As stock market participation grows in India, so does the demand for investment facilitators. If you’re looking to build a career in the stockbroking ecosystem, becoming an Authorised Person is one of the most accessible and regulated ways to get started. While the term “sub broker” was more common in the past, the Securities and Exchange Board of India (SEBI) has now replaced it with the designation of Authorised Person for those working under trading members of stock exchanges.
Here’s a complete guide on the requirements for becoming an Authorised Person in India, and how it compares to being a sub broker in India.
Who is an Authorised Person?
An Authorised Person is an individual or entity appointed by a trading member (a SEBI-registered broker) to act on their behalf in providing trading access to clients. They can open demat accounts, assist in trading, offer advisory services, and help clients invest in IPOs, mutual funds, and more.
Think of it as the modern-day sub broker in India, with tighter regulations and better clarity in roles and responsibilities.
Eligibility Requirements to Become an Authorised Person
To register as an Authorised Person with a stock exchange (like NSE or BSE), you must meet certain eligibility conditions:
✅ For Individuals
- Must be a citizen of India
- Should be at least 18 years of age
- Must be 12th pass or higher from a recognized board or university
- Should not have any criminal or regulatory conviction
- Basic knowledge of the stock market is recommended
✅ For Entities (Firms, LLPs, Companies)
- Must be registered in India
- The key person representing the entity should meet the individual eligibility requirements
- Must have the infrastructure to conduct business (office, internet access, etc.)
Documents Required for Registration
Here’s a general list of documents you’ll need:
- PAN Card and Aadhaar Card
- Educational qualification certificate
- Proof of address (residence and business)
- Passport-size photographs
- Business registration documents (for firms/companies)
- Bank statement or cancelled cheque
- An agreement with the trading member (broker)
Once submitted, the broker will forward your application to the exchange (NSE/BSE), and after verification, you’ll be issued an Authorised Person certificate.
What About the Sub Broker Commission?
As an Authorised Person, you’re entitled to earn a sub broker commission, which is essentially a revenue share from the brokerage generated by your clients. This can range from 50% to 75% depending on your agreement with the broker and the volume you generate.
The higher the trading activity from your clients, the greater your monthly payout. Some brokers also offer bonuses, incentives, and commissions on other products like mutual funds and insurance.
Advantages of Becoming an Authorised Person
- Low entry barrier with minimal investment
- Recurring income through sub broker commission
- Brand leverage by partnering with reputed brokerage firms
- Support and training provided by most brokers
- Ability to build a client-centric business at your own pace
Final Thoughts
If you’re looking for a structured and profitable way to enter the stock market business, becoming an Authorised Person is an ideal path. Whether you’re an aspiring entrepreneur, a finance enthusiast, or someone with a strong local network, this role offers great income potential through sub broker commission, while working under the regulatory framework of SEBI and leading exchanges.
