How to Become an Authorised Partner?

An Authorised Partner (formerly known as a sub-broker) is a promising independent venture for all those interested in the finance sector. Being an authorised partner actually means you’re collaborating with a well-established brokerage firm that lets you offer trading services to clients using their brand, platform, and support.

This career allows one to create his or her client base, expand financial knowledge, and get hold of significant earning potential in commissions. Dive into this informative guide to understand how to become an authorised partner in share market.

Who is an authorised partner?

If you’re wondering how to be authorised partner, it’s essential to understand their intermediary role in facilitating investor participation in the stock market. An authorised partner, also known as an authorised partner, is an individual registered with SEBI who represents a stockbroker and helps clients in buying and selling securities. Authorised partners play an important role in increasing the coverage of a broker, particularly in semi-urban and rural areas.

What is an authorised partner Franchise?

An authorised partner franchise is a business where an entity or person enters into a partnership with a brokerage firm. They then present investment services under the parent company’s umbrella. The clients will be able to link up with the trading platform, resources, and skills of the brokerage firm with the help of the authorised partner.

The profession of Sub-broking

Sub-broking is the act of being an authorised partner to a brokerage by acting as a local representative. The profession of authorised partnership bridges the gap between clients and the overall financial markets. Authorised Partners offer advisory services tailored to clients, facilitate trading, and build client relationships, thereby offering a supportive role in clients’ investment journey.

Authorised Partners, with client management skills and market expertise, play a pivotal role in enhancing accessibility to trading services. This profession is relatively very flexible, offering great potential earnings based on commissions from the activities of trading clients, which is a valuable path in finance entrepreneurship.

Steps to Become an Authorised Partner

Becoming an authorised partner is not that difficult. Below are the details to be followed:

1. Select a model that suits your authorised partner franchise

To get started, you must research and assess the various available authorised partner franchise models stock brokers offer. Review the business models of all those franchises and choose the most appropriate one according to your requirements and goals.

2. Qualification criteria

Review the authorised partner eligibility criteria after you have selected a franchise model. Although the eligibility criteria for authorised partners differ with every brokerage firm, the basic qualification requirement remains the same. They are listed as:

  • The person should have completed secondary studies (10+2) as per SEBI’s regulations. However, the higher the studies, the better the chances of a successful sub-broking business.
  • Must have basic knowledge of the financial markets, such as the Demat account, trading account, the stocks’ buying and selling process, and knowledge about other financial transactions.
  • The individuals should have good communication skills to onboard clients and add them to the online brokerage business.
  • Must have technical knowledge of operating online trading platforms.

3. Document requirements

Gather all the documents, including:

  • Form of application for authorised partner registration
  • An agreement between a stockbroking firm
  • Documentary proof of address (a telephone bill/ electricity bill/ ration card/ passport)
  • The processing fee of ₹2,000 plus GST should be paid to the stock broking house along with the documents.

4. Application submission and payment

Once you send your documents and processing fee, the stockbroker should electronically send the ‘Exchange Your Request for an authorised partner’ form that will be processed on your behalf so they can make an advance payment.

5. Document scrutiny

The exchange will carefully scrutinise the provided documents. The exchange shall forward the application form and documents to the stockbroker for correction and subsequent resubmission upon identifying any issues or deficiencies.

6. SEBI registration fees

After the exchange approves your application forms, you have to pay the relevant registration fees for SEBI’s stock broking house. A stockbroker, on your behalf, will pay the fees to an exchange. This is how you complete sub-broker partner registration, also known as authorised partner and comply with the SEBI Regulations. On receipt of the registration fees, SEBI will issue you an authorised partner’s certificate and a unique registration number. The authorised partner’s certificate would be an official recognition, making you an intermediary authorised to trade in the stock market.

Conclusion

Now that you know how to become an Authorised Partner in India, you can go ahead and choose a profession that can allow you good earnings through commissions.

IIFL Capital offers one of the best Authorised Partner franchise models in the entire Indian stockbroking scene. By choosing IIFL Capital Services Limited as a business partner, you also get to enjoy several other benefits, such as a high revenue-sharing model, personal assistance, personalised branding, investor awareness programs, and access to a robust back-office infrastructure and risk management systems. As an authorised partner with IIFL Capital Services Limited, you also get access to an extensive product range that includes not only equities and mutual funds but also NCDs, bonds, and other insurance products..

Become a Partner & Earn up
to 1 Lakh* per Month!

By continuing, I accept the T&C and agree to receive communication on Whatsapp

Frequently Asked Questions

As sub-brokers are not trading members, they can not charge a brokerage. However, they are given a commission on the total transaction value done by their clients. There is no cap on the amount of commission a sub-broker can earn.

Yes, you can trade through your Demat account and own capital and realise profits like a normal retail investor.

You can apply for getting a certificate from the National Institute of Securities Market (NISM). You will have to clear an exam including modules such as equities, commodities, mutual funds etc.

For those having adequate knowledge of the financial market and client management, a sub-broker or authorised partner career may turn out to be rewarding as it can provide high earnings through commission, flexibility in operations, and scope to garner perennial relationships with clients.

There is no prior training is mandatory to become an authorised partner. However, having a basic understanding of the stock market, trading platforms and financial instruments is highly beneficial.

Become a Partner & Earn up
to 1 Lakh* per Month!

By continuing, I accept the T&C and agree to receive communication on Whatsapp

Become a Partner & Earn
up to 1 Lakh* per Month!