate and understand their interest and expectations.
- Next, Sharekhan’s recruitment team would perform a background check to ensure that the details provided are genuine.
- Upon completion of the background check by Sharekhan’s team, they would connect with the candidate to have detailed discussions about the business plans, the expectations of the candidate, the expectation of Sharekhan, the business projections, the revenue sharing ratio, the investments, etc.
- During this discussion, the candidate must submit all the relevant documents like the registration form SEBI, NSE, BSE, academic certificates, ID card, etc.
- Based on such discussions, an agreement would be executed between Sharekhan and the candidate.
- Upon execution of the agreement, the sub-broker can commence their business as Sharekhan business associates.
Documents required to become Sharekhan Authorized Person
One needs to submit a minimum of the following documents:
- Identity proof copy
- Address proof copy
- Registration certificate copy
- Experience certificates copy
- Academic qualification certificates copy
- Security deposit cheque
- Proof of investments
The entire Sub Broker tag generation process takes 4-5 working days.
Why Partner with Sharekhan?
Here is the various reason to partner with Sharekhan:
Sharekhan’s sub-broker offers are better than any other franchiser in the industry. Sharekhan’s major offer of up to 70% revenue share during trading.
Marketing & Training Support
Sharekhan provides all sorts of marketing support to their sub-brokers. They also organize monthly events & training sessions for their business partners.
Sharekhan Franchise owners get national-level advertising support & presence in mass media.
Advisory & Stock Recommendations
Sharekhan provides free advisory Support, stock tips & recommendations to their sub-broker, who further passes it on to their clients.
Sharekhan is highly active in the case of advisory backup as they believe that clients can be highly engaged with sharing tips & recommendations regularly, which further adds value to the business.
State-of-the-art technology to make your trading experience impressive. Enabling hassle-free 1.5 million trades per day.
Sharekhan is one of the oldest broking houses and holds a great reputation in the market. It has built up a big brand and obtained high recognition in the market.
Affordable Brokerage Rates
Sharekhan provides brokerage plans for the client segment. A trader gets prepaid & post-paid plans with affordable brokerage rates & investors get decent brokerage rates as their volume is comparatively low.
Trade Tiger & Sharekhan App – Top-notch Trading Platforms
Sharekhan has one of the most famous trading platforms in the country, known as Trade Tiger. Besides Trade Tiger, they also provide Sharekhan App & Web Trading Platform.
These trading platforms have all types of features available, which enhances a trader’s & investor’s experience.
Advanced Tools for Business
Customer Interface System (CIS): Your complete customer details for placing a request on the new account opening form or KYC.
Risk Tiger: Helps track the risk or monitor margin shortfall in real-time. View square-off report and can also check confirmation after square-off.
Eternity: This tool views all kinds of statements related to ledger and brokerage.
Multiple Business Solutions: Last but not least, they offer a variety of business solutions for the sub-broker associations.
Sharekhan Franchise – Pros & Cons
Each franchise has limitations that you realize through someone’s references or after acquiring the franchise.
Luckily the benefits attached to most franchises help you build a positive sentiment towards their business model for traders.
And something similar has also happened with us while reviewing this Sharekhan Franchise program. Take a look
Pros of Sharekhan Franchise
- Multiple business models are a plus point
- A well-built and a reputed brand
- Attractive revenue sharing
- Wider online presence
Cons of Sharekhan Franchise
- Decent offline presence
- Huge capital requirement
Sharekhan Franchise Registration
It’s time to explore the steps involved in registration to acquire Sharekhan Franchise. Similarly, what are the critical metrics you need to consider when applying for the franchise? Take a look to understand everything in the big picture.
Before we reach straight to the step-by-step process, certain eligibility conditions must be checked.
Such as, Sharekhan asks its applicants to be graduates in finance with 1-2 years of experience as a sub-broker. If you, have it, you can readily proceed with the application.
Luckily, these eligibility metrics are compulsory and aren’t forcefully applied to a sub-broker. You can still get the franchise if you have experience in a similar field or your own business experience before.
The registration process will go like this:
- Start filling up your name and contact number in the form
- Attend a call back from the Sharekhan executive
- Hereafter a physical meeting is arranged
- Both parties share documents
- The applicant then must submit an infrastructure investment of Rs 70K – Rs 2 Lakh.
- Once everything is done, start inviting the client to the Sharekhan portal and login.
Earning the potential of a Sharekhan Partner / ROI
Earning the potential of a Sharekhan Partner has always been a remarkable subject for investment.
One of the most commonly asked questions is how much someone can earn by acquiring the Sharekhan franchise. But we have tried to give a valid and a legit answer.
Well, earning figures are exclusively decided by the sub-brokers experience and effort. If you bring a quality client in, you can readily generate a consistent income. Simply put, a sub-broker can readily make a 70% commission per client.
And most notably, this isn’t a one-time commission but a lifetime earning potential built by Sharekhan for its partners.
Such as, you will be offered 70% of the revenue generated by Sharekhan on every single client per month that you send to the broker.
And the process goes on until the client withdraws their name from Sharekhan services or stops generating revenue for the broking company.
Sharekhan Franchise Referral Program
Like Sharekhan Franchise, there are second-best alternative people may love going with is the referral program.
The broker has even named it as Sharekhan IFA program. If we talk about the earning potential, you can make anything between 30% to 50% commission per client in the program.
Brokerage Charges levied to the clients of Sharekhan Partners
It’s time to break down a summary of brokerage charged by Sharekhan from its client. The brokerage charges for equity intraday orders are 0.10%. Similarly, charges are 0.50% for equity delivery orders.
For Equity options, the broker charges Rs 100 per lot. That’s something Rs 30 per lot if you are trading currency options. Equity futures, currency, and commodity trades also have 0.10% charges which are fairly less.
The broker is likely to turn to a less favourable alternative for the option traders. But across other services, it turns out to be a great choice.
However, franchise partners can also attract clients via discounted offers, and the broking firm will discuss much information.
Sharekhan Authorised Person – Products Offered
Sharekhan is one of the largest and most reputed broking firms in India. Hence, you can see almost every product variety the broker offers to its clients.
Similarly, the range of products that you are an Authorised person or franchise partner will be allowed to market, and services and products include:
- Options and Futures
Mutual Funds, IPOs, and other plans are also available. But on that, you can better discuss with the Sharekhan executive.
A certain condition for a few products’ range must be met before you access them.
List of Top Sharekhan Partners / Business Partners
Sharekhan is a full-service broker and currently offers only one type of partner program – the Sharekhan Sub broker or Authorized person business model.
But with this single one, it builds a giant network of business partners.
However, the broker also runs the Sharekhan IFA program, and people engaged in this business program are counted additionally.
Sharekhan Sub Broker Testimonials
I got associated with Sharekhan a few years back, and it has been a great business deal for me. Not only do they provide the most economical and reasonable brokerage rates, but they also are fair with the revenue sharing. I also had a great experience with their marketing team, as they assisted me greatly in the initial phase. By – Vinay Rasik, Pune.
Becoming a remisier with Sharekhan has been one of my best decisions. It has been an extra source of income for me. I earn just by referring my known people to Sharekhan and adding them to the client list. By – Srimukhi V. K., Ghaziabad.
I’ve been in the stock market for a long time but was never associated with Sharekhan until a few months back. This has certainly been a great business venture for me as they have assisted me during all the phases. They have not only great products to offer to clients but also provide economical packages, which helped me in increasing my client base. They have also been providing some good offers to me based on my revenue generation. By – Gopal Hari Venkat, Vishakhapatnam.
Sharekhan Franchise or Sharekhan Business Partner – Conclusion
To sum up the discussions above, we can say that Sharekhan offers a variety of business models to suit the different requirements of people.
It provides a very decent revenue sharing ratio which is dynamic and hence may increase as the revenues increase.
The investment procedures prescribed by Sharekhan are easy to live up to and not very demanding. The Support that Sharekhan provides about the business, marketing, operations, advisory, research, etc., is quite praiseworthy too.
It would not be wrong to say that they have quite plain and simple eligibility criteria, and the way/path to becoming their sub-broker is also quite easy – just fill-up the form herein and then leaves the rest to us.
Sharekhan Authorized Person Program FAQs
Here is the list of FAQs related to the Sharekhan authorized person:
Meaning of sub-broker?
A sub-broker is a kind of retail chain of the principal broker.
The minimum eligibility to become Sub-broker?
To become a sub-broker, one must obtain registration from SEBI and be affiliated with the stock exchange. These are the regulatory and statutory requirements of becoming a sub-broker.
- 18+ age
- Knowledge/experience in the stock market sector
What are the functions of a sub-broker?
The functions would vary depending upon the model chosen.
For a powerbroker, the functions would include identifying opportunities, making clients, and then trading & regulating for them.
In the case of remisier, the functions would be limited to referring a potential client to Sharekhan.
For an IFA, the functions would be similar to that of a powerbroker – the only difference would be the product being dealt with.
Assistance by Sharekhan to function as a sub-broker?
Here is the list of Support provided by the Sharekhan Partner Program:
- Training – operational, technical, marketing
- Research & advisory
- Tailoring solutions
- Customer care support
Does Sharekhan have Sub Broker Model?
Yes, Sharekhan does have the sub-broker franchise business model included in the list of franchise models it renders.
This model is cleanly drafted for the existing and the new sub-brokers. Sharekhan already has a wide network of sub-broker available in the country.
Does Sharekhan have multiple Franchise models?
Yes, Sharekhan does provide more than one franchise business model. There are a lot of stock broking houses that provide 3 or 4 business models.
However, Sharekhan provides only the sub-broker / power brokers model and the independent financial advisor or the IAF model.
What is Sharekhan Sub Broker Commission?
The brokers provide the model Authorized Person or power broker, which, if availed, the franchisee will earn revenue of 70% from the revenue made. 30% is only deemed for the brand’s collection in the form of royalty, which must be paid according to the time interval.
How much does Sharekhan Franchise Cost?
Sharekhan provides two models of franchise collectively, and each of the models has a different investment cost attracted to the structure.
Per the set structure and model, the franchisee is supposed to pay Rs.50000, irrespective of the chosen model.
Does Sharekhan have a Partner Program?
Sharekhan provides the independent financial advisor business model alongside the sub-broker business model.
One can opt for this model and provide guiding assistance to the clients regarding the kind of investments they wish to make.
What is Sharekhan Partners Sharing?
If you opt for the Sharekhan authorized broker model, you will be able to earn 70%, while you will provide the franchisor with 30% of your revenue.
On the other hand, the IFA model holders, or the advisors, can earn revenue in the proportion of 70% – 60%, whereas the franchisor will consume 30% – 40% of the revenue.
Is the Sharekhan Partner Program Free?
No, none of the models provided by the stock broker are free of investment cost—irrespective of the model you choose, including the IFA model.
If you wish to invest in either of the models, i.e., IAF or the authorized model, you need to pay Rs.50,000 as the investment fee.
Does Sharekhan provide Training Assistance?
Yes, training assistance is indeed a part of the company’s structure. The franchisor ensures that good help is provided to the franchisees to help them set up their business.
Events and training sessions are provided now and then for the franchisees.
How to Become Sharekhan Sub Broker?
If you have decided to get associated with this stock broker, click on the button “Become Sub Broker” on this page. Fill in the pop-up form, and the company will follow up with you for the further process.
A meeting will be fixed before forming a contract of franchise business where entitlements and obligations are discussed.
Does Sharekhan Franchise provide Support?
Sharekhan provides significant Support in the domains of technology, services, and marketing.
Franchisees are trained professionally about the brand’s products, services, and other facilitation, so the brand’s standards are safeguarded. Also, marketing assistance is provided so franchisees can gain clients soon.
What is the minimum brokerage charge in Sharekhan?
0.10% is the minimum brokerage charge in Sharekhan that needs to be noted before it’s too late. The charges ratio can also go high, depending on the types of assets selected by clients.
Such as, option trades can invite the highest charges of Rs 100 per lot. However, most assets have almost similar charges variation.
What is the role of the Authorised Person in the stock market?
An Authorized person is accountable for maintaining a relationship with the customers and servicing them in multiple products.
Your role will be somewhat similar to an upper-level manager. After all, you will be the owner of your franchise.
How do I give POA in Sharekhan?
You can give a POV to Sharekhan online or offline mode. The Proof of Address is a self-declaration by an application that its authenticity is credible and legit.
Which stock broker is best for the franchise?
Sharekhan stock brokers offer 50% to 70% revenue sharing in its franchise program. At the same time, the broker even assists its franchise partners via myriads of Support and advisory facilities.
Hence, it won’t be wrong to call it one of the best alternatives for the franchise.
How does the Sharekhan franchise work?
Sharekhan franchise works on a revenue-sharing-based model. Franchise partners retain 50% to 70% commission on every single client they send to the Sharekhan Trading platform.
How long does it take to start the Sharekhan franchise?
It hardly takes a week if the applicant is prepared with the needed list of documents and required investment capital, plus the office where they will be carrying out their business activities as a franchise partner.
How to Start a Sharekhan Franchise in India?
To start a Sharekhan Franchise in India, applicants must be available with applicable documents. Similarly, the functional area and initial investment must be available.
Why should you choose a Sharekhan franchise over others?
Sharekhan Franchise offers 50% – 70% commission to partners for the lifetime or until their referral client is a member of the Sharekhan client base.
What are the hidden charges in Sharekhan?
These charges are unlike brokerage and other charges that come to light when Sharekhan’s client has ended up making a transaction or placing an order at Sharekhan.