IIFL’s 5Paisa.com becomes India’s 1st listed discount brokerage company
The company charges its customers zero brokerage and a flat fee of just Rs 10 per trade for any size of trade in stock trading – 98 per cent lesser than its competitors
Its Robo Advisory platform is also unique as it is completely algorithm based, enabling customized advisory services on the real-time basis without any human intervention and at a very affordable cost
Has an exclusive tie-up with world-class research company, the US-based Market Smith. The 85-year-old research company tracks more than 4,000 Indian companies.
by Prashant Kapadia/NHN
Mumbai 5Paisa Capital Ltd. – a 100 per cent subsidiary of IIFL Holdings Ltd. – today became India’s first online discount brokerage firm to be listed on BSE and NSE. 5Paisa announced debuted on the capital market with the traditional sounding of the gong on the National Stock Exchange (NSE).
Shares of 5Paisa, which are of face value of Rs 10 each, have been offered in the ratio of 25:1 to all the existing shareholders of IIFL Holdings. The parent company had earlier infused Rs 100 crore as fresh capital in the demerged entity.
5Paisa is one of the fastest growing and completely digital marketplace for financial products and services, which caters to the growing do it-yourself (DIY) customer segment that prefers the least intermediation costs. The company charges its customers zero brokerage and a flat fee of just Rs 10 per trade for any size of trade in stock trading. It also provides host of other services like Mutual Funds, IPO, Insurance, Robo Advisory and Research.
It is the first in its category to enable e-KYC based on Aadhar and Digital signature, and to make the account opening process completely online and paperless. The Robo Advisory platform of 5Paisa is also unique as it is completely algorithm based, enabling customized advisory services on the real-time basis without any human intervention and at a very affordable cost. This Robo advisory service is not just provided for stocks but also for mutual funds and insurance. 5Paisa has an exclusive tie-up with world-class research company, the US-based Market Smith. The 85-year-old research company tracks more than 4,000 Indian companies.
The company has managed to make a mark by taking a complete reverse approach of unbundling services in a bid to lower the end cost for customers. While the trading platform offered by 5 Paisa is much superior, its costs are almost 98 per cent lesser than its competitors.
Elaborating on the development, Mr. Nirmal Jain, Founder and Chairman, IIFL group, said, “Listing of 5 Paisa conforms to IIFL Group’s practice of maintaining high standards of corporate governance and ethical business practices while offering best in class services to customers at an affordable price point. This way, we have managed to become the first digitally disruptive business offering financial services to have institutionalised the platform and ensured complete transparency and ethical practices. Listing brings the much-needed transparency in working, great degree of compliance and gives retail and institutional investors an opportunity to participate in the growth by buying shares of 5paisa.com.”
Mr. Prakarsh Gagdani, CEO, 5Paisa.com, added, “5Paisa has made its mark by democratising the entire investing process through offering unique solutions, which are customized, completely paperless, easy to use and at an extremely low and affordable price point. Our objective is to emerge as a complete digital marketplace for all financial products including Equity, Derivatives, Mutual Funds, AIFs, Bonds & Debentures, Insurance, Personal Loans, Research & Advisory, Portfolio services and other financial products DP and margin trading. The listing gives us the much-needed scale to realise our dreams.”
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