Stock brokers in India reach investors in small towns and neighbourhoods through a network of partners known as Authorised Persons, the formal term that replaced the old sub-broker registration. An Authorised Person is an individual or firm appointed by a SEBI-registered stock broker and registered with the stock exchange to bring in clients, assist them with account opening, and help them trade or invest through the broker platform. Brokers such as Zerodha, Angel One, Upstox, ICICI Direct, Motilal Oswal and Sharekhan typically run partner or Authorised Person programmes of this kind.
This is a business relationship rather than an employment contract. The Authorised Person is paid a share of the brokerage generated by his or her clients, and in some programmes a referral payout per account. The role suits people with financial market interest, a local network of salaried professionals, traders and small business owners, and the discipline to follow exchange rules. It is open to 12th pass and graduate candidates who complete the required certification.
This guide explains the daily work, eligibility and certification, the registration process with the broker and the exchange, the documents required, how revenue sharing works in general terms, what to confirm in writing, conduct rules, growth paths and the scams common in this space. Figures are indicative only and vary by broker, city and experience.
Day-to-Day Work of an Authorised Person
The core activity is client acquisition and support. A typical day involves meeting prospective investors, explaining how a demat and trading account works, helping them complete online KYC, guiding them through the broker app, and answering queries about orders, settlements, charges and statements. Authorised Persons also conduct small awareness sessions on basics of equity investing, mutual funds through the broker platform, and IPO applications.
Some Authorised Persons operate a physical office where walk-in clients can place orders through the broker terminal under the Authorised Person login, with the order routed to the broker. Others work purely digitally. In either case, the broker holds the client account, collects the brokerage and shares a portion with the Authorised Person every month. The Authorised Person must never handle client money or securities and must never promise returns.
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Levels and Programme Types
- Referral partner: an informal programme where a person refers clients through a link and receives a fixed payout or a small share of brokerage, usually without exchange registration. Suitable for beginners testing the field.
- Registered Authorised Person: formally registered with the exchange through the broker, allowed to assist clients and operate a branch or terminal, with a higher revenue share and more responsibility.
- Franchise or branch partner: an Authorised Person who sets up a branded office with the broker name board, infrastructure requirements and a security deposit, in return for a larger share and marketing support.
- Master franchise: an Authorised Person who manages a network of sub-partners in a region, where the broker offers such a structure.
Eligibility and Certification
Exchange and SEBI requirements for an Authorised Person generally include the following. Confirm the current norms with the broker and the exchange.
- Age: 18 years or above.
- Education: at least 10th or 12th pass as per the exchange norm; most brokers prefer graduates for branch partners.
- Certification: NISM Series VIII Equity Derivatives certification is commonly required for anyone dealing in the derivatives segment, and other NISM modules such as Series V-A for mutual funds or Series X-A for investment adviser work may be asked for depending on the activities. The broker specifies which modules are mandatory.
- Fit and proper: no conviction for fraud or economic offences, no default record with any exchange, and not already registered as an Authorised Person with another broker for the same exchange segment.
- Infrastructure: for office-based partners, a suitable premises, computer, internet and the ability to maintain client records.
Registration Process Step by Step
- Shortlist brokers and compare their partner programmes on revenue share, support, technology and deposit requirements.
- Apply through the official partner page of the chosen broker and have an initial discussion with the partnership team.
- Clear the NISM certifications specified by the broker and keep the certificates ready.
- Submit the Authorised Person application form, KYC documents, education proof, net worth or deposit details if required, and the signed agreement with the broker.
- The broker forwards the application to the exchange, which verifies and issues the Authorised Person registration for the relevant segments.
- Receive the registration certificate, partner login and training on the broker systems and compliance rules.
- Start onboarding clients, with every account opened in the client own name directly with the broker.
| Programme Type | Registration Needed | Typical Investment | Indicative Monthly Income |
|---|---|---|---|
| Referral partner | Broker programme only | Nil | Small, a few thousand rupees, varies |
| Digital Authorised Person | Exchange registration through broker | Nil to small fee | ₹10,000 to ₹30,000 after building a client base |
| Office-based Authorised Person | Exchange registration plus premises | Office setup, possible deposit | ₹25,000 to ₹70,000 or more, depends on client activity |
| Salaried relationship manager at a broker | Employee with NISM certification | Nil | ₹18,000 to ₹35,000 for freshers plus incentives |
All money figures in this zerodha and angel one sub-broker jobs article are indicative and may change. Check the exact salary, allowances and deductions with the employer in writing, or through the first portal listed under Helpful Links, before you accept an offer.
How Revenue Sharing Works
The broker collects brokerage, exchange charges, statutory levies and account charges from clients. From the brokerage portion, it pays the Authorised Person an agreed share, often somewhere between 30 and 70 percent depending on the programme, the volumes and whether the partner has an office. Discount brokers with flat-fee pricing may instead pay a fixed amount per account opened plus a share of the flat fee. Payouts are usually monthly, subject to TDS and GST registration where applicable.
Income is entirely linked to the trading and investing activity of the clients, so it rises and falls with market cycles. The figures in the table are indicative and vary by broker, city and experience. Before signing, confirm in writing the revenue-sharing percentage for each segment, the payout date, any minimum activity condition, the security deposit amount and refund terms, who pays for marketing and software, the lock-in or exit clause, and what happens to your clients if the agreement ends.
Rules of Conduct You Must Follow
- Never accept cash, cheques or transfers from clients into your own account; all funds go directly to the broker client account.
- Never give assured return promises, tips that promise profit, or portfolio management services without the required SEBI registration.
- Never operate a client account without written authorisation or share client login details.
- Keep all client agreements, KYC records and correspondence as required by the exchange.
- Display the registration certificate at the office and use only the broker-approved name board and marketing material.
- Cooperate with exchange inspections and respond to client complaints within the prescribed time.
Working Hours and Routine
Market hours run on weekday mornings and afternoons, and office-based partners stay available throughout that period. Client acquisition and education happen in the evenings and on weekends. There is no fixed target from the exchange, but brokers may set expectations on new accounts or active clients to maintain the higher revenue-share tier. Many Authorised Persons combine the work with mutual fund distribution, insurance agency or accounting services from the same office.
A practical weekly routine is to block market hours for client support and order queries, keep late afternoons for documentation and follow-up on pending account openings, and use two evenings a week for meeting new prospects. Reviewing the monthly payout statement line by line against your own client list helps catch mapping errors early, which are common when accounts are opened online.
Career Growth Options
Growth comes from a larger and more active client base, which raises brokerage share and payouts. Successful Authorised Persons expand to branch partnerships, add sub-partners where the broker allows, or register for additional exchange segments such as commodities and currency. Others move into salaried roles at brokers as branch managers or dealers, pursue the SEBI investment adviser or research analyst registrations after the necessary NISM certifications and experience, or build a full financial services practice covering investments, insurance and loans distribution.
Scam Warning: Fake Partner Programmes and Trading Frauds
This field attracts fraud because it deals with money and promises of trading profit. Watch for unregistered entities offering sub-broker partnerships for a joining fee, WhatsApp groups that offer a franchise with assured monthly income, demands to transfer a security deposit to a personal UPI ID, fake apps that copy a broker logo and ask for OTP or trading password, and partner offers that require you to collect client money or run trades in a pooled account. None of these come from genuine brokers. Real brokers register Authorised Persons through the exchange, collect any deposit only into the company account against a receipt, and never ask for your OTP.
Verify a broker by checking its registration details and partner page on the official website, confirm the exchange registration of any existing partner you deal with, make sure email comes from the company domain, and visit the registered office if possible. If you have paid or shared bank details with a suspicious party, report it to your bank and the local police immediately.
Frequently Asked Questions
Is an Authorised Person an employee of the broker?
No. It is a business partnership under an agreement, and income is revenue share rather than salary. Brokers do employ salaried relationship managers and dealers as a separate category.
Can I be an Authorised Person for two brokers?
Exchange rules generally do not permit registration with more than one broker for the same segment on the same exchange. Check the current rule with the broker before applying.
Which NISM exam is most important?
NISM Series VIII Equity Derivatives is the most commonly required module for Authorised Persons who assist clients in the derivatives segment. The broker will confirm the exact list of modules.
Is a security deposit mandatory?
Not always. Digital and referral programmes usually have no deposit, while branded office partnerships may require one. Any deposit should be refundable and documented in the agreement.
Can I give stock tips to my clients?
Giving investment advice for a fee or research recommendations requires separate SEBI registration. As an Authorised Person you can educate clients and share broker research but must not promise returns or run their accounts.
Before You Sign the Agreement
Becoming an Authorised Person is a realistic way to build a financial services business with a well-known broker brand behind you. It takes certification, exchange registration, a growing client base and strict compliance. Read every clause of the agreement, keep client money completely separate from your own, and treat any promise of assured income as the warning sign it is.
Disclaimer: This article is for general information only. It is not legal, financial, investment, insurance or employment advice. Rules, exams, fees, vacancies and pay change regularly, so confirm all details directly with the employer, the regulator or the official notification before applying, paying any fee or signing any agreement.
