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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 a sub-broker in the share market.
If you’re wondering how to be an 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.
A sub-broking business is 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.
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 financial entrepreneurship.
Becoming an authorised partner is not that difficult. Below are the details you need if you are seeking an answer to the query how to be a sub broker:
Begin by studying the different Authorised Partner or franchise of stock broker models offered by various brokerage firms, including their revenue share, costs, support, and product range. Compare these options with your own financial capacity, experience, and business goals, and then choose the structure that feels most suitable for building a long-term sub-broker franchise.
After selecting a model, review the eligibility rules laid down by that broker and the basic standards followed in the industry. While each brokerage may have its own conditions, a few common requirements usually apply.
After you have a clear idea about how to get sub-brokership, gather all the documents. This usually includes the application form for Authorised Partner registration, the agreement with the stockbroking firm, and valid address proof such as a telephone bill, electricity bill, ration card, or passport. Along with these, you need to arrange the processing fee (for example, ₹2,000 plus applicable GST, as specified by the broker) to be submitted with your application set.
After organising the documents and processing fee, you submit them to the chosen stockbroker as per their process. The broker then forwards your details electronically to the exchange in the prescribed “Authorised Partner” request format, so that the exchange can begin reviewing your case.
The stock exchange examines your application and supporting documents to confirm that all requirements are met. If any gaps or mistakes are found, the exchange returns the file to the broker for correction, and you may be asked to update or resubmit specific documents before the process can move forward.
Once the exchange is satisfied and approves your application, you are required to pay the applicable SEBI registration fees through the stockbroker or as directed. After these fees are received and processed, SEBI issues your Authorised Partner certificate along with a unique registration number, formally recognising you as an intermediary authorised to facilitate trading in the stock market under SEBI Regulations.
Now that you know how to become a sub-broker in the stock market, you can go ahead and choose a profession that can allow you good earnings through commissions. IIFL Capital Services Limited offers one of the best Authorised Partner franchise models in the entire Indian stockbroking scene.
With IIFL Capital Services Limited sub-brokership, you 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!
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, the stock market sub-broker business 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!
