Given how quickly the Indian stock market is expanding, there appear to be countless possibilities for investors to make money across all industries. The considerable requirement for brokers and sub-brokers to facilitate stock market trading has increased due to this increasing interest and the creation of several startups in every specialty. Being a sub-broker is pretty easy given the abundance of options available, especially if you have the top brokerage business guiding you. Therefore, we will outline the processes for you in this post on how to become a sub-broker in India. But let’s start with the fundamentals.
Who is a Sub Broker?
A “Sub Broker,” according to the National Stock Exchange, is any individual who is not a trading member of a stock exchange but works as an agent or in another capacity to support investors in dealing in securities via such trading members. All stock Sub-Brokers must engage into an agreement with Trading Members, which must specifically outline each party’s rights and obligations. In order to engage in their business, the Sub Broker must first register with SEBI.
How to Become an Indian Sub Broker?
Step 1: Select Your Stock Brokerage Company
Selecting the broking franchise you want to work for is the first step in becoming a stockbroker in India. Making a decision about the sub-broker business model you’d like to use is crucial since it will affect many aspects of your daily operations, including incentives. Always be sure to consider the networking, experience, digital presence, and product offerings of the brokerage business in addition to the high incentives and assurance of growth. With these and several more advantages planned for its stock sub-brokers in India, Choice becomes an obvious choice in this regard.
Step 2: Document Requirements and Eligibility
The following step is to review the eligibility requirements, which are rather straightforward, and send all the fully completed pertinent paperwork requested to the stockbroking business you are interested in working with. In addition to the required paperwork, interested parties or companies must additionally include a processing fee and GST.
Step 3: Examining and approving the application
The stockbroker then pays the processing fee on your behalf and electronically submits your application to the National Stock Exchange for review and approval. The goal is to thoroughly examine your paper in case there are any errors or flaws. If so, the exchange would send your papers back for editing before resubmitting them.
Step 4: Register with SEBI
Once your sub-broker application has been approved, you must register with SEBI through your company for a predetermined price. If SEBI accepts your fee payment and registration, you will be given a sub-broker registration certificate and a unique registration number. As of right now, you are recognised as a sub-broker.
Required Documents to Become a Sub Broker
According to the most recent information, there are a number of particular papers that you must submit as scanned physical copies attached to their sub-broker registration application form in the manner described. According to NSE, these comprise:
- Proof of Address of the Applicant Entity (Trade Name): The address on the proof document must exactly match the address on the application you have filed. Acceptable pieces of identification include the most current telephone and electricity bills, a ration card in good standing, a passport, a driver’s licence, and a bank statement from a nationalised bank from the preceding month.
- If the applicant, partner, or director has qualifications below the HSC, then the proof of experience certificate is a prerequisite. For it to be accepted, you must show documentation of at least two years of experience working as an employee or dealer in the capital market in the name of an individual, a partner, or a director.
- A stockbroker and a sub-agreement broker’s
Today, several of the top stockbroking firms in the nation have their own sub-broking and partnership programmes for people interested in working as sub-brokers.