What is a Franchisee?
- 4m0•
- 29 Apr 2023
Anybody who has a passion for the financial markets can consider becoming a brokerage franchisee. What is a franchisee? Here’s the lowdown:
Franchisee - Meaning
A franchisee assists investors and traders to trade in securities. To become a franchisee, you would need to get registered with the Securities and Exchange Board of India (SEBI).
As you explore ‘what is a franchisee’, there are some things to keep in mind. A franchisee is not a trading member of the stock exchange (also known as a brokerage company). Rather, they act as an agent on behalf of a trading member. In return for this service, the franchisee earns a commission from their clients. This commission is usually a percentage of the brokerage fee.
Are You Eligible To Become A Franchisee?
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You need to have passed the higher secondary board examination. However, graduates are often preferred.
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You must have adequate knowledge of the financial market and of financial transactions.
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You must have a certificate from the National Institute of Securities Markets (NISM).
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You must stay up-to-date with the latest news that could affect the stock market.
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You should possess excellent communication and management skills.
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You should be familiar with working on computers.
How To Become A Franchisee:
Clear the NSIM modules
These modules cover mutual funds, futures and options, equities, and commodities. Only after you clear these modules will SEBI allow you to conduct sub-broking activities. Upon clearing the modules, you will receive certification from NSIM.
Register with SEBI
Once you have NSIM certification, you can register with SEBI. Simply download the application form and submit it along with the required documents. You will have to make an initial deposit and pay the registration fee.
Tie up with a trading member
Once you have a certificate of registration from SEBI, register with the stock exchange. Next, choose a trading member to work with. Do your research and choose a company that has a good reputation. You can become a franchisee of a trading member by visiting their office or via their website.
Summing up
Hard work and perseverance go a long way in ensuring your success as a franchisee. It also helps if you pick the right trading member. Associating with a stable and reputed brokerage company like Kotak Securities is generally a good choice.
