Thursday, December 5, 2024

Everything You Need to Know About Becoming an Authorised Person in India

Date:

Share post:

In today’s digital age, becoming an authorised person in India’s financial markets offers exciting opportunities. As the landscape of investing evolves, with share market apps in India gaining popularity, the role of authorised persons has become increasingly important. These individuals or entities, regulated by SEBI, act as intermediaries between stockbrokers and investors, providing crucial services such as order placement and advisory support. In this article, we’ll cover the roles and responsibilities and a step-by-step guide to becoming a sub-broker and the requirements for aspiring authorised persons in India’s dynamic securities market. 

Roles and Responsibilities

Just like any other profession even an authorised person has to perform certain roles and responsibilities. Having an understanding of these responsibilities would help you gain insight into what your day as a sub-broker might look like.

Customer Onboarding

This is one of the basic duties of a sub-broker, they have to identify and acquire potential clients that are interested in trading and investing. They present the benefits of associating with their brokerage firm, assess the client’s financial objectives, and persuade them to open an account.

Customer Activation

Sub-brokers are essential in helping clients start their trading activities. They offer training, help clients familiarise themselves with the trading platform, and make sure that everything is in place for clients to start trading effectively. 

Customer Servicing

The role of a sub-broker doesn’t end with just onboarding and activating the customer. He/she also has to help them further with all the doubts and queries that they might have in the future. These include providing trading calls and resolving transaction issues.

Assistance with Opening an Account

The sub-broker is also responsible for opening trading accounts, this helps in smooth customer onboarding. They have to guide clients with all the steps to follow when opening the account which helps with quick and easy opening of accounts.

Providing Tips

To become an authorised person one must be qualified enough to provide tips to their clients. This means the person should be well-educated so that they can add value to their client’s investment and trading decisions. 

Well defined Research

To guide clients, the sub-broker must do his research first. The research might include going through the company’s financials for fundamental analysis. The broker must even do a technical analysis and review past performance for better understanding.

Order Execution

Another important duty of a sub-broker is to execute orders after getting confirmation from their clients. This usually happens in the case of traders or investors who are busy and don’t have enough time to track the stock.

Compliance with Regulatory Rules

Sub-brokers can’t make independent decisions. They need to follow the guidelines established by a stock exchange or the regulatory authority they’re working with. For this, they help the client with essential paperwork to ensure that the KYC is done.

Steps to Follow to Become an Authorised Person

When planning to become a sub-broker one must know the steps that need to be followed. This helps in the quick and correct arrangement of essential documents and fastens the application process. 

Select the Right Sub-broker Franchise Model

Initially one needs to research various sub-brokers available in the market. Research their franchise model and terms and conditions select the one that suits your needs the best. Understand how they operate and function and then select.

Understand the Eligibility Criteria

It’s essential to check the eligibility criteria offered by different broking houses. This helps with understanding which of them would suit you and will help you quickly qualify for the role. Therefore, look for broking houses that offer easy eligibility criteria.

Submit Essential Documents

Look for the process that requires minimal documentation as this will ease the process. Some essential documents that brokers ask for are a filled application form, a signed agreement, address proof, experience proof, etc. 

Submit Application

After you’ve submitted the essential documents and paid the fee. The brokers will ask you to fill in the application form and submit it too. Then they send your application to exchange and make payment for processing the sub-broker application form. 

Verify Documents

Carefully review all the required documents to ensure they meet the broking house’s specifications. One can do this by checking the accuracy of details they’ve provided, such as going through the identity proofs, the accuracy of details provided, etc. 

Registration Fee Payment

Once your documents are verified, proceed to pay the registration fee as asked by the broking house. This payment finalises your application and initiates the onboarding process, so ensure it is made promptly to avoid any further problems.

Obtain Registration Certificate

Once you’ve done the essential paperwork and made the fee payment. The broking house issues the registration certificate to you after essential checkups. This certificate acts as a proof of you being an authorised sub-broker.

Conclusion

To become an authorised person in India, one needs to know the roles and responsibilities in advance. Some of these are customer acquisition, customer servicing, assistance in opening accounts, etc. In addition to this one also needs to know the step-by-step process to become an authorised person. The steps include selecting the right sub-broker, understanding the eligibility criteria, submitting essential documents, verifying documents, etc. These are some of the basic things one should know about to become an authorised person in India.

Top Blogs