Business Associate

A sub-broker is an agent who is associated with a trading member of the stock exchange. To be a sub-broker, one must be registered with the Securities and Exchange Board of India (SEBI) and with a local stock exchange.

Sub-brokers help their clients to buy and sell securities in the stock market. They offer information to them on various securities. They also pass on the clients’ trading orders to the trading member or brokerage firm with which they are associated. For the service provided, they earn a percentage of the brokerage commission.

Follow these steps if you wish to become a sub-broker:

1. Apply for certification from the National Institute of Securities Markets (NISM). The certification exam includes modules on equities, mutual funds, commodities, and derivatives.
2. Register online with the Securities and Exchange Board of India (SEBI). Upload the relevant documents and pay the registration fee along with the initial deposit.
3. Register with your local stock exchange.
4. Apply to become a sub-broker at an established brokerage company like Kotak Securities. You will then gain access to research material, regular training, excellent tech tools, and constant support.

You are eligible to become a sub-broker if you meet the following requirements:

• You have a secondary school graduation degree.
• You are at least 21 years of age.
• You have in-depth knowledge of financial services.
• You already have a good network of clients.
• You can make a minimum deposit of Rs 3 lakh (the amount is negotiable).
• You have a 300-square-foot office, preferably in a prime location.
• You have computers with ISDN or SAT connections.

You will have to pay a registration fee and make an initial deposit when registering with the Securities and Exchange Board of India (SEBI). You may also incur a fee when signing up with the local stock exchange.

Following this, when you apply to be a sub-broker of Kotak Securities, you will have to make a minimum deposit of Rs 3 lakh. The deposit amount is negotiable. In addition, you would need to have a 300-square-foot office space equipped with computers that have ISDN or SAT connections.

A sub-broker enlists clients and helps them with their securities trades on a one-to-one basis. The sub-broker may provide information to a client about different securities. They also convey the client’s buy and sell orders to the brokerage firm, which then executes the orders.

It should be noted that sub-brokers do not buy or sell securities directly. The brokerage carries out the actual trades. Sub-brokers simply carry out client-facing services on behalf of the brokerage company. In return, they earn a percentage of the brokerage commission.

You can become a sub-broker if you are at least 21 years old, hold a secondary school graduation certificate, and certification from the National Institute of Securities Markets (NISM). Before you apply to become a sub-broker, you would also need to register with the Securities and Exchange Board of India (SEBI) and your local stock exchange.

To become a sub-broker of Kotak Securities, you would need to make a minimum deposit of Rs 3 lakh (negotiable) and have a 300-square-foot office. The office should preferably be in a prime location and have computers with ISDN and SAT connections.

Yes, you can. Start by opening a trading account for yourself. Then manage your account like you would any other account on your client list.