Tejas Khoday please give this below idea a thought. Today you give 3X leverage to option sellers on your platform, which will reduce to 0 in a few more months. See if this below idea is feasible. If feasible, this will good for both the broking house and clients.
Business: Fyers can fund margin requirements for option sell for its clients (only intraday orders and only indices and maybe few liquid stocks)
Process:
- Fyers NBFC (if you already have one) disburses a loan amount into my Fyers trading account. Loan can be against a pre-decided sanction amount basis account size, cibil score, etc.
- Fyers trading account only allows me to take intraday positions, along with compulsory stop loss
- End of the day, amount flows back to the NBFC
Benefits to Fyers:
- Nil risk product for the NBFC - Say I have my own collateral margin of Rs. 100, the NBFC gives me MTF of another Rs. 200. The trading terminal only let's me fire intraday orders with the MTF with stop loss defined such that max loss could be only Rs. 90. This way the NBFC's capital is never at risk and only the client's collateral component is at risk.
- Good spreads - It is an unsecured loan for the NBFC with virtually no default risk. the NBFC can build a solid book and make good NIMs (say charge 12-13% to the client annualized). Plus NBFC could also use the overnight float on the funds because client will need the money only from 9.15 to 3.30
- More flow to the broking business - will increase turnover to the broking arm. Also you could position this as a differentiated premium offering. Some clients would be willing to pay you a premium for this (say even a brokerage per lot basis vis-a-vis current brokerage per order)
Benefit to the Customer: Well, needless to say :)
Please give this a thought Tejas Khoday. I am reasonably sure certain bank brokers at least might be thinking along these lines to keep their intraday volumes alive.