Review Article on the Stockbroker SBICAP along with details of their History, Brokerage Charges, Products and Services Offered and Pros and Cons

SBICAP Securities Limited is one of the popular names in the stockbroking industry who are listed amongst the few large full-service stockbrokers who offer 3-in-1 account facility. It is the stockbroking arm of the SBI Group which is the leading group of the financial services provider with their presence for many decades. Due to its vast presence across the country and the globe, they have developed their customer-base quite well and that is the reason they have many customers availing financial services as well as the trading facilities with them. The SBI Group provides all facilities related to banking, insurance, mutual fund and other stockbroking services to its customers.   

The review article from Trade Brains is exclusively made available to you that will serve as your complete manual and will enable you to study the full-service stockbroking company from its beginning, the brokerage they charge, why you should consider trading through SBICAP, what are its drawbacks, what range of other products and services they offer apart from the stockbroking service and many more.  

About SBICAP Securities Limited

SBI Group is a well-recognized banking service provider in India that is in existence for many years. They formed a wholly-owned subsidiary under them named SBI Capital Markets Limited and ultimately under SBI Capital Markets Limited, SBICAP Securities Limited was formed in 2006 to provide stockbroking services to their clients. Currently, Mr Arun Mehta is the Managing Director and the Chief Executive Officer of this company. He had been associated with the SBI Group since 1985. The key focus of this company when founded was to provide primary and secondary capital market access to their clients within the group as well as in a public domain. Today, they enjoy a variety of customer type including retail investors, High Net Worth individuals, large corporates, NRIs, Financial Institutions, Foreign Institutional Investors, etc. They also provide online trading through SBISmart.com where both residents and NRIs can trade and invest online. Apart from the regular trading and investment products such as equity, derivatives, mutual funds, IPOs, ETFs and NCDs, they also offer lending services including home loans, car loans and loan against the securities. The company is a registered Depository Participant with NSDL and CDSL. 

SBICAP is spread across 115 branches in all over the country with their PAN India presence but they also have their presence outside the county too. This is the reason they are also able to provide offline trading services as well as in-person assistance. In addition to that, they also offer research and advisory services with fundamental and monthly reports along with top picks. With the leverage of financial service provider company as a parent, they also offer various financial distribution products along with insurance and other related services. They also offer educational training to their investors and traders to know the fundamentals of the stock market. They cover a wide range of educational information and transfer through various forms such as articles, videos, demos and tools & calculators. From the quality of Operations and Services point of view, it is graded BQ1 by the CRISIL which is the top-most grade where B stands for Broker and Q for Quality.

List of Charges: Brokerage and Transaction Charges, Account Opening Charges and Other Related Charges

Brokerage Charges:

SegmentDeliveryIntra-dayMinimum
First LegSecond Leg
Cash Market0.50%0.075%0.075%Rs. 0.05
Future0.05%0.03%0.03%Rs. 0.01
OptionRs. 100 per lotRs. 50 per lotRs. 50 per lot
Currency Future0.03%0.015%0.015%
Currency OptionRs. 30 per lotRs. 20 per lotRs. 20 per lot

Account Opening and DP Charges:

ServiceCharges
Account Opening Charges (Individual)Rs. 850 plus KRA Charges
Account Opening Charges (Non-Individual)Rs. 1000 plus KRA Charges
Account Maintenance ChargesRs. 500 (Rs. 750 for physical statement)
Additional Account Statement by courierRs. 30
Dematerialization RequestRs. 35 per request
Dematerialization – Extra for each certificateRs. 5
Rematerialization (per request)Rs. 35 plus Rs. 10 for every 100 securities or part thereof, or a flat fee of Rs. 10 per certificate whichever is higher

On-Market (Sell Market) / Off Market (% of the transaction value of each ISIN):

ServiceCharges
with POA (On Market Instructions only)0.01% (Min. Rs. 21 Max Rs. 300)
For instructions submitted through the internet0.01% (Min Rs. 21 Max Rs. 300)
For instructions submitted through Branches0.04% (Min Rs. 30 Max Rs. 50,000) Extra Charges Rs. 10 per ISIN for late submission
Rejection / Failed InstructionRs. 10 per failed instruction

Margin / Exposure

SegmentMargin 
Equity DeliveryUp to 8x
Equity IntradayUp to 12x
Equity FuturesUp to 8x
Equity OptionsUp to 8x
Currency FuturesUp to 5x
Currency OptionsUp to 6x

Pledge Creation / Closure / Confirmation / Invocation (% of value for each ISIN in each request):

ServiceCharges
If SSL / SBI is the counterparty 0.02% of Value or Min Rs. 25 whichever is higher (Plus CDSL charges)
IF SSL is not the counterparty0.04% of Value or Min Rs. 50 whichever is higher (Plus CDSL charges)

Call and Trade Charges:

  • Minimum Buy / Sell order value of Rs. 1000 (only in the cash segment) is accepted.
  • They offer 30 calls for free in a month after which Rs. 10 (plus tax) is charged per call.
  • Maximum 3 scrips can be enquired per call.

Key Features

  • SBICAP (SSL) is part of the most trusted bank of the country, State Bank of India, that has been into existence since 1955. 
  • They provide a quite precise brokerage and other charges which are simplified considering the public interest at large.
  • Their 3-in-1 account facility provides flexibility to clients to easily transfer and immediately make investment decisions without any hassle.
  • Their detailed quotes on stock analysis provide their investors with a deep insight into the fundamentals of the growth of a particular company that allows investors to justify their investment decisions.
  • They offer decisive screener facility where detailed information is analyzed and screened based on their customers’ needs that are filtered scrip-wise using the smart decisive screeners.
  • To enable their investors to make quick and easy investment decisions, SBICAP provides an exclusive service of Heat, Bubble and Financial Maps with which investors are enabled with the meaningful real-time financial and other information about companies and they can easily categorize them sector-wise and combine different holdings of their interest into one full map.
  • They offer Simplifies Investor Education through their Smart Institute where they conduct audio and video webinars regularly and post articles about fundamentals of the stock market.
  • Their availability of offline as well as online trading facility helps many customers decide on their own whether to get in-person assistance or to directly invest through online platforms.
  • Investors get an advantage of trading and investing with the ‘BQ1’ graded stockbroking services and operations for the quality that is graded by CRISIL.

Overview of What SBICAP Offers along with its Features

The products and services offered by SBICAP included in the wide range along with Insurance and Mutual Fund investments. Below is a brief of what all is offered by the full-service broking firm of the leading banking group SBI:

Products: They offer Equity, Derivatives, Mutual Funds, SIPs, Forex, Banking, Insurance and Currency under its variety of options to offer valuable products. They do not offer commodity trading. 

Services: Their Services include Demat and Trading account services, Intraday, IPO, Stock Recommendations and Portfolio Management Services. They also provide NRI trading facilities with 3-in-1 account available for them too and their global presence makes it easy for the NRIs to trade and invest with them.

Comprehensive Research and Analysis Tools: With the help of Smart tools, their research and advisory services are considered among the best services that include Research reports, Analysis tools and Calculators. Research reports not only provide company research but also offer peer comparison in an easy-to-understand format. Financial analysis tools and calculators use cash flows, assets and liabilities to make a financial plan for their investors. Their Smart Screeners analyze the scrips sector-wise with which investors are allowed to make an effective decision. The Basket of Golden Eggs is kind of a report where they provide an in-depth analysis of the big stocks that are trending currently.

Sbismart.com: This is a website providing online facility to trade and invest in the products and services offered by SIBCAP online. It is equipped with many tools such as decisive screeners, simplified education, Smart insight, Demos, Omni Channels and Maps and many more. Through Omni Channels they offer a wide range of in-class solutions for those who want to trade on their own.

Sbismart Mobile Trading App: With the facility to trade from anywhere, this app provides live quotes, real-time updates, market watchlist, research calls, scrip rankings and many more. 

Sbismart Xpress: This is a high-speed downloadable trading terminal with high-end features that offer live stock-market news, on-screen alerts, charting and quick trading experience. It provides easy and smooth trading experience to active traders who place orders frequently for daily and intraday transactions. 

Maps: Under this tool, SSL offers Heat Maps, Bubble Maps and Financial Maps that organize the information into a readable form. Heat Maps reduce the time taken to navigate to different real-time information and allows investors consolidate data sector-wise, combine information of holdings with real-time updates. Bubble Map provides a visual representation of financial information that helps in understanding the correlation between stocks and the percentage of change in the price of a scrip. Financial Maps provide an idea of the overall financial health of a company.

Decisive Screeners: It is a tool that helps investors filter tons of scrips based on the predefined key factors that many experts rely on. It helps investors find opportunities in the market using the personalized selection criteria.

Smart Institute: Through this, SSL provides extensive training on the fundamentals of the market for beginners and high-level knowledge for expert traders by way of audio, video webinar series, demos and many other tools and calculators. Under Simplified Investor Education, they also offer Smart Edutainment, Learning Room and Smart Insight.

Pros and Cons

Talking about the Pros and Cons of trading and investing with SSL, it should be noted that the below are the general Pros and Cons and it may be different from person to person as the need and requirement of each investor will change accordingly.

Pros: 

  • Investors get the best banking and broking experience by availing the 3-in-1 account facility and SSL being part of the leading and the most trusted SBI Group, serves Resident as well as Non-Resident Individuals.
  • The full-service broker offers a wide range of financial products as well as the trading products and services along with insurance services all under one roof.
  • Their specifically designed research and analytical tools are so well-equipped that any investor be it a beginner or an expert trader, can personalize these tools according to their specifications.
  • Smart Institute provides simplified learning experience with various tools such as learning room, demos, audio and video webinars, smart edutainment and smart insight.
  • Their online and offline trading facility offers ease of trading considering different needs of different investors. Those who wish to avail in-person assistance are allowed to do so under offline trading services and this is possible due to their PAN India presence.
  • Stock recommendations and Maps tool helps investors make effective decisions for their investments.
  • They offer analytical tools and calculators as well.

Cons:

  • They do not offer Commodity trading.
  • Brokerage charges are high if compared to the online discount brokers flat rates.
  • Poor customer care service is one of the challenges SSL faces since long.