5paisa
5paisa Capital Limited is an Indian discount stockbroker incorporated in 2007 (as IIFL Securities Services Limited) and structured as an independent entity after a demerger from the IIFL Group in 2016. The company is headquartered in Mumbai, Maharashtra, and is listed on the National Stock Exchange (NSE: 5PAISA) and Bombay Stock Exchange (BSE: 540776), making it one of the earliest Indian discount brokers with a separate equity listing. 5paisa positions itself as a technology-focused flat-fee discount broker offering equity delivery, intraday, futures and options (F&O), currency, and commodity trading at Rs 20 per order, competing in the same segment as Zerodha , Upstox , and Groww . The company also operates a robo-advisory product and mutual fund distribution platform. Its corporate parent from a promoter shareholding perspective is the IIFL Group, which separately operates IIFL Securities as a full-service broker.
Listing details: 5paisa Capital Limited is listed on NSE (5PAISA) and BSE (BSE code: 540776). The company listed through an IPO in April 2017 at a price band of Rs 360-375 per share, making it the first dedicated discount broker to complete an IPO on Indian exchanges.
Founding, demerger, and history
IIFL Group origins and the IIFL Securities background
The business that became 5paisa originated within India Infoline Limited, the financial services conglomerate founded by Nirmal Jain and R. Venkataraman in 1995. India Infoline, later renamed IIFL Holdings Limited, built a large retail broking franchise under the India Infoline Securities name with thousands of sub-broker and branch locations across India. By 2015-2016, the IIFL group was operating a full-service broking model with a broad research operation and franchise distribution alongside the Indiainfoline.com online platform.
The emergence of Zerodha as the market-defining discount broker by 2015-2016 created a strategic challenge for IIFL: the full-service model was losing new client share to flat-fee discount brokers, particularly among active traders. IIFL’s response was to separate the discount broking operations into a distinct entity rather than attempt to convert the full-service IIFL Securities brand entirely.
Incorporation and spin-off (2007-2016)
IIFL Securities Services Limited was incorporated in 2007 as part of the IIFL group’s technology and services infrastructure. The entity was subsequently restructured and demerged from IIFL Holdings as an independent discount broking company, rebranded as 5paisa Capital Limited. The name “5paisa” was chosen to connote extremely low-cost trading, a natural brand position for a flat-fee discount broker in a market where full-service brokerage was charged as a percentage of trade value.
The demerger completed in 2016. IIFL Holdings (the promoter entity, later renamed IIFL Finance Limited’s holding structure) retained a controlling stake in 5paisa Capital.
IPO and early listed history (2017-2019)
5paisa Capital Limited completed its IPO in April 2017, listing at the top of the Rs 360-375 price band. The IPO was notable as the first dedicated discount broker to list on Indian exchanges, preceding Angel One ’s October 2020 IPO and giving institutional and retail investors a direct way to invest in the discount broking segment. The IPO raised funds for technology investment, marketing, and working capital expansion.
Post-listing, 5paisa grew its registered user base and active client count, leveraging its IIFL group brand recognition and digital marketing. The company introduced robo-advisory features, goal-based investing, and a mutual fund distribution platform alongside its core trading services.
Karvy Stock Broking context (2019)
In November 2019, SEBI and NSE took action against Karvy Stock Broking Limited for the misuse of client securities held in Karvy’s pool account, pledging client shares without authorisation to raise funds for group companies. NSE cancelled Karvy’s exchange membership, and client accounts were transferred to other brokers. While 5paisa was not directly involved in the Karvy matter, the episode prompted heightened regulatory and client scrutiny of securities handling practices across all brokers. 5paisa, like other discount and full-service brokers, communicated to clients regarding its segregation of client securities and the custodial arrangements in place.
The Karvy incident led SEBI to subsequently tighten the regulatory framework for client securities, including requirements for running account authorisation, periodic settlements, and restrictions on broker use of client margins. These changes applied across the industry.
Growth trajectory (2020-2025)
5paisa’s active client count grew substantially during the COVID-19-era retail investing surge (2020-2021). The company’s total registered user count exceeded 3 million by 2023. The NSE-active client count, the industry benchmark, placed 5paisa consistently in the top 10-15 brokers nationally by 2024-2025.
SEBI’s F&O regulatory changes in 2024, which modified lot sizes, weekly expiry structures, and margin requirements, affected the entire industry’s F&O revenue; 5paisa, with its active trader focus, was exposed to these changes alongside peers.
Ownership and corporate structure
5paisa Capital Limited (CIN: L74999MH2007PLC289368) is a listed company under SEBI LODR regulations. The promoter group, comprising IIFL Finance Limited and associated entities holding via IIFL Holdings’ successor structures, held approximately 50-55% of 5paisa Capital as of available disclosures (consult NSE/BSE shareholding filings for current figures). Public and institutional investors held the remainder.
5paisa Capital’s principal operating entity is 5paisa Capital Limited itself, which holds the SEBI stockbroking registration. A subsidiary, 5paisa Wealth Management Private Limited, is the registered portfolio management entity.
Products and services
Equity trading
NSE and BSE equity delivery and intraday trading at flat Rs 20 per executed order (nil for delivery). Margin trading facility (MTF) is available for eligible stocks.
Equity derivatives
NSE and BSE equity F&O trading is fully supported. The 5paisa platform provides an option chain with basic OI and price data, and supports standard F&O order types.
Commodity derivatives
MCX commodity futures and options are accessible through 5paisa’s MCX broking membership, covering gold, silver, crude oil, and other exchange-traded commodities.
Currency derivatives
NSE and BSE currency derivative contracts are supported.
Mutual funds
AMFI-registered direct and regular plan mutual fund distribution is available. SIP, lump-sum, and systematic transfer plan (STP) modes are supported across all major AMCs.
Robo-advisory
5paisa’s robo-advisory product, 5paisa Smart Investing, provides algorithm-driven model portfolio recommendations. Clients complete a risk profiling questionnaire, and the system generates a recommended allocation across equity mutual fund categories. The portfolios are periodically rebalanced and aligned with stated risk tolerance, targeting first-time and goal-based investors rather than active traders.
IPO applications
ASBA and UPI-mandate-based IPO applications for mainboard and SME listings are integrated, consistent with standard discount broker IPO functionality.
Portfolio management services
Through 5paisa Wealth Management Private Limited, SEBI-registered PMS is available for qualifying clients above the Rs 50 lakh threshold.
Charge structure
| Segment | Brokerage |
|---|---|
| Equity delivery | Nil |
| Equity intraday | Rs 20 per executed order |
| Equity futures | Rs 20 per executed order |
| Equity options | Rs 20 per executed order |
| Currency derivatives | Rs 20 per executed order |
| Commodity F&O | Rs 20 per executed order |
Account charges (approximate; verify current schedule at 5paisa.com):
- Demat account opening: Nil (standard digital onboarding)
- Demat annual maintenance charge (AMC): Rs 300 per annum
- CDSL transaction charges at standard exchange rates
- STT, exchange transaction charges, SEBI turnover fee, stamp duty, and GST passed through at regulatory rates
SEBI’s September 2023 circular on true-to-label fee disclosure requires all applicable charges to be displayed at the order confirmation step. 5paisa implemented this requirement.
Technology platforms
5paisa app
The 5paisa mobile application (Android and iOS) is the primary trading and investment interface. The home screen presents a unified dashboard for trading, mutual fund SIPs, and IPO applications. Active trading features include an order screen with segment selection, a basic option chain, and portfolio monitoring.
5paisa web platform
The browser-based platform at app.5paisa.com provides the full trading and investment suite with charting tools and order management.
5paisa Trade Station
5paisa Trade Station is the enhanced trading interface targeting active equity and F&O traders, providing more information-dense layouts and charting tools than the standard consumer app.
5paisa API
5paisa provides a developer API for algorithmic trading and third-party integration. The API supports order management, portfolio access, and market data retrieval. The developer community around 5paisa’s API is smaller than those of Zerodha’s Kite Connect or Upstox ’s API but provides programmatic trading access for clients who need it.
Regulatory registrations
- SEBI stockbroker: INZ000007690 (NSE, BSE, and derivatives segments)
- MCX member: for commodity derivatives broking
- CDSL depository participant: for demat account and custody services
- AMFI-registered mutual fund distributor
- SEBI-registered portfolio manager: 5paisa Wealth Management Private Limited
- Listed company: NSE (5PAISA), BSE (540776), under SEBI LODR
Comparison with Zerodha
| Parameter | 5paisa | Zerodha |
|---|---|---|
| Listing | NSE/BSE (5PAISA) | Private |
| Brokerage | Rs 20 flat | Rs 20 flat |
| Robo-advisory | Yes (5paisa Smart Investing) | No |
| PMS | Yes (5paisa Wealth) | No |
| API | Developer API available | Kite Connect (full, mature) |
| Research | Limited | Varsity (educational) |
For a detailed comparison, see Zerodha vs 5paisa .
References
- SEBI SCORES broker registration, 5paisa Capital Limited (INZ000007690)
- NSE active client data, January 2026, National Stock Exchange of India monthly broker statistics
- 5paisa Capital Limited IPO prospectus, March 2017, SEBI EDGAR
- BSE corporate filings, 5paisa Capital Limited (BSE 540776), annual report FY2024-25
- NSE shareholding pattern, 5paisa Capital Limited (5PAISA), Q4 FY2025-26
- SEBI order in the Karvy Stock Broking matter, November 2019, NSE circular
- SEBI circular on true-to-label fee disclosure, September 2023
- SEBI F&O framework circular, July 2024
- AMFI distributor registration, 5paisa Capital Limited
- MCX member directory, 5paisa Capital Limited