In recent months, ICICI Direct has been removing a large number of sub-brokers, known as Authorized Partners (APs), without providing clear explanations. This abrupt action has caused anxiety among these partners, many of whom have spent years building their businesses with ICICI Direct. For many, it feels like their hard work and loyalty have been disregarded.
One sub-broker expressed the frustration felt by many, saying, “If ICICI Direct can treat long-term partners this way, how can clients trust them?”
Little to No Communication from ICICI Direct
Despite repeated requests for answers, ICICI Direct has not given any clear reasons for the terminations. Communication has been limited to brief, generic notices of termination with no real explanation. This lack of information has left many feeling like they are being dismissed without respect.
“I feel betrayed,” said one sub-broker who has worked with ICICI Direct for over 20 years. “I’ve poured my life into this business, and now I’m just being told I’m no longer needed. We deserve to know why.”
New Account Opening Rules Add More Challenges
To make things harder, ICICI Direct has introduced a new rule that requires every client opening a Demat account to also open a bank account with them. If a client doesn’t already have an ICICI bank account, they must go to a branch to open one, and that’s also where they complete their Demat account setup. This change has effectively removed sub-brokers from the account-opening process, making it even harder for them to keep their clients.
“This new rule is just making things worse for us,” said a frustrated sub-broker. “Now, clients who used to come to us are being sent directly to ICICI branches, where they open their trading accounts. It feels like they’re squeezing us out.”
Some clients, unhappy with the new requirements, are choosing to open accounts elsewhere, which hurts the sub-brokers even more.
Reduced Support for Sub-Brokers and Job Losses for ICICI Employees
Many ICICI Direct employees who used to support sub-brokers have been reassigned to other roles, leaving sub-brokers without the help they relied on. Some sub-brokers have even filed complaints with the Central Public Grievance Redressal System, but there has been no response from ICICI Direct so far.
“We’re real people with families who rely on us. These decisions affect our lives,” said one financial advisor. “ICICI Direct needs to understand this and communicate better with everyone involved.”
Ethical Concerns Surrounding ICICI Direct’s Actions
ICICI Direct’s recent moves have raised ethical concerns. Many sub-brokers feel that ICICI Direct is not acting fairly or respectfully, especially toward those who have spent decades building up their client bases. To make matters worse, even though ICICI Direct is ending partnerships with these sub-brokers, they will still earn revenue from the clients brought in by them.
As one industry observer pointed out, “If a broker can betray the people who brought them business, it makes you wonder if they could treat clients the same way. Trust is everything in this business, and right now, that trust is being broken.”
ICICI Direct Plans to Exit Mutual Fund Distribution
Adding to the uncertainties, ICICI Securities plans to exit its mutual fund distribution business, according to recent reports. This announcement has only increased the worry among sub-brokers and added to the overall sense of instability within the company.
Calls for Legal Action and Compensation
Frustrated sub-brokers are now considering taking legal action. “If ICICI Direct doesn’t address our concerns, we may have to go to court. They owe us for the years we spent growing their business,” said one sub-broker.
Another partner added, “We need to come together and demand answers and fairness. This affects our lives, and we won’t stay silent.”
Stopping Onboarding of New Authorized Partners
It’s also been reported that ICICI Direct has stopped onboarding new Authorized Partners, which has only made existing sub-brokers more worried. This suggests a major change in ICICI Direct’s approach, making sub-brokers wonder about the future of their businesses. More information can be found on ICICI Direct’s website, but many feel they’re being left in the dark.
Conclusion: A Call for Answers and Fairness
ICICI Direct’s recent actions have left many sub-brokers and their families feeling uncertain and anxious about their futures. Without clear communication, support, or respect for their years of dedication, many partners are speaking out. They are asking ICICI Direct to be accountable, to offer clear answers, and to treat them with fairness.
ICICI Direct needs to realize that these decisions affect real people, not just numbers on a spreadsheet. The company’s reputation and the trust of both partners and clients are at stake.
