HDFC Securities, the wholly owned stockbroking subsidiary of HDFC Bank, has confirmed that it has decided to close its franchisee business, while denying any compliance issues. The firm clarified that the decision was initiated earlier this year as a strategic step to streamline operations and enhance service quality, and not due to compliance issues as suggested in rumours circulating on WhatsApp and social media.
"We are aware of inaccurate messages circulating on WhatsApp and social media that suggest HDFC Securities is closing its franchisee business due to compliance issues," the company said.
"We want to clarify that our decision to pause partnerships was a strategic move made earlier this year to streamline operations and enhance service quality rather than being related to compliance concerns," it added.
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The brokerage firm said that it remains focused on consistent growth across its business lines, including its low-cost broking platform HDFC SKY, and its investment advisory service HDFC TRU. "HDFC Securities continues to demonstrate consistent growth across all business lines. We remain committed to delivering high-quality financial solutions and appreciate the trust and support of our clients and stakeholders," the company added.
Earlier, last month, HDFC Securities announced the launch of its new Wealth Advisory offering, aimed at catering to High-Net-Worth Individuals (HNIs), Ultra-High-Net-Worth Individuals (UHNIs), Family Offices, and Corporate Treasuries. The move comes as the brokerage, with over 20 years of experience and a client base of more than 5.7 million across its digital platforms and 250+ branches, seeks to expand its service portfolio to address the growing demand for wealth advisory solutions in India.
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