New Delhi: Anil Ambani is all set to enter stock broking business. He will set up R-Trade, a new stock-broking venture and has apparently approached mutual fund, insurance and small savings distributors to set up trading terminals at their offices.
R-Trade is believed to have roped in Bajaj Capital, which services five lakh investors and has over 100 branches in India.
Distributors say R-Trade wants to install a terminal in each office of a distributor it has tied up with. A terminal will be assigned a sub-broker code and the brokerage will be shared by R-Trade.
R-Trade will also set up trading terminals at Reliance Infocomm's WebWorld outlets.
Distributors say the WebWorlds will also sell pre-paid R-Trade cards, which can be used like debit cards to facilitate cashless transactions.
But its officials could not be reached for comment on their plans. The brokerage is expected to make its debut in June.
Distributors say R-Trade will charge an investor Rs 500 for six months or Rs 100 to trade for a month. R-Trade will pay the distributor Rs 100 for a client that signs on for six months or Rs 25 to Rs 50 for those signing on for a month.
The industry norm is between 5 and 75 paise per Rs 100 and up to 2 per cent of a transaction value on delivery-based trades for squaring off, these rates vary from one to 10 paise per Rs 100 on high-volume trades.
Brokers say R-Trade's rates are bound to hurt the industry's margins.
Comments
0 comment