The Indian stock market has opened up several career opportunities beyond trading and investing. Starting from being a stockbroker to working as an advisor, the opportunities are truly endless.
One such opportunity is becoming an authorised person. It is one of the most lucrative roles that focuses on working with a registered stockbroker while increasing their client base and earning capacity. It is a structured and recognized way to enter the financial services industry without starting a brokerage firm of your own.
In this guide, we will walk through the role, eligibility, registration process, SEBI regulations, and the brokers that offer authorised person programs in India.
What Is an Authorised Person in Stock Broking
The stock broking industry works through a structured network that helps brokers reach investors across different regions. As an authorised person, you work in partnership with a registered stockbroker. The main aim is to support the client onboarding and trading activities.
In simple terms, you are an expert who is appointed by the broker to act on their behalf in specific business functions. This includes a series of steps like introducing a new client, helping them with the account, and supporting them with the investment plans.
The role does not involve owning a brokerage firm. Instead, the individual operates under the broker’s licence while expanding the broker’s client base. In return, the authorised partner earns a share of the brokerage generated from the clients they bring to the platform.
Eligibility To Become An Authorised Person
If you are trying to find an answer to how to become an authorised person, then you must first know the eligibility criteria. So, here are the key conditions to know:
- Minimum Age Requirement: The applicant must be at least 18 years old minimum when applying.
- Educational Qualification: Applicant should have passed higher secondary school to start with.
- Identity and Address Proof: A valid document such as an Aadhaar card, a passport, a voter ID, or other recognised address proof during verification.
- Financial Market Certification: Some of the platforms might require you to complete the course in advance. Others will help you to learn and then pass the exam.
- Clean Regulatory Record: The applicant should not have any history of financial misconduct, regulatory violations, or restrictions imposed by financial authorities.
Registration Process And Documents
Once you meet the eligibility criteria, the next step is to complete the registration process with a brokerage firm. The steps to be followed here are as follows:
- Choose A Registered Broker: The first step is to partner with a SEBI-registered stockbroker. Ensure to check this as these are the ones who are authorised to offer authorised person programs.
- Submit Application Form: You need to fill out the authorised person application form provided by the broker.
- Provide Required Documents: You must submit all the documents as needed. These usually include PAN card, Aadhaar card, address proof, photographs, and bank details.
- Sign Agreement With Broker: A formal agreement is signed once everything is in line. This will be between the broker and the authorised person. It will be the documents that share the details of the roles, responsibilities, and brokerage sharing.
- Exchange Registration: The broker submits the application to the relevant stock exchange for approval and registration.
- Receive Authorised Person Code: After approval, the exchange issues a unique registration code. Now, you are ready to start your financial journey.
SEBI Rules For Authorised Persons
The activities of authorised partners in stock broking are regulated by the Securities and Exchange Board of India and the recognised stock exchanges. These rules are as follows:
- Appointment Through Registered Broker: An authorised partner must be selected by a SEBI-registered stockbroker only. This is only when the same can operate in the market.
- Minimum Educational Qualification: The applicant must have completed at least the 10th standard from a recognised institution, though exchanges or brokers may set higher criteria.
- Mandatory Market Certification: The individual must hold a valid NISM or relevant segment-specific certification. This is required for working in the securities market.
- Single Broker Rule: An authorised partner cannot be appointed by more than one broker on the same stock exchange.
- Clients Registered With Broker: All clients must be onboarded directly. These should happen under the broker’s name. It is a rule that the authorised partner cannot register clients independently.
- No Handling Of Client Funds Or Securities: The authorised partner is not allowed to handle client money or securities. All transactions must take place directly between the client and the broker or clearing entities.
- Broker Accountability: The broker remains fully responsible for the actions and activities carried out by an authorised person in relation to clients and exchange regulations.
- Mandatory Agreement and Compliance: A formal agreement must be signed between the broker and an authorised person, and both parties must follow SEBI and exchange guidelines on KYC, disclosures, and client grievance mechanisms.
Brokers Offering Authorised Person Programs In India
Many brokerage firms in India offer partnership models where individuals can work as an authorised person. Some well-known platforms that offer authorised person or similar partner programs include:
| Platform / Broker | Type Of Support | Key Highlights |
|---|---|---|
| Choice Connect | Multi-product platform, onboarding tools, partner support | Allows partners to offer multiple financial products |
| Angel One | Training, marketing support, trading platform | Strong digital onboarding and nationwide partner network. |
| Motilal Oswal Financial Services | Reports, guidance, and advisory | Established franchise model with strong brand presence. |
| ICICI Securities | Brand backing, product training, tech platform | Integrated system that helps with better connect. |
| Sharekhan | Investor education, marketing assistance | Long-standing broker with structured partner programs. |
How To Choose The Right Broker
When you are planning to start your journey, here are a few points that will help you find the right broker:
- Look for a reliable platform that offers you connectivity and technology.
- Seek for a platform that helps you with training and certifications.
- Ensure the revenue sharing model is profitable.
- Continuous training and development can be a great part as well.
- Reputation will help you get clients easily.
- Wide product range will help you with expansion.
Income Potential For Authorised Persons
The income of an authorised person largely depends on the number of clients acquired, their trading activity, and the brokerage sharing arrangement with the partner broker. As the client base grows, the earnings potential can increase steadily over time.
Typically, authorised partners earn a percentage of the brokerage charged on trades executed by their clients. Many brokerage firms offer revenue sharing that ranges between 40 percent and 70 percent, depending on the partnership structure and trading volume generated.
For individuals exploring how to become an authorised person, this model offers the opportunity to build a recurring income while gradually expanding a long-term client network in the stock market.
Conclusion
Becoming an authorised person is a practical way to build a career in the stock market without launching a brokerage firm. By partnering with a registered broker, you can start on the right foot.
For those exploring how to become an authorised person, the key is choosing the right platform. This is where Choice Connect can help. It offers you tools, support, and all the best resources that can help you grow well.
FAQs
1. How to become an authorised person in the stock market in India?
To become an authorised person, you need to partner with a SEBI-registered broker. Once done, complete all the requirements like documents and exams, and you will be ready to start working.
2. Is certification required to become an authorised person?
Yes. Most brokers require applicants to hold a valid NISM certification relevant to the market segment before they can operate as an authorised person in the securities market.
3. Can an authorised person work with more than one broker?
No. Exchange rules generally do not allow an authorised person to work with multiple brokers on the same stock exchange.
4. What services can an authorised person provide to clients?
An authorised person can help clients open trading accounts and access trading platforms. They support them with market participation through the broker’s services.
5. What documents are required to register as an authorised person?
The common documents you need are a PAN card, identity proof, address proof, bank details, and photographs. You will also need the relevant financial market certifications.
