Reliance Capital enters retail broking space
Reliance Capital announced its foray into the brokerage business through Reliance Money which will offer 'fixed' flat fee structure.india Updated: Apr 11, 2007 17:12 IST
Reliance Capital on Wednesday announced its foray into the brokerage business through Reliance Money which will offer 'fixed' flat fee structure.
The company said it will offer highly competitive rates based on the flat fee structure instead of the contemporary system where investors pay brokerage fees (percentage) for each transaction conducted in the stock markets.
Reliance Money, promoted by Anil Dhirubhai Ambani Group firm Reliance Capital, would offer the brokerage services across 700 cities including Delhi and Mumbai through 3000 outlets.
Investors would need to pay brokerage at the rate of 0.05 per cent for delivery trades and 0.005 per cent for non-delivery trades (fixed fee of Rs 500 for delivery trades up to Rs 10 lakh and/or non-delivery trades up to Rs 1 crore), the company said.
Industry rates vary between 0.4 per cent to 0.85 per cent for delivery trades and between 0.05 per cent and 0.10 per cent for non delivery trades, it added.
Reliance Money consumers can trade in equities, commodities and offshore investments , IPOs, mutual funds besides insurance, money transfer and money changing - all through single window, both off-line and online.
The company has already tied-up with UK's CMC Capital Plc to offer offshore investment products to Indian consumers as per RBI guidelines.
Reliance Capital is targeting the retail investors who invest less than 3 per cent of their household financing savings into equity markets.