Reliance Cap plans kiosk network for retail broking

MUMBAI: The Anil Ambani-owned Reliance-ADAG group’s financial services arm Reliance Capital (RCL) plans to set up a large kiosk network of 25,000 CDMA-enabled machines as part of its foray into retail broking. Investors can use a Reliance money card to conduct transactions. The broking business is likely to be launched next year.

In a seminar organised by JM Morgan Stanley on ‘India Financial Services’ and held in Singapore and Hong Kong, RCL discussed various future plans of the company.

RCL is also planning to go for a flat fee structure for its broking business, in line with the global practice. The company will charge customers a flat monthly fee, depending on the quantum of transactions conducted per month. According to market sources, in India, brokerage is charged as a percentage of transaction value and so, RCL’ flat fee structure, if implemented, will be for the first time in the country.

“Flat free structure has been successfully implemented globally. The structure will mainly benefit those who plan to do broking business on a large-scale basis,” said Alok Churiwala, director, Churiwala Securities.

As part of its broking plans, RCL is planning to offer online trading facility, with the help of which investors can trade in three asset classes including stocks, commodity and forex. The company is setting up a call centre, initially with 200 seats, to take orders on phone. It also has plans to distribute third-party wealth management products through the group’s distribution network.

At the seminar, RCL management laid down its strategy to become one of the largest financial intermediaries in the country. It is pursuing opportunities in four areas - asset management, insurance (both life and general), broking and consumer finance. Though most of the businesses have not been launched at the retail level, the company is building the distribution muscle to launch these businesses during the current financial year.