SHCIL Franchise is one of the mainstream business streams the broker has to offer to its potential partners in the stockbroking space in India.
SHCIL, as a prominent full-service stockbroker, is almost a 3-decades old broking firm, running successfully in the financial market. Its wide offline presence all over the country helps clients to reach the broker easily. The broker offers a lucrative revenue sharing ratio with business partners.
In this detailed review of SHCIL Franchise, let’s try to understand its different business offerings in terms of revenue sharing percentage, costing, privileges, benefits, limitations etc.
SHCIL Franchise Details
SHCIL or Stock Holding Corporation India Limited is a full-service stockbroker. StockHolding is the parent business under which SHCIL services limited operates as a broking arm. The company was incorporated as a public limited company in the year 1986 and its corporate office is in Mumbai.
SHCIL has been promoted by multiple investors, which includes leading banks and financial institutions.
The broking company is one of the few stockbroking companies upon which has seen healthy stability. You can get yearly reports of the broker as the broker publishes its annual report on a yearly basis.
The services which are offered by SHCIL to the domestic as well as to the cross-border investors are: Custodial services, Clearing and settlement services (Cash segment), Physical and electronic safekeeping services, Customized reports, Premium offerings, web-delivery, Technology, Vaults, Personnel, Asset servicing.
SHCIL services, a member of BSE and NSE allows its clients and business partners to trade in the following trading segments.
Anyone who wants to become a business associate of SHCIL services can opt the only business model i.e. Sub-broker 0r Remisier or Authorized person of the company.
In this article, we are going to discuss the different aspects of SHCIL services so that you can decide for yourselves which this is an optimal business opportunity for you or not.
SHCIL Franchise Models
SHCIL Services offers only one kind of business model to the clients:
Sub-broker/Remisier is the only business partnership model offered by SHCIL Services. So, if you want to start a partnership business with this broker you will have to go with the sub-broker model.
In this model, a partner is required to deposit some security money (which is refundable in nature) with the main broker. SHCIL services offer business development officer for each sub-broker/Remisier. The business partner can get the daily market update and advises from the company.
SHCIL Franchise Benefits
To start a partnership business with SHCIL gives you many benefits. Some of the benefits will directly impact your business revenue, others are there to provide you with regular support from aspects such as Marketing, Operations, Training etc.
These are the benefits SHCIL Franchise provides you as your stockbroking partner:
Robust back-office support: The back-office support provided by the broker is quite different in the industry. New technology and prompt IT support gives you an opportunity to experience one of the best back-office support.
Proper knowledge of product and training support: If you tie-up with the broker, you will get proper knowledge of products offered by the SHCIL. Not only this, but you will get proper training about the products which helps in strengthening product knowledge and personal development.
Market update on a continuous basis: You will get regular updates on the global and domestic market. SHICL has a dedicated and separate team of equity research which supports in getting research reports.
Mutual fund research support: Mutual fund is a third party product of the company. An investor can get regular updates on the schemes, daily updates on performance. It also acts as ready-made material while going to the clients. Customized reports and services are also available on special request.
Business Development Officer will be appointed: For the easy steps of a partnership process in every area, a business development officer is appointed by the broker for each sub-broker.
Attractive revenue sharing ratio: The revenue sharing ratio is lucrative on all products offered by the broker to attract the business partners and to motivate them to generate more revenue.
Convenience: To connect with the broker is a very easy and convenient process for the clients. A few and simple steps will connect you with the broker to get details of the partnership business.
SHCIL Franchise Revenue Sharing Model:
SHCIL Services is running its broking business for a long time. So, the broker knows relatively well about how important clients are for a company. So, SHCIL shares a very lucrative revenue sharing ratio with its business partners.
As the company is a brand name and can be trusted easily, it gives 40%-60% of revenue to the business partner. It means you have a chance to earn up to 60% of revenue generated.
This sharing ratio can be negotiated on the basis of revenue generated and the security deposit.
The above ratio is in line with the industry. It may be higher or lower also depending on how your discussion/negotiation goes with the broker executive.
SHCIL Franchise Security deposit
In order to start a partnership business with SHCIL services, as mentioned above, you are required to deposit some security money with the broker. The range of security deposit is ₹1,00,000 – ₹3, 00,000. The security money is refundable when the sub-broker decides to exit from the agreement of SCHIL services.
The sub-broker is also required to deposit some non-refundable security deposit.
The non-refundable security deposit is used by the broker in those cases when a business partner will not be able to pay any miscellaneous amount demanded by the broker, the membership charge of BSE and NSE, money required for the set-up of sub-brokers office and infrastructure etc.
SCHIL Franchise Registration
By following the below mentioned steps you can become a partner of the broker.
The step is to fill your basic information in the form available on the website. You can either fill it online or offline. Here is the form for your reference:
A verification call will be given to verify your interest.
You will get another call by the broker’s executive to make you understand about the business models. An appointment will be fixed with the executive for further details.
You can clear all queries related to the partnership business, they will give you information about all terms and conditions of the company.
You will be asked to submit all required documents with the initial deposit cheque for verification.
After verification, you will get an account ID.
Now you are ready to start your partnership business and take home the attractive revenue share.
The whole process will take almost 6-10 days to complete.
SHCIL Franchise Advantages
A business partner of SHCIL services will get the following advantages:
An old name in broking business.
A government stockbroking company, thus, one can trust the company easily.
Provides regular research and reports to the clients and business partner.
Free Demat account offered.
One can easily get service and become a business partner of the broker through its wide offline presence all over India.
Provides full investor support in required time zone.
Robust IT solution support.
Provides security of data and risk management.
SCHIL Franchise Summary:
From the above discussion, it is clear that the broker SCHIL services is in the broking market from the last 28 years and made a strong relationship with the market players. One can easily trust this broker if want to start a business in broking field.
It offers only one business model with an attractive revenue sharing ratio and security deposit in line with the industry. So, if you want to start a broking business with an experienced broker who helps you at every step of your new business, you can choose SCHIL Securities without thinking too much.
In case you are looking to get started with sub-broking or franchise business in the stock market industry, let us assist you in taking the next steps forward:
More on SHCIL
For more information on SHCIL, here are a few references for you: