Mumbai: Reliance Capital Ltd on 11 April 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, in which investors pay brokerage fees (percentage) for each transaction conducted in the stock markets.
Reliance Money will offer the brokerage services across 700 cities including Delhi and Mumbai, through 3,000 outlets. Investors will need to pay brokerage at the rate of 0.05% for delivery trades and 0.005% for non-delivery trades (fixed fee of Rs500 for delivery trades up to Rs10 lakh and/or non-delivery trades up to Rs1 crore), the company said.
Industry rates vary between 0.4% and 0.85% for delivery trades and between 0.05% and 0.10% for non-delivery trades, it added.
Reliance Money consumers can trade in equities, commodities and offshore investments, IPOs, mutual funds, in addition to insurance, money transfer and money changing.
The company has already tied up with UK’s CMC Capital Plc. to offer offshore investment products to Indian consumers as per RBI guidelines