To start with few banks will ask for minimum amount to maintain to offer Third party FDR, few can start with 25lakhs and few more than that. So, FDR will be on NSCCL broker name, Bank need to give some letter in standard format addressing to NSCCL, so one has to submit this FDR and letter to broker and broker has to pass them to NSCCL. Also when one want to stop using FD as collateral they need to inform broker and in turn broker will inform exchange and they need to give back FD certificate along with no objection certificate, once broker received those he will pass those to client. All this is physical process, documents has to be collected manually and need to pass to exchange.
As I said few banks offer third party FDR only with minimum balance as it involves more work for them and few traditional brokers offers this and they start with minimum of 1 cr, not everyone. Traditional brokers offering this has business sense, they have physical presence across the country and they charge much higher as brokerage and in other charges.
Coming to us we are online broker who runs all operations centrally wholly backing on technology, also almost our client base is retail and very tiny % of our clients has crore or above to start with. We don’t offer different brokerage or leverage plans,keeping a simple structure along with technology( centralized/online/platforms) helped us reach to the spot where we are now.
So, as this is an offline process and it is operationally painful, we may not consider this till exchanges make this process online, also in the first place banks will allow third party FDR with minimum balance (HDFC 25 lakhs).
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