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Any business owner wants to grow their business. In the capital market, having an Authorised Person is essential. This individual acts as the bridge between the investors and the stock exchange. They also play a significant role in expanding the investor base. From having a promising earning scope, flexible working hours, access to advanced technological platforms and the non-requirement of any capital, being an Authorised Person has several advantages.
However, growing a business as an Authorised Person requires a strategic approach, proper understanding, and awareness of the market demands and regulatory guidelines. This article offers some critical suggestions on ways to grow business authorized person.
An Authorised Person or sub-broker is an intermediary between clients and stock brokerage firms. While they are not part of the stock exchanges, they facilitate the buying and selling securities. They support clients in making investment decisions and executing transactions under the license of a registered broker.
Typically, a sub-broker partners with a larger brokerage firm, utilising its infrastructure and resources. They build a client base and manage securities transactions for their clients. Sub-brokers/Authorised Persons earn commissions or fees from these transactions carried out by their clientele.
Additionally, sub-brokers must adhere to regulations set by bodies like SEBI and the stockbroking firm they are associated with, ensuring compliance with market regulations and ethical standards. Keep reading to learn the ways to grow business as an Authorised Person.
Individual investors cannot make direct investments in the Indian stock market. There are different stockbrokers through whom they need to operate. These stockbrokers function in a very active network of agents providing investment solutions to investors. These agents are called the Authorised Persons.
The Securities and Exchange Board of India (SEBI) designates an “Authorised Person” as any individual or group that SEBI-registered trading members or stockbrokers allow to represent them in client dealing and the provision of services pertaining to investments and trading.
Authorised Persons are a key part of the Indian capital market. Having an agency business is a profitable choice for those who want to become a business owner. The roles they play are:
An Authorised Person working for a stockbroker is mainly responsible for assisting them in maximising deals within their area. By finding a sizable number of investors interested in buying stocks and securities, he is in charge of boosting business volume.
Another important responsibility of an Authorised Person is to maintain the integrity of the capital market by stopping investors from providing the stockbroker with incorrect documentation.
Alongside the stockbroker, the Authorised Person maintains and indexes all the documentation pertaining to each transaction that flows through his table. They act in the client’s best interests regarding dividends, bonus rights, shares, and other assets. They also need to assist in exchanging documents flagged as faulty.
The Authorised Person helps clients make wise investment decisions. They offer their clients all the assistance they can to help them make the highest returns on their investments and invest in securities.
The following sections highlight seven tips to grow business authorized person.
Any successful company’s customer base is its foundation. The acquisition and retention of clients should be your top priorities as an Authorised Person. Your ability to create business value will determine how much money you make. Some basic strategies you can follow are:
As an Authorised Person, you will work under a stockbroker; therefore, finding the right one is critical. It takes research and understanding to find a reliable stockbroker. You can begin the process by contrasting each company’s business model. Stockbrokers differ in what they require in terms of initial security deposits and commission payouts, so be clear about the value you can provide and what you expect to earn.
Technology is essential for expanding your company’s reach and improving its efficiency. Adopt the newest tech innovations to maintain your competitive edge. These include:
Give your clients access to reliable online trading platforms with an intuitive user interface, real-time data, and analytics. As a result, they will be able to make wise investing decisions.
Provide a mobile application that enables users to track their investments, trade while on the go, and get market information. Mobile accessibility has the potential to greatly increase customer engagement and satisfaction.
Use a CRM system to keep tabs on customer preferences, handle client interactions, and offer tailored services. You may establish enduring ties with your clients with the aid of a CRM system.
You can operate your business out of a designated commercial space or from home. It is not always necessary to make a sizeable investment in the beginning. A standard office will suffice. Make sure you choose the spot wisely. This is because the stockbroker will equip you with banners, displays, and other marketing supplies when you sign up. Make sure the neighbourhood where you establish your office has a high concentration of the individuals who make up your target market. Otherwise, marketing efforts will be wasted.
There can be changes and fluctuations in the financial market. To maintain and expand your company, remain flexible and adjust to changing market conditions.
Keep an eye out for new trends, profitable ventures, and possible hazards by conducting frequent market research. Update your offers and plans with this knowledge.
To protect your clients’ capital and keep their faith, implement robust risk management procedures. Inform your clients about risk concerns and motivate them to choose wisely.
Remain open to using modern technologies and solutions that can improve your offerings and provide you with a competitive advantage. Always look for methods to get better and change.
You can enrol in SEBI’s investor education programmes. In addition, study research reports, follow stock market news, and participate in the broking firm’s agent improvement and training workshops. Investors want an experienced agent who can provide them with sound guidance.
Creating beneficial partnerships will enable you to reach a wider audience and provide your clients with more services. Work with top brokerage firms to utilise their assets, know-how, and research capacities. This could improve the level of services you provide to your customers.
Collaborating with mutual fund distributors and financial advisors is essential to provide your clients with an expanded array of investment choices and advisory services. Partner with fintech firms and tech suppliers to incorporate sophisticated trading instruments, data, and safety measures into your platform.
Retention of customers and business expansion depends on a satisfying customer experience. Concentrate on providing outstanding service at every touchpoint.
Keep your clients informed about fees, transactions, and changes in the market in a transparent manner. Give them regular updates on the performance of their portfolio and respond to their questions immediately.
Recognise each client’s requirements and provide tailored investment options. Consider their investing horizon, risk tolerance, and financial objectives when making suggestions.
Offer thorough customer service over various channels, including chat, email, and phone. Ensure the people in your support team are informed and quick to respond to client questions.
To grow your business as an Authorised Person, a strategic and multi-faceted approach is required. This combined client acquisition, constant upgradation, having a proper office space, using technology, and customer service. Two other essential factors are finding a reliable stockbroker and building profitable partnerships. Besides, being agile and responsive to market fluctuations will lead to long-term success.
1.What is the role of the Authorised Person?
Authorised Persons are people or organisations permitted by stockbrokers or trading members to act on their behalf and offer a range of services about trading and investing in securities. These services could include :-
2. Can an authorised person trade for himself?
If the Authorised Person is an LLP, a partnership firm, or a corporate body, then they can trade for themselves in their name or the name of their directors, promoters, and/or partners.
3. How to become an authorised person in SEBI?
Individuals aiming to establish a new business endeavour as an Authorised Person need to first get their firm registered. Everyone has to approach SEBI (Securities and Exchange Board of India) and acquire their separate registration certificates.
4. What is the difference between authorised person and sub broker?
Both an Authorised Person and a sub broker are important to promote securities trading and client services. Authorised Persons have a wider scape of operations and can be directly registered with SEBI. Sub brokers function under SEBI-registered organisations’ regulatory wings.
5. What are the roles and responsibilities of an Authorised person?
An Authorised Person’s basic duty is to assist in the enhancement of deals under his/their jurisdiction.
How to grow a stock broking business?
Keep your clients informed about upcoming stocks, regulation changes, or new investment opportunities. By nurturing your clients, you will gain their trust and build a steady stream of business.
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to 1 Lakh* per Month!
