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How To Become A Sub Broker in India? A Comprehensive Guide

how to become a sub broker in india
how to become a sub broker in india

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Are you in the same boat and wondering how to become a sub broker in India? For those interested in exploring opportunities in the stock market industry, understanding the concept of sub brokership is crucial.

The stock market has been gaining enormous popularity in India lately, with millions of common people opening Demat accounts in the first half of 2021. Moreover, both ordinary people and institutional investors are prohibited from directly trading. Therefore, it’s advisable for common people to open a Demat account with a trusted stockbroker like SMIFS Limited.

Stock brokers are SEBI registered centers which enable us to trade in the secondary market.

As more people wanted to trade in the stock markets, the concept of sub-franchises emerged. These sub-franchise (now called authorized person) helped the stock brokers handle the growing number of clients.

sub-broker makes sure that more clients join the online brokerage bandwagon and receive help creating accounts and choosing investments. Sub-broker opportunities are now more abundant than ever.

For ambitious business owners looking to venture into sub-brokering, understanding “how to become a sub-broker in India” is essential. However, navigating this process might seem challenging without clear instructions.

What do we mean by a sub-broker?


how to become a sub broker in india?


A sub-broker serves as a liaison between clients and stock brokerage firms. Although they don’t belong to stock exchanges, they help with the purchase and sale of securities. They assist clients in making investment decisions and carrying out transaction execution under the license of a registered broker.

Typically, a sub-broker works with a larger brokerage firm, taking advantage of its infrastructure and resources. They develop a clientele, and assist clients with securities transactions respectively. The sub-brokers/authorised person earn commissions or fees from these transactions (made by his/her clientele).

Moreover, the sub-brokers needs to follow rules set by regulators (SEBI & the stock broking firm they are linked with). Thus, guaranteeing a strict adherence to market regulations and moral behavior.

What are the roles and responsibilities of a sub-broker?

what are the roles and responsibilities of a sub- broker

Below, we have enlisted the roles and responsibilities of a sub-broker.

Client Acquisition & Management

The main responsibilities of a sub-broker is to draw in new business and manage client investment portfolios skillfully. They also take into account the financial objectives, risk tolerance, and investment preferences of each customer to provide individualized attention.

Giving Investment Advice

A sub broker provides tailored investment advice to its customer, based on market research and his/her investment needs. This include suggesting appropriate stocks, bonds, or other assets to assist customers in reaching their financial goals.

Enabling Trade Executions

Sub-brokers help execute trades through the broker they work with, but they can’t make deals on their own. Putting buy or sell orders on behalf of customers falls under this category.

Sustaining Client Relations

Establishing and preserving solid, dependable connections with clients is essential. This entails maintaining regular contact with market movements and portfolio performance.

For sound customer relations, an authorized person is responsible for solving all queries of the client.

Ensuring Compliance

Sub-brokers must abide by regulatory obligations and ethical standards established by SEBI. Adhering to these regulations is necessary to maintain reputation and operate lawfully.

Staying Aware of Market Trends

An authorized person should stay informed about emerging investment products, economic conditions, and financial markets. Sub-brokers are able to deliver the most precise and pertinent advice because of their continuous education.

What are the advantages of being a sub-broker?

Earning Potential

With a growing clientele, sub-brokers have the potential to make profits by earning commissions on the transactions they assist with. Depending on the number and value of trades they handle, successful sub-brokers can make a substantial living.

Creating a Personal Network of Clients

Being a sub broker allows you to personally get to know your clients. In addition to being personally and professionally fulfilling, it entails offering specialized financial advice and services that promote enduring customer loyalty and recommendations.

Support from Brokerage Firm

Sub-brokers who are affiliated with a reputable brokerage firm receive vital support. They receive support in the form of research, administrative help, and trading platform access. With this support, they can better service their clients and expand their business.

Ongoing Learning and Development

This position necessitates keeping abreast of industry developments and legislative modifications. Thus, which promotes ongoing professional growth. This feature ensures that sub-brokers keep their skills sharp and stay competitive, making their services more valuable.

Flexibility and Independence

Although sub brokers are overseen by a brokerage firm, they can run some aspects of their business independently.

Regulatory Compliance and Credibility

Customers frequently choose to collaborate with experts that uphold high ethical and legal standards, which fosters dependability and confidence.

What are the qualifications required to work as a sub-broker?

The eligibility criteria for working as a sub-broker include meeting and fulfilling certain requirements.

Authorized individuals must register under the name of a registered broker because they are not members of stock exchanges. This would give them instant access to the trading platform, goods, and services offered by the broker. Additionally, association with a well-known brand like SMIFS Limited, will make it easier for a sub broker to win over customers.

sub-broker must meet very basic qualifying requirements.

eligibility criteria for bring an authorised person

  1. The minimum educational requirement is 10+2. Anybody over 21 years old with knowledge of the financial market can become an authorized agent.
  2. A few years of relevant job experience, or at least a rudimentary awareness of the market, is required.
  3. Operating the trading platform and managing a client’s account would require computer proficiency.
  4. Successful client interactions require effective communication skills.
  5. Understanding economics, politics, and finance is important for the stock market, so it’s good to have some basic knowledge about these subjects.
  6. According to the regulation, individuals authorized to trade in the stock market must pass basic NIMS modules covering stocks, mutual funds, commodities, and F&O.




Crucial information that all sub-brokers need to know to expand their business

Develop Your Clientele

You must have a solid clientele if you want to succeed in business. You can start by making a list of people you know who are interested in stock investing. This may include, friends, family, neighbors, coworkers, and relatives.

This creates an organic database. Utilizing social media platforms like Facebook, Instagram, LinkedIn, and so on, you may also target potential clients;

Engaging with Prospective Clients and Current Customers

an authorized person must regularly meet and interact with ones clientele. This enables to build ones business.

Moreover, it can be hard to get new customers and convince them to work with you if you don’t hold regular and suitable meetings. In order to create a lead pipeline for an agency, prospecting is crucial.

Provide your clients with news about new investment opportunities, rule and regulation changes, or forthcoming stock releases. By taking care of your clients, you may gain their trust and develop a stream of new business. You can email them on a regular basis with offers, news, and other information.

Increasing Knowledge through Courses

You need to keep up with the most recent developments in the stock market. You can sign up for any of the exchanges’ many short- and long-term courses.

You can also sign up for SEBI’s investor education programs. Attend training and seminars held by your brokerage company, and keep up with research reports and stock market news. Investors prefer agents who are well-informed and can offer good advice.

Launch a cold calling campaign

  sub-broker talking to his clients

One should do this to attract new clientele. This is a crucial aspect of the sub-broking industry. To keep your business going and growing, you must occasionally bring on new client.

What is the difference between stock broker and a sub-broker?

A stockbroker operates independently, while a sub-broker acts as a link between the main stockbroker and clients. The main job of a sub-broker is to help expand the business network of the original stockbroker.

Stockbrokers are typically also Depository Participants (DPs) of either the National Securities Depositories Ltd (NSDL) or the Central Depositories Securities Ltd (CDSL), which hold stocks and securities in electronic form. However, sub-brokers cannot be DPs.

In terms of registration, stockbrokers must be registered with the SEBI. Sub-brokers used to be registered as well, but since August 2018, the SEBI has discontinued this category. Instead, they are now known as ‘Authorized Persons,’ appointed by a stockbroker to provide trading platform access.

Regarding revenue sharing, sub-brokers have various responsibilities, entitling them to a higher share of revenue from clients. Although the main stockbroker receives a smaller portion, they benefit from the overall revenue generated by numerous sub-brokers.

Knowing the difference between a stockbroker and a sub-broker is therefore crucial when investing in the stock market. Each contributes differently to the way stock markets operate. Both their variances and some commonalities exist. Be sure to always rely on a dependable and trustworthy financial partner when starting your stock market investment. To invest in various stock market alternatives, look for features like an all-in-one trading platform, brokerage cashbacks, and 0% Demat AMC for a maximum of 12 months.


In India, becoming a sub-broker presents a viable route into the exciting world of the stock market. We have looked at the steps and requirements needed to become a sub-broker through this detailed guide. Those who wish to start a profitable sub-brokerage business can do so by selecting the best sub-broker franchise model and submitting the required paperwork and payments.

Knowing how to become a sub-broker in India now that you have the knowledge, you can choose a career that will enable you to make a nice living through commissions.

In the Indian stockbroking scene, SMIFS Limited provides one of the greatest sub-broker franchise structures. Some of the special benefits of working with SMIFS are as follows

  • a reliable brand name,
  • an easy-to-use tab-based advice platform,
  • 𝐔𝐩𝐭𝐨 𝟖𝟓% 𝐁𝐫𝐨𝐤𝐞𝐫𝐚𝐠𝐞 𝐒𝐡𝐚𝐫𝐢𝐧𝐠
  • Timely Payout
  • Customized Brokerage
  • Mobile Trading App
  •  Online EKYC best-in-class research reports.

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