Who is an Authorised Person (Sub-Broker)?

An Authorised Person (AP) or a Sub-Broker is an individual or entity appointed by a stockbroker to act on their behalf in assisting traders and investors with trading and investment services. The AP (Sub-Broker) is registered with SEBI through the stockbroker. The primary role of an Authorised Person is to manage client investments, expand the broker’s client base, and earn a commission on the transactions or services provided.

Who can become an Authorised Person (Sub-Broker) in India?

To become an Authorised Person (AP) or a Sub-Broker, an individual must meet the following eligibility criteria:

• Must be a citizen of India
• Must be at least 18 years of age
• Should have completed 10+2 education (or equivalent)
• Must possess basic knowledge of the Indian stock market
• Should have the infrastructure to handle client queries and support services
• Must not have any criminal record or history of financial misconduct

For entities:-

• A Partnership Firm registered under Indian Partnership Act, 1932
• A Limited Liability Partnership (LLP) registered under the Indian Limited Liability Partnership Act, 2008
• A Body Corporate registered under the Indian Companies Act, 1956

What is the main role of an Authorized Person (Sub-Broker)?

The primary role of an Authorised Person (AP) or a Sub-Broker is to acquire and assist clients on behalf of the stockbroker. They are responsible for facilitating the placement and execution of trades on stock exchanges.
In addition, an AP (Sub-Broker) is expected to:

• Conduct market research and analysis
• Build and maintain client relationships
• Ensure compliance with SEBI and other regulatory guidelines
• Provide regular reports to clients and the stockbroker, including portfolio performance updates, transaction summaries, and account statements

What is the basic qualification to become an Authorised Person (Sub-Broker)?

A minimum educational qualification of 10+2 (Class 12) is required to register as an Authorised Person (Sub-Broker)

Is it mandatory to have a trading and demat account for becoming an Authorised Person  (Sub-Broker)?

Yes, it is mandatory to have both a trading account and a demat account to become a partner (Authorised Person or Sub-Broker) with a stockbroker.

What are the benefits of being an Authorised Person (Sub-Broker)?

An Authorised Person or a Sub-Broker has the potential to earn commissions received from the stock-broker. The number of clients is an important factor in determining the earning potential. The higher the number of clients an Authorised Person (or Sub-Broker) handles, the greater the income enjoyed by them.

What are the preferred/must-have criteria for becoming an Authorised Person (Sub-Broker)?

An aspiring Authorised Person (or Sub-Broker) should have the following skills and competencies: -

• Good knowledge of how the financial markets work and operate
• General knowledge of the economy (including the micros and the macros)
• Persuasion skills and business acumen
• General awareness of international markets
• Passion and zeal to work hard and succeed

Will one person be allowed to have multiple Authorised Person (Sub-Broker) registrations in different segments with different broking firms?

An Authorised Person (AP) or a Sub-Broker can be affiliated with only one Trading Member (broker) for each segment on a stock exchange. You cannot be appointed as an AP or Sub-Broker by more than one broker for the same segment.
However, if your current broker is not registered in a specific segment, you can partner with another broker who is registered only in that segment.
Example:
If you want to register for the following segments: -
1) Cash Market (CM)
2) Futures & Options (F&O)
3) Currency Derivatives (CD)
and your chosen broker, ABC Ltd, is registered only in CM and F&O, then you have two options:
1) Register for CM and F&O with ABC Ltd, and
       Register for CD with another broker who is registered only in CD.
                                                        OR
2) Choose a different broker who is registered in all the three segments (CM, F&O, CD) and affiliate with them for everything.

Can I work as an Authorised Person (Sub-Broker) part-time?

Yes, you can work as a Sub-Broker (Authorised Person) on a part-time basis. There is no SEBI rule mandating full-time involvement, as long as you are registered through a stockbroker, serve clients responsibly, and comply with all the existing regulatory norms.

You must have basic infrastructure, a trading and demat account, and ensure that there is no conflict of interest with other employment. Many professionals take up this role on a part-time basis to earn additional income through commissions.

What risks are involved in becoming an Authorised Person (Sub-Broker)?

Becoming an Authorised Person (Sub-Broker) involves certain risks, such as income fluctuations due to market volatility and inconsistent client activity. There is also a risk of client defaults which can affect your earnings and reputation.

You must stay compliant with SEBI and broker regulations to avoid penalties. Additionally, setting up basic infrastructure and marketing may involve upfront costs, and poor client service could damage your credibility in the long run.

How do I attract clients as an Authorised Person (Sub-Broker)?

To attract clients, start by leveraging your personal and professional network. Offer consistent support, market insights, and basic investment education to build trust.

Hosting webinars, using social media, and creating informative content can help reach out to a wider audience. Providing prompt service, transparent communication, and regular portfolio updates are key to client retention and referrals.

What is the difference between an Authorised Person (Sub-Broker) and a broker?

A broker is directly registered with SEBI and can independently execute trades on stock exchanges, while a Sub-Broker (Authorised Person) operates under a broker and cannot trade directly.

Authorised Persons (Sub-Brokers) assist in acquiring and managing clients on behalf of the broker and earn commissions based on client activity. In contrast, brokers own the client relationship and bear full regulatory and operational responsibility.

Why should you partner with Motilal Oswal as an Authorised Person (Sub-Broker)?

Grow Big with the Motilal Oswal advantage:

• Legacy of 37+ years
• Solid franchisee base of 8,000+ business partners
• Comprehensive Business Development support
• Cutting-edge technological support
• Diverse product range
• Solid research and advice
• Robust Back-Office operations and support
• Strong mentorship by industry leaders

What is the brokerage income payout process in Motilal Oswal?

The income settlement is done on a monthly basis and the disbursement / payout for a particular month happens within three business days of the next month.

Does an Authorised Person (Sub-Broker) with Motilal Oswal need to register in all segments and what are the charges?

Yes, an Authorised Person (Sub‑Broker) with Motilal Oswal needs to be registered for each segment in which they intend to operate, such as Equity Cash, Equity Derivatives, Currency, and Commodity. The charges involved in becoming an Authorised Person are as follows:-

• One time registration fee
• Security Deposit
• One-time exchange activation fee

What are the maintenance charges for Authorised Person (Sub-Broker) Registration?

The maintenance charges for continuing an Authorised Person (AP) or Sub‑Broker registration are applicable depending upon the segments involved:-

• NSE (Equity & F&O)
• BSE (Equity & F&O)
• MCX (Commodity Derivatives)

What are the benefits of becoming a sub-broker with Motilal Oswal?

By becoming our Franchise Sub-brokering Partner, you will gain access to our exclusive research reports and tools, along with strong back-office and operations support. Additionally, you will have the chance to build your reputation in the market by partnering with a brand that has been in the industry for 35+ years.

What are the eligibility criteria to become a sub-broker with Motilal Oswal?

To become a sub-broker with Motilal Oswal, you must:

• Be an Indian citizen
• Be at least 21 years old
• Have a graduate-level qualification
• Have completed NISM certification
• Be competent with basic computer skills
• Have basic communication skills

How to become a Motilal Oswal sub broker?

To become a sub-broker with Motilal Oswal, you will be required to obtain  a registration certification from SEBI and enter into an agreement with Motilal Oswal. Alternatively, you can simply sign-up on our Partners page and our associates will contact you shortly.

What kind of support and training does Motilal Oswal provide to its sub-brokers?

• Trading platforms: Access to online or offline platforms to execute orders for clients, including mobile apps and web-based options for trading anytime, anywhere.
• Back-office support: Assistance with account opening, KYC verification, fund transfer, and settlement, saving you time and hassle.
• Training and development: Free participation in broker-conducted training programs to enhance your trading skills and stay updated on the latest industry trends and regulations.

The commission structure for sub-brokers at Motilal Oswal is : Revenue sharing – 60%

How does Motilal Oswal help sub-brokers grow their business and client base?

Motilal Oswal offers the following benefits for brokers to grow their business and client base

• Strong Brand Presence
• Express Account Opening Services
• MO First - Business Intelligence App
• Dedicated Product Manager Support
• Robust Risk Management System
• Paathshala - Smart Training App
• Dedicated Sales Team for PMS, MFs, AIF, Insurance
• Support in Managing Investor Awareness Programs and client seminars

What tools and resources are available to sub-brokers for managing their operations?

1. Training and Education:

• Paathshala: A comprehensive training platform for all franchisees and their staff, providing deep insights into the business.
• Seminars and Webinars: Regular educational sessions led by management to keep franchise partners informed and supported.
• Unnati: An initiative by Motilal Oswal aimed at upskilling and enhancing industry knowledge among partner members.

2. Sales and Business Support:

• Dedicated Team: A specialized team led by Motilal Oswal to assist in selling high-net-worth investment products like PMS (Portfolio Management Services) and AIF (Alternative Investment Funds).
• Saksham: A support system designed to help partners recruit staff efficiently.
• FOCO (Franchisee-Owned Company-Operated): Implanting trained advisors at partners’ offices for client advisory services and business development.

3. Operations and Business Analysis:

• Product Subscription: Partners receive regular updates on available products and services.
• Periodic Business Analysis Reports: Detailed reports on Business Revenue, Turnover, and AUM (Assets Under Management) are provided in graphical and tabular formats.
• Opportunity Module: Assists partners in identifying areas for business upscaling.

4. Business Management Tools:

• CBOS: A comprehensive platform that provides operational support for business management.
• One Login, Multiple Access: A single login system allowing access to multiple platforms without the need to remember different credentials.

5. Client Portfolio and Reports:

• Client Information Access: Detailed client data, including personal information and trading history, are available for review.
• Reports Generation: Partners can generate reports on holdings, transactions, capital gains, dividends, and benchmark analysis for in-depth client assessments.

This suite of tools and resources is designed to support sub-brokers in running their operations smoothly and effectively.