Many people want to start a business in the stock market, but they do not have lakhs of rupees to buy a shop or stock. A Kotak Securities franchise looks like a good answer. You do not hold any goods. You help people open accounts with Kotak Securities and you earn a share of the brokerage they pay.
But the picture in 2026 is not the same as it was two years ago. The rules for partners are getting stricter. Growth in active traders has slowed. And many websites still use old or wrong numbers.
This guide gives you the facts in simple words. You will learn the real models, the cost, the rules, a fair earning example and the risks. We also show which numbers come from Kotak and which come from third-party sites, so you know what to trust.
Kotak Securities Franchise: Quick Answer
| Question | Short answer |
|---|---|
| What is it? | A partnership where you bring clients to Kotak Securities and earn a share of their brokerage |
| Legal name | Authorised Person (AP). “Sub-broker” is the old name |
| Initial deposit | Kotak’s own partner page says Rs 3 lakh for the franchisee model |
| Office | Kotak’s page mentions a 300 sq ft office for the franchisee route |
| Must-have exam | NISM certification (Series VII for operations and risk) |
| Income type | Commission only. It moves up and down with client trading |
| Revenue share | Not published by Kotak. Fixed in your written agreement |
| Can you work with two brokers? | Not for the same segment on the same exchange |
About the Kotak Brand: History, Services, USP and Current Market
History
Kotak Securities started in 1994. It is part of the Kotak Mahindra Bank which is one of the major private banks in India. When you become a part of Kotak Securities Franchise you are associated with a name which is over 30 years old. This will certainly come in handy when you’re introducing new clients to your brand as people believe in bank-backed brands.
Services Offered
Kotak Securities is a full-service broker. It caters to the clients who want to invest or trade in:
The clients can invest in stocks, F&O, mutual fund, IPO, ETF, currency, commodity, gold bond and NCDs, and also in NRI and corporate accounts.
Clients access trading on the Kotak Neo app and web platform, the Kotak Neo trading terminal and Kotak Neo trading APIs. They also receive research and resources, such as screeners and Kotak Insights.
USP stands for “What makes Kotak Special?
The parent is Kotak Mahindra Bank. This builds trust.
- One account with three services: Demat, trading and Kotak Mahindra Bank account!
- Research support: Clients get ideas and tools that new discount brokers may not give.
- Plenty of options: You can get started with no money or invest more later.
- Technology: The Neo platform and APIs are ideal for different types of traders, including beginners.
Current Market
India’s stock market has grown fast in the last few years. The number of young people with demat accounts has increased. In small towns such as Lucknow, Kanpur, Indore and Patna, many people are first-timers investing in the stock market. This is great news for those who are thinking of a Kotak Securities Franchise. However, there is a high level of competition as well. There is competition such as Zerodha and others with Angel One, Groww, ICICI Direct in terms of the same clients. Therefore, it’s a matter of putting in the effort of trust and service.
What Is a Kotak Securities Franchise?
A Kotak Securities franchise is a business tie-up with a stock broker. You are not a broker yourself. You work under Kotak Securities’ licence. You find clients, help them with account opening and answer their questions. Kotak does the trading work, holds the client’s account and sends the contract notes.
Franchise, Partner, AP and Business Associate: Are They the Same?
People use many names for the same idea:
- Franchise is the word most people search for.
- Authorised Person (AP) is the correct legal word.
- Partner or business associate are the words Kotak uses on its website.
- Sub-broker is the old word that SEBI removed in 2018.
So when you read “Kotak Securities sub-broker franchise” on a website, it usually means the AP route in practice.
How Do You Earn Money?
Every time your client buys or sells, Kotak charges brokerage. Kotak then shares part of that brokerage with you. That is your income. You do not earn from the government taxes or exchange charges that clients also pay.
Sub-Broker vs Authorised Person: What Changed
This is the most common confusion, so here it is in short.
- 2018: SEBI stopped the sub-broker category. No new sub-brokers could be registered.
- By 31 March 2019: Old sub-brokers had to become Authorised Persons or trading members.
- Registration route: An AP is not registered directly with SEBI. The broker applies to the stock exchange (NSE or BSE) for your approval.
- The job: Almost the same. You bring clients and support them.
- Who is responsible: The broker is responsible for what its APs do. That is why brokers are now checking APs more closely.
Kotak Securities Franchise Models
Kotak’s own partner page lists three ways to join. Other websites add more names and numbers, but those do not come from Kotak.
Model 1: Franchisee (Authorised Person)
This is the full business model. You run an office, bring clients and support them.
- NISM certification is needed.
- You must be approved by the exchange through Kotak.
- Kotak’s page states an initial deposit of Rs 3 lakh. One Kotak page also says the deposit is negotiable.
- Another Kotak page mentions an age of 21 or more, a school-leaving certificate and a 300 sq ft office.
Model 2: Coordinator (Referral)
You introduce people to Kotak. Kotak’s team handles all the market work after that. Kotak says you do not need a finance background for this model.
This fits well with the NSE’s 2026 proposal on referral-only people, explained below. Referral partners may not need AP registration, but they cannot give advice, pitch stocks or touch client money.
Features:
- No investment is needed, as per public reports
- The terms are decided by Kotak itself
- The transition from salary to business is a gradual one.
- Very well done to the bankers, dealers and relationship managers.
Model 3: Employee-to-Entrepreneur
This is for people who already work in finance, such as bankers, dealers or relationship managers, and want to start their own business. Kotak says its team will help you at each step. The terms are set in your agreement.
Features:
- No investment is needed, as per public reports
- The terms are decided by Kotak itself
- The transition from salary to business is a gradual one.
- Very well done to the bankers, dealers and relationship managers.
Models Compared
| Model | Best for | Money needed | Office needed | Exam needed |
|---|---|---|---|---|
| Franchisee (AP) | First-time business owners with savings | Rs 3 lakh deposit plus setup | Yes | Yes |
| Coordinator (referral) | Part-time people with a good network | Low or none | No | Not for pure referral, but ask Kotak |
| Employee-to-Entrepreneur | Finance staff leaving a job | Set by agreement | Usually yes | Yes |
Fact-check note: Many older blogs list a “Partner model” at Rs 10 to 15 lakh with 70:30 to 85:15 revenue share. We could not find this on Kotak’s official pages. One third-party site even shows 30 to 40% for a partner model. Treat these as unverified and ask Kotak for the exact terms in writing.
Kotak Securities Franchise Cost in 2026
The cost of a Kotak Securities franchise has two parts. The first is what Kotak asks for. The second is what you spend to run the business. Only the first part is official.
| Cost item | Amount | Source and note |
|---|---|---|
| Initial deposit | Rs 3 lakh | Kotak’s partner page. Ask if it is refundable and how it can be adjusted |
| NISM exam fees | A few thousand rupees | Check the NISM website for current fees |
| Office (about 300 sq ft) | Your own estimate | Rent or lease, furniture, internet, computers |
| Staff | Your own estimate | One helper may be enough at the start |
| Working capital | Plan for at least 6 months of costs | Early months bring little income |
| Marketing | Your own estimate | Visiting cards, local events, digital ads |
| Tax and CA fees | Your own estimate | Commission income is taxable. Ask your CA about GST |
Is the Deposit Refundable?
This is a key question. The deposit works as safety money for Kotak. If a client does not pay for a loss, Kotak may take that money from your deposit. So the line in your agreement about adjustment and refund matters more than the headline number.
Office Setup and Infrastructure Costs
If it’s an office-based model, then, you need a computer system, internet (plus back up) , a printer, a desk for your clients, and a clean board. For this, most public sources indicate that the cost would range anywhere from ₹50000 to ₹1.5 lakhs. Some sources even state that the sub-broker model requires approximately 5 employees. With smaller-sized groups you can begin with fewer people. Ask Kotak what it applies to you.
Hidden Costs Most Blogs Skip
- Time cost: You may spend 6 to 12 months building trust before income becomes steady.
- Compliance cost: Record keeping, call recording, CCTV and audits may need money or a part-time helper.
- Training cost: You must keep your NISM certificates valid.
- Cash gap cost: Brokers pay commission after the month ends, so you need cash to run the office meanwhile.
Eligibility, NISM Exams and Documents
Basic Eligibility Today
Based on Kotak’s pages and the current exchange framework:
- You should be 21 or older.
- You should have at least a school-leaving certificate (Kotak’s page mentions secondary school).
- You need valid NISM certification.
- You should not be linked with another broker for the same segment on the same exchange.
NISM Exams Explained
NISM is the National Institute of Securities Markets. Its exams show that you understand the market rules.
| Exam | Why you may need it |
|---|---|
| NISM Series VII (Securities Operations and Risk Management) | Core exam for APs. SEBI has been penalising brokers whose APs did not have it |
| NISM Series VIII (Equity Derivatives) | For futures and options work |
| NISM Series I (Currency Derivatives) | For currency segment work |
| NISM Series V-A (Mutual Fund Distributors) | To sell mutual funds |
| NISM Series XXIV (AML and CFT) | Proposed for APs who get a trading terminal |
Most people finish the Series VII workbook in a few weeks of regular study. Start the exam early because it speeds up your application.
Documents You Should Keep Ready
- Aadhaar and PAN card
- Address proof
- Passport-size photos
- Education certificates
- Bank account details and statements
- NISM certificates
- Office rent agreement or ownership proof
- Company or partnership papers, if you apply as a firm
New 2026 Rules: What Is Changing for Authorised Persons
This is the part most competitor blogs miss, and it may matter most for you.
On 6 August 2026, the NSE released a consultation paper on a new framework for Authorised Persons. It was prepared with the stock exchanges together with SEBI. Comments were due by 27 August 2026. The paper says these are proposals, not the final rules. We could not confirm whether they are final yet, so check the NSE and SEBI websites before you act.
What the Proposal Says
| Area | Proposed rule |
|---|---|
| Age and citizenship | Indian citizen, 21 years or older |
| Education and experience | 12th pass with at least 2 years of work experience with a broker or in the securities market |
| Net worth | At least Rs 5 lakh for individuals, Rs 25 lakh for firms and companies |
| Deposit with broker | At least Rs 1 lakh, and the broker can ask for more based on your business |
| Exams | NISM Series VII, a segment exam, and Series XXIV if you get a terminal |
| Terminal control | CCTV, face or biometric login, and location tracking |
| Fees from clients | An AP cannot charge clients. Pay comes only from the broker |
| Client money | AP cannot take money or securities in its own name |
| Trading on behalf | AP cannot take permission to trade for the client |
| AP must use an email ID with the broker’s domain | |
| Social media | AP must disclose handles used for client work, and the broker will screen them |
| Family | AP registration in the name of spouse, children or parents is not allowed |
| Referral-only people | No AP registration needed, but no advice, no stock tips and the fee must be disclosed |
What This Means for a Beginner
- The 2-year work experience rule could block people with no market background. If it becomes final, a pure beginner may need to start as a referral partner or work at a broker first.
- The net worth rule means you need to show your own savings and assets.
- Your bank and demat statements, social media and office will be checked.
- Brokers will watch APs with no business, and they may be phased out.
These changes can improve client safety, but they also raise your setup effort. Ask Kotak which rules apply to you today.
How to Apply for a Kotak Securities Franchise
Step 1: Pick the Right Model
Choose based on your money, time and market experience. Do not pick the biggest model just because it sounds good.
Step 2: Clear the NISM Exam
Register on the NISM website. Study the official workbook. A valid certificate saves time later.
Step 3: Use Only the Official Website
Go to the Kotak Securities official website and open the Partner or “Become Our Partner” section. Fill the enquiry form there. Do not pay money to any agent who says he is Kotak’s “special dealer”.
Step 4: Fill the Enquiry Form Honestly
Give your city, background, funds and the model you want. Clear details get a faster call.
Step 5: Screening and Office Check
Kotak’s partner team checks your profile. The proposed rules say brokers must verify your office in person, so keep your documents ready.
Step 6: Read the Agreement Slowly
Check the revenue share, deposit, refund, exit rules and what happens to your clients if you leave. Show it to a lawyer or CA before you sign.
Step 7: Exchange Approval and Launch
Kotak applies to the exchange for your approval. After approval and training, you can start serving clients.
Tips for Faster Approval
- Prepare papers in advance: Scan Aadhaar, PAN, address proof and certificates in advance. The most common cause of delay is that papers are lost.
- Uncleared NISM: Applications with a valid certificate get moved a lot quicker than those without it.
- Show your client network: Even a list of 30–50 people who trust you can help. Kotak is looking for partners who can offer the business.
- Select a clean office location: A clean shop that is visible in a busy area is professional. Maintain lease documents in your own name or in a rental document.
Kotak Securities Contact Number & Support
In this article, we do not have a phone number by design. Numbers are subject to rapid changes and bogus numbers on random sites are a favourite trick. Please follow these safe ways:
- Visit the official Kotak Securities website and click on Partner / Become Our Partner. The enquiry form is available.
- Please use contact information provided on the official website or official Kotak Neo app.
- Stop by the nearest Kotak Securities branch office and request for the partner or business associate team.
How Much Can You Earn? Brokerage Sharing Explained
Your income comes from the brokerage that your clients pay. Kotak does not publish a fixed share for partners. The share is written in your agreement and may depend on the model and your business size.
What Brokerage Do Kotak Clients Pay?
Plans change often, so check the live page. Here is what Kotak’s Trade Free plan page for Kotak Neo showed when we checked:
| Item | Rate shown on Kotak Neo page |
|---|---|
| Account opening | Free |
| Equity intraday | Rs 10 or 0.05% per order, whichever is lower |
| Equity delivery | 0.20% after the first 30 days |
| First 30 days | Zero brokerage on delivery and intraday |
| API orders | Zero brokerage |
Other Kotak pages and review sites show different numbers, such as 0.25% for delivery on older pages. They also mention a Youth plan with zero brokerage for people under 30. This tells you something important: if many of your clients sit on free or low plans, your share can be very small. Ask Kotak how your share is worked out on discounted plans.
A Simple Earning Example
This is an example, not a promise.
Say you have 100 clients who trade actively. Each pays Rs 500 brokerage in a month. Total brokerage is Rs 50,000.
| Your share | Monthly income |
|---|---|
| 50% | Rs 25,000 |
| 60% | Rs 30,000 |
| 70% | Rs 35,000 |
Now take away your costs. Suppose rent is Rs 10,000, one helper is Rs 15,000 and other costs are Rs 5,000. That is Rs 30,000. At a 50% share you lose Rs 5,000 a month. At 70% you keep Rs 5,000.
The lesson is simple. You need many truly active clients, not just many accounts.
The Active Client Problem
Market data shows why. In August 2026, India had about 237.7 million demat accounts, but only about 46 million active clients on the NSE. That is an active ratio of 19.3%. So only about 1 in 5 accounts trades regularly. If you open 100 accounts, only 20 or so may trade often.
Typical Income Stages (Our Estimate)
- Months 1 to 3: Very low income. You are building trust and opening accounts.
- Months 4 to 12: Income grows if you keep clients active, but it may not cover costs.
- Year 2 and later: A steady business needs many active clients. Do not trust blogs that promise a fixed monthly income.
- Quiet markets: When markets are dull, trading drops and so does your income.
Average Monthly Earnings Potential
No one can guarantee your income. The income of a Kotak Securities Franchise is determined by the number of customers in their franchise and the amount of their trading. Here are some preliminary concepts.
- Starting phase: Very low income, Month 1-3. You are just starting to open accounts and establish trust with the people you’re dealing with. You may earn only ₹5,000 to ₹25,000 per month.
- Month 4–12 (growth phase): With around 100–200 active clients, gross income of ₹40,000 to ₹1,50,000 is possible. Note, the money spent must be paid from this.
- From year 2 (stable phase): A successful partner can earn ₹2 lakhs or more per month. Top partner blogs can earn more than ₹20 lakhs a year, which is a best case scenario, not an average.
- Hurt by quiet markets: When the markets are dull or falling, people do not trade. These months can see a drop in income by as much as 30-50 percent. Set aside some savings for them.
ROI & Break-Even Period
The table below is only an illustration. We are assuming that you make the monthly profit in net profit as indicated. You may have a stronger or weaker case.
| Model | Investment (approx.) | Assumed monthly net profit after costs | Estimated break-even |
| Refer & Earn | ₹0 | ₹3,000 – ₹15,000 | Immediate |
| Authorised Person | ₹3 lakhs | ₹25,000 – ₹50,000 | 8 – 14 months |
| Sub-Broker (old name, full setup) | ₹5 lakhs | ₹40,000 – ₹70,000 | 8 – 15 months |
Brokerage Rates by Asset Class
Your income is determined by your clients’ brokerage. Kotak has undergone several changes to its plans, so please refer to the official Kotak website to see the present rates. According to Kotak’s Trade Free Plan page, the standard rates are as follows:
- Equity delivery: Approximately 0.20% of the value of the trade in the plan displayed. Other websites also refer to a youth plan where there is no delivery brokerage for the younger ones. Plans vary, please check the current plan.
- Equity intraday: As per plan page, ₹10 per order or 0.05% whichever is lower. There are certain plans that have zero intraday brokerage in some comparison websites.
- Other charges: In addition, STT, exchange charges, SEBI fee, stamp duty and GST are also levied on the clients. These are not part of your share.
The Indian Market in 2026: Is It a Good Time?
The Good News
- Demat accounts reached about 237.7 million in August 2026, up 1.4% from July, as per a 360 ONE Capital report.
- NSE unique registered investors crossed 13 crore in 2026.
- More first-time investors are coming from smaller cities.
The Careful News
- NSE active clients stayed around 45.5 million for the first seven months of 2026 and were about 3.6% lower than a year earlier in July.
- Account growth is faster than active trader growth.
- Big names like Groww, Zerodha, Angel One and ICICI Direct compete hard for the same clients.
- Zero-brokerage plans leave less money to share.
So the market is large, but the easy growth phase is slowing. A partner who builds real trust and gives good service has the best chance.
Benefits of Partnering with Kotak Securities
- Bank-backed name: Kotak Securities is part of the Kotak Mahindra group, so clients find it easier to trust.
- Full product range: Stocks, F&O, mutual funds, IPOs, ETFs, bonds, commodity, currency, NRI and corporate accounts.
- Technology: The Kotak Neo app and web platform, plus free trade APIs.
- Research: Clients can use research tools and stock ideas.
- No stock to hold: You do not buy or store goods.
- Choice of models: You can start with a lighter model and grow later.
- Support: Kotak’s team supports partners with training and onboarding.
Risks and Compliance Rules You Must Know
1. Income Is Not Fixed
Your earning depends on client trading. Dull markets can hit you hard in the first year.
2. SEBI and NSE Are Watching APs Closely
This is not just talk. In October 2026, SEBI fined VCK Share and Stock Broking Rs 2 lakh. The inspection found five APs working without the required NISM Series VII certificate and terminals operated by people not approved by the exchange. In July 2026, SEBI also fined Eastern Financiers Rs 4 lakh for AP supervision gaps, including an AP who moved to an unregistered location.
The broker pays the fine, but the broker can then act against you. A mistake can cost you your registration.
3. Never Touch Client Money or Logins
- Clients must send funds directly to the broker.
- Never take client passwords.
- Never trade on a client’s account on your own.
- Never let an unapproved person, like a family member, use the terminal.
4. Never Promise Returns
Guaranteed profit claims are illegal and can end your career. Explain risk clearly, especially for F&O, where many retail traders lose money.
5. Your Deposit Can Be Adjusted
If a client leaves unpaid dues, your deposit may be used. Read the exit and refund terms.
6. You Cannot Charge Clients
You should earn only from the broker. Do not charge clients any fee as an AP.
Franchise Scam Red Flags
Fake “franchise agents” target people who search for this topic. Be careful if someone:
- Asks you to pay a “registration fee” to a personal account
- Says he is a Kotak “special dealer” or “direct contact”
- Promises fixed monthly income or guaranteed profit
- Pushes you to sign in a hurry
- Does not give a written agreement
- Uses a free email ID instead of an official one
Always start from the official Kotak Securities website. We have not added a phone number here because numbers change and fake ones spread fast.
Kotak vs Other Broker Partner Programs
Compare at least three brokers before you decide. Numbers are not listed because they change, and many third-party lists are old. Ask each broker for its written terms.
| Broker | Type | What to ask before choosing |
|---|---|---|
| Kotak Securities | Bank-backed full-service broker | Deposit refund, revenue share on free plans, support, exit terms |
| Zerodha | Large discount broker | Partner terms, client support and share structure |
| Angel One | Large retail broker | Deposit, tier structure and training |
| ICICI Direct | Bank-backed broker | Deposit, revenue share and brand rules |
| 5paisa | Discount broker | Starting share and how it changes over time |
| Yes Securities | Bank-linked broker | Deposit, share and support |
Remember you cannot hold AP codes with two brokers for the same segment on the same exchange. So choose with care.
Who Should and Should Not Join
A Kotak Securities Franchise May Suit You If
- You already have a network of people who trust you
- You can pass NISM and follow rules strictly
- You can handle 6 to 12 months of low income
- You enjoy teaching beginners about money
Think Twice If
- You need a fixed monthly salary from day one
- You plan to promise returns to win clients
- You want to use client logins to “help”
- You have no savings beyond the deposit
Questions to Ask Kotak Before You Sign
- What exact revenue share will I get, and does it change with client plans?
- Is the Rs 3 lakh deposit refundable, and when?
- In what cases can you adjust my deposit?
- What happens to my clients if I leave or you end the contract?
- Which of the new AP rules apply to me now?
- What training and support do I get, and who is my contact?
- Are there any monthly or yearly fees from me?
- How and when is commission paid?
Conclusion – Is Kotak Securities Franchise Worth It?
If you enjoy meeting people, know the market and have a patience spirit, then a Kotak Securities Franchise may be for you. Requires not a lot of cash as compared with most businesses. It is accompanied by a popular bank name. Not just that, but it has models ranging from zero investment to ₹15 lakhs.
You’re going to need to start small, our simple advice. The referral model is your starting point if you’re out of pocket. If you have ₹3 lakhs and a network, then go for the Authorised Person model. For someone with more experience in finance and more money to invest, check out the Partner option. Before signing, request the final terms on paper and verify on Kotak’s official website.
More Franchise Options:
FAQs
How much does a Kotak Securities franchise cost?
Kotak’s partner page says the franchisee model needs an initial deposit of Rs 3 lakh. You also pay for NISM exams, office setup and running costs. Lighter referral models need much less money. Ask Kotak for the exact figures in writing.
Is it called franchise, sub-broker or Authorised Person?
The legal word is Authorised Person. SEBI stopped the sub-broker category in 2018. People still say franchise or sub-broker, and Kotak uses the words partner and business associate.
What qualification do I need?
Kotak’s page mentions age 21 or more, a school-leaving certificate and NISM certification. The exchanges have proposed stricter rules, including 2 years of work experience and a minimum net worth. These are not final as per the August 2026 paper we reviewed.
Which NISM exam is needed?
NISM Series VII is the main one. You may also need Series VIII for derivatives, Series I for currency and Series V-A for mutual funds.
What commission can I earn?
Kotak does not publish a fixed share. It is set in your agreement. Third-party websites show wide ranges, so do not rely on them. Your real income depends on how many active clients you have.
Do I need an office?
Yes, for the franchisee route. Kotak’s page mentions a 300 sq ft office. A pure referral model does not need an office.
Can I work with Kotak and another broker?
Not for the same segment on the same exchange. Check this before you sign.
Can I take client money or trade for clients?
No. Clients should deal directly with the broker. An AP should not take client funds or trading permission.
How long does it take to start?
It depends on your NISM exam, documents, Kotak’s screening and exchange approval. Having everything ready makes it faster.
Is a Kotak Securities franchise safe?
Kotak is a large, well-known brand, but the business has real risks: uneven income, strict rules and deposit adjustment. It is safe only if you follow every rule and read your contract.
