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What is Sub Broker Business? Requirements and Benefits

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A sub-broker is an individual or an organization that operates under a brokerage firm and provides all the services to its clients. The sub-brokers can also operate as authorized persons.

With every successful trading activity, the sub-broker receives a 50%-70% revenue sharing in the brokerage fees.

How to Become a Sub-Broker: A Step-by-Step Guide

Here is the step-by-step process to becoming a sub-broker –

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Qualification

  • Minimum of 18 years with 10+2 or HSC degree.
  • Candidate with a graduate degree is given preference.
  • Comprehensive understanding of financial markets and instruments.
  • Few other additional certificates/programs 
  • Among others, certification programs like BCSM (BSE certification on securities markets), NISM courses, and NCFM (NSE Certification in Financial Markets) will also provide leverage to receive approval for the applicant.

The qualification requirement is very less if you want to start Motilal Oswal Sub Broker.

Paperwork

Like any other application form, a certain set of identification and residency proof is required. For ID proof, you can submit an Aadhaar card, a PAN card, or a 10+2 diploma. 

For address proof, go ahead with utility bills. And finally, a letter of recommendation from a CA with a few passport-sized photos will complete the paperwork requirement.

Choose the right brokerage company

They are choosing the right brokerage firm to partner with makes much difference. Please do a thorough groundwork in understanding their business model and the revenue sharing terms. Also, check the pricing structure and brokerage fees they charge their clients, as all these factors will also determine your income level.

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Verify the necessary resources (financial and physical)

Verify in advance all conditions set by the brokerage business. Check to see whether you require a certain office space. 

Talk about the first investment as well. Last but not least, look into your broker’s commission schedule.

Share every document and pay the charge

Check-in for a follow-up call after submitting the papers to advance the conversation. Verify that the conditions are negotiated.

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Finally, you’ll need to pay the registration fee once your payment has been made.

Account Activation

The only thing to do is wait 5-7 days for account activation. Your broker may provide you and your staff training and instruction on trading platforms, customer service, and marketing strategies.

Benefits of the sub-broker business model

The sub-broker industry has gained attention recently since this franchising model offers a particular set of advantages:

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  • The main benefit of starting a sub-own broker’s trading company under brands like Angel One, Sharekhan, and many others is the ability to capitalize on brand recognition.
  • The broker house gives infrastructure. Thus, sub-brokers don’t need to invest in it to operate.
  • Business tracking and management systems with cutting-edge technology are available.
  • The most recent stock research reports are sent to sub-brokers, which aids them in advising customers on investments.
  • With little investment, they achieve high returns.

IIFL Franchise provides all the benefits provided here.

List of brokers with the best partnership models

Check out various parameters to find a good sub-broker provider –

THE BEST SUB BROKER COMMISSION

The top-ranked company on our list is Angel Broking, whose minimum revenue is 50% of gross sales and whose maximum revenue share is 70%. 

Based on the client’s work, it also provides various revenue-sharing options, with a potential payout of up to 90%.

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HIGH SUB-BROKER REVENUE SHARE

With SHAREKHAN FRANCHISE, you may earn 50% of the income for the smallest investment, while sub-brokers who spend up to Rs. 100,000 can get up to 75% of the revenue.

BROADEST SELECTION OF PRODUCTS

ICICI Direct, Angel Broking, Kotak Securities, and Motilal Oswal are the four stock brokers that control this parameter. To their clients and sub-brokers, these brokers provide a wide variety of goods.

MINIMAL REQUIREMENT OF A SECURITY DEPOSIT

Angel Broking and Nirmal Bang are taking the top spot in this category once more. The next-placed trio is Sharekhan, SMC, and Karvy. 

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Then IIFL on the third and Kotak Securities on the fourth. Fifth, the sixth, and seventh place are Edelweiss, ICICI Direct, and Motilal Oswal.

SUPERIOR TRADING PLATFORMS

A significant impact has been made in this field by Kotak Securities. The nation’s top trading platform, Keat pro X, is well-known. 

Closely following in second place is Sharekhan’s Trade Tiger. Both of these trading platforms are favored by all sub-brokers and their clients.

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Conclusion

Regardless of how you approach the sub-broker industry, you can be sure that it is quite lucrative. This is due to the franchisor’s excellent organization and assistance.

When everything is used properly, you will generate much income and be the boss of your own company.

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Heana Sharma: A rising talent, Heana boasts 2 years of versatile content writing experience across multiple niches. Her adaptable skills result in engaging and informative content that resonates with a wide spectrum of readers.

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‘Dear Prachi’ Ad By Bombay Shaving Company Faces Backlash From Netizens , Here’s What The CEO Says

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'Dear Prachi' Ad Bombay Shaving Company Faces Backlash From Netizens , Here's What The CEO Says

Prachi Nigam, the Class 10 UP Board topper from Uttar Pradesh, was brutally trolled by social media users.

People are in disbelief at witnessing a young and intellectual child being trolled because of her facial hair.

Several notable personlities also came forward to support the teen by shutting down the trolls.

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While, many also congratulated Prachi Nigam for her exceptional performance.

In the wake of this, an advertisement surfaced on social media by Bombay Shaving Company, adding fuel to the fire.

Even though the intention of the advertisement was to support the teen, it was slammed by the public.

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The founder and CEO of Bombay Shaving Company Shantanu Deshpande took to LinkedIn and shared a picture from the topper’s newspaper advertisement.

In the caption, he wrote

“It was shocking to see the amount of hate targeted at a teenage girl who had topped an exam because of her facial hair. Our simple message to this amazing young woman with such a bright future. Love to see my team ooze class. No opportunistic sales, QR codes, nothing. Just a heartfelt message to a fellow Bae.”

The caption further reads,

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“Dear Prachi, they’re trolling your hair today, they’ll applaud your AIR tomorrow.”

It was the advertisement’s closing statement that fueled controversy and drew backlash from the public.

It stated,

“We hope you never get bullied into using our razor.”

Netizens’ Reactions

The post went viral within hours of its posting. Many netizens called it “disgusting” and “absurd.”

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One user wrote,

“This is a collective failure of your team. Hope they read each and every comment and reflect. Did no one in the team notice this problem? How disconnected are they from reality? This will leave a deeper scar on the girl than anything else, and I will always remember your brand for being an opportunist.”

While another commented, “Insensitive.”

“This is terrible, a huge mistake you made. This is bullying this woman on another, bigger level,”

wrote another. 

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“Classless and in poor taste… You don’t deserve more attention than this,”

one commented. 

What the CEO Has to Say?

Shantanu Deshpande described his caption as a small token of support for Prachi, and thus defended the ad.

His efforts to clear the air were in vain, as many netizens still found the company’s response via the ad lacking sensitivity.

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Bombay Shaving Company’s intention was to extend support for the topper. However, it ultimately led to more criticism and enhanced controversy.

Recently, the class 10th and 12th results were published by the Uttar Pradesh Madhyamik Shiksha Parishad. Prachi Nigam scored 591/600 marks and topped Class 10. She revealed that her aim is to crack the IIT-JEE and become an engineer.

Also Check: Sachin Sahoo: Bipolar Indian-Origin Man Shot Dead By US Police

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Gerber and Perrigo Face New Lawsuit Over ‘Store-Brand’ Infant Formula Pricing; All Pending Toxic Baby Food Cases Consolidated into New Class Action MDL

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Infant formula makers Gerber and Perrigo have been hit with a class-action lawsuit, which accuses the companies of artificially creating a shortage and jacking up prices for “store-brand” formula sold at Walmart, Walgreens, and other retailers.

The lawsuit was filed on Monday in federal court in Alexandria, Virginia. It accuses Perrigo of violating antitrust laws by collaborating with Gerber to prevent competitors from entering the market for store-brand formula.

Perrigo, one of the nation’s largest suppliers of store-brand formula, sells its products under retail labels at prices lower than similar branded products. However, the lawsuit alleges that Gerber, by granting Perrigo the first right of refusal to Gerber’s excess formula supply, which could have been sold to other competitors, is engaging in practices that stifle competition.

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The lawsuit claims that through this arrangement, Gerber agreed to keep its excess formula out of the store-brand market, thereby gaining a share of Perrigo’s profits. The lawsuit was filed by four residents of California, Illinois, Michigan, and Pennsylvania, who will represent millions of customers who have purchased store-brand baby formula. The lawsuit does not name formula retailers as defendants. It asks the court to intervene and end the anticompetitive deals between Perrigo and Gerber and seeks more than $5 million in monetary damages.

This lawsuit is similar to another case filed in Brooklyn federal court by a potential store-brand competitor, P&L Development. Gerber and Perrigo requested the dismissal of that case, which was denied by the judge in February. The companies involved in the lawsuit claimed they compete fairly with other infant formula manufacturers, including those of store-brand formulas. The lawsuit also cited the squeezing out of P&L Development from the store-brand market, which has led to higher prices.

Gerber is also facing numerous lawsuits accusing its brands of baby food of containing dangerously high levels of toxic heavy metals, such as lead, arsenic, and mercury. These heavy metals are extremely toxic, even for adults, and can have catastrophic consequences on developing children, leading to health complications and neurological damage. Conditions such as ADHD and autism may be linked to consuming these toxic baby foods.

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On April 11, 2024, all the lawsuits pertaining to toxic baby foods, which had been filed at different times in various courts, were consolidated into a new class action MDL in the Northern District of California and assigned to Judge Jacqueline Scott Corley. Besides Gerber, other baby food manufacturers like Beech-Nut and Campbell Soup Co. have also been named as defendants.

Also Read: Leading Ethereum Blockchain Entity Files Lawsuit Against SEC, Requests Court Declaration That Token Is Not a Security

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Leading Ethereum Blockchain Entity Files Lawsuit Against SEC, Requests Court Declaration That Token Is Not a Security

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Leading Ethereum Blockchain Entity Files Lawsuit Against SEC, Requests Court Declaration That Token Is Not a Security

The legal wrangling between the crypto sector and the SEC, or the Securities and Exchange Commission, is getting uglier, with ConsenSys, a major protagonist of the Ethereum Blockchain, filing a lawsuit against the regulatory body in a Texas federal court. This legal action seeks an intervention to ward off a looming SEC lawsuit against the company regarding features of its popular MetaMask wallet. The lawsuit also seeks the court’s help in deciding once and for all the vexed question of whether Ethereum’s digital token, Ether, is not a security. The legal uncertainty hangs heavily on the crypto sector and puts a question mark on its very existence.

In an exhaustive 34-page legal filing, ConsenSys states that the SEC’s endeavor to exert control over Ethereum is both illegal and a threat to blockchain technology.

The complaint states,

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“The SEC’s unlawful seizure of authority over ETH would spell disaster for the Ethereum network, and for ConsenSys. Every holder of ETH, including ConsenSys, would fear violating the securities laws if he or she were to transfer ETH on the network. This would bring the use of the Ethereum blockchain in the United States to a halt, crippling one of the internet’s greatest innovations.”

The lawsuit also alleges that SEC Chairman Gary Gensler has embarked on an aggressive enforcement policy directed at the big players in the crypto sector like Coinbase and Uniswap. The lawsuit particularly points out a campaign that involved a deluge of subpoenas asking firms and developers for documents related to their dealings with the nonprofit Ethereum Foundation, which supports the blockchain’s development.

The crypto sector is up in arms against Gensler’s tactics and has contended that the SEC has never provided clear rules meant for the distinct features of blockchain technology. However, Gensler negates this argument, saying that the existing securities laws are clear and sufficient, and that the crypto industry refuses to comply with them.

Gensler’s actions are full of contradictions since, in the past, the SEC had maintained that blockchain’s tokens, like Bitcoin, are not securities and hence beyond its purview. A senior official in 2018 had stated that Ethereum has reached a state where it is adequately decentralized, and further, the agency also gave the green signal for the launch of Ethereum futures trading—an implicit acknowledgement that Ether is a commodity. However, at present, Gensler is using a recent feature of Ethereum, known as staking, as grounds for the recent legal campaign.

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The lawsuit was filed after the SEC issued a Wells Notice, which is akin to a formal letter warning that the agency intends to sue a firm and could lead to a settlement later. The SEC charged ConsenSys that MetaMask was operating as an unlicensed broker-dealer. MetaMask offered users a means to stake Ethereum on their behalf. Staking was a feature introduced in September 2022 on the Blockchain as a replacement for the energy-intensive mining process. The process involves a system of validators who pledge collateral to become trusted validators.

The SEC objects to the process of staking, which has changed Ethereum from a commodity into a security. ConsenSys founder Joe Lubin has called this account of the SEC “preposterous”.

Lubin said,

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“The act of staking is really just posting a security bond so you can get paid to contribute labor and resources to help operate the Ethereum protocol. Now they’re trying to turn that into some sort of investment contract.”

Lubin also stated that the SEC’s actions will lead to a halt in the growth of the crypto sector and blockchain technology as a whole. Lubin feels that the SEC seeks to block pending applications by companies to launch spot ETFs for Ethereum, following the huge popularity of Bitcoin ETFs. The SEC is in fact trying to regulate a technology on its merits and it will only stifle innovation.

Also Read: New Class-Action Lawsuit Accuses Rivian of Making Materially False and Misleading Statements

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