Looking for a new career path? Want to become your own boss?
Independence isn’t just the logical next step in a successful career—it’s what gives you the freedom to offer a new level of service to your clients and chart your own path to success on your own terms.
Sit tight and brace yourself for the exciting world of stock markets. The Authorised Person (AP) model is one of the best ways to start your own business. You can choose from a wide list of stock brokers to help build the firm you envision.
The best part? Going independent doesn’t mean you have to do it alone. Your broker partner is going to help you in every step and even offer you all the support and training you need to build and run your business.
Authorised person, business associate, franchisee partner, and sub-broker are commonly used terms for authorised person of a stockbroker. Authorised persons play an important role in helping people invest in stock markets.
In this article, we’ve covered everything you need to know about becoming a registered authorised person.
Authorised Person as per SEBI regulations?
To put it simply, an Authorised Person is a person that works as an agent of a stockbroker and helps customers get access to trading platforms.
The term Authorised Person was first introduced by the Securities and Exchange Board of India (SEBI) in 2009. They clarify that APs cannot be trading members but can only act on their behalf.
Who can become an Authorised Partner?
Individuals, corporate bodies, partnership firms, and Limited Liability Partnerships (LLP) can become authorised partners. According to the National Stock Exchange (NSE), all APs have to obtain a Certificate of Registration from SEBI to get permission to deal with securities.
Once you and the trading members sign an agreement delegating the rights and responsibilities of both parties; you will receive a commission for every transaction you help to carry out.
Eligibility criteria for becoming an Authorised Person
To go independent as an authorised person, you need to meet the following conditions:
- You must be a resident citizen of India of at least 18 years of age.
- You should not have been convicted of any offence involving fraud and dishonesty.
- You must have good character and reputation.
- You should have passed at least the 10th standard.
- You should have adequate infrastructure, including necessary office space, manpower and equipment to effectively carry out/her duties.
For LLPs, body corporates, and partnership firms
- All partners and directors of these entities must fulfil the eligibility criteria for individuals to become business partners.
- Shall have the necessary infrastructure like adequate office space, equipment, and manpower to effectively discharge the activities on behalf of the Trading Member.
- The Partnership Deed and the Memorandum of Association must contain a clause allowing APs to deal with securities.
Registration charges for Becoming an AP
When you register for becoming an Authorised Partner with Arihant, you will have to pay certain charges. These charges are regulated by the exchanges and may change from time to time. As of now, registration in NSE or BSE takes about ₹2,000 per segment (plus GST), and cancellation of registration will cost ₹1,000 per segment (plus GST). If you apply to MCX and NCDEX the registration charges are also ₹2,000 (plus GST).
Skills for Becoming an Authorised Person
Are you eligible to become an AP? Great! But can you become an AP right away?
Let us check: You don’t need to be highly qualified or have many years of experience. But a few basic skills and knowledge about the financial markets will come in handy as an authorised partner.
If you want to be an Authorised Person you need to be well acquainted with the functioning of the stock markets. An understanding of the price movements is required so you can prudently guide your clients. Similarly, they need to understand client needs, risk profiles and return expectations. Understanding the potential of stocks, the financial health of companies and the risks involved in investment is necessary. But don’t worry you are not alone.
As an Arihant partner, you will get access to a strong and experienced research team. Our expert research analysts share insights and technical and fundamental calls, so you have the right tools necessary to help your clients.
As an Authorised Person, you will also need excellent communication skills. Moreover, your income is based on commissions, so the more clients you can get, the better. So, if you are a highly networked individual, expert sales partner, or knowledgeable financial advisor, you can become a business partner of top brokers.
Can I become an AP of multiple stock brokers?
You can be associated with only one trading member (TM) at a time as an Authorized Partner. If your TM does not have any registration in a particular segment, you can look to associate with another TM. Please note that you as an AP will not be authorized to handle a client’s money and securities, and your stockbroker is responsible for all actions of the AP.
Benefits of Authorised Person with Arihant Capital
As an AP, you will help clients make informed decisions about their investments and Arihant Capital is the right partner to help you in your journey.
For the last thirty years, Arihant Capital has been there for thousands of business partners just like you who want to serve their clients’ best interests—whether they’re just starting out or have more complex needs. We make sure our partners (authorised persons) of all sizes have everything they need to grow and succeed.
With Arihant Capital, you can grow a profitable business and enjoy the freedom of being independent. Our tech-forward, user-friendly solution is ideal for attracting the next generation of clients seeking financial freedom. Here are some of the benefits of becoming an AP with our company:
Technology that can improve your work
Our robust digital onboarding (eKYC), automated instant fund transfer facility, comprehensive technology platform, and value-added third-party tech integrations provide a streamlined end-to-end solution for you and your clients. Arihant’s partner platform also gives you access to all the important data points you need to grow your business and support your clients – track investments, identify opportunities, and make smart decisions.
Investment solutions to fit clients’ diverse needs
When it comes to investing, one size can’t fit all. You need a wide range of products to create the right portfolio for your clients. From equities, currency, mutual funds, and portfolio management services (PMS) to insurance, national pension scheme (NPS), fixed income, and tax-saving bonds, we offer a diverse suite of products and services so your client can get access to all investment products in one place.
Training from industry experts
You’ve dreamed it. Let us help you get there. Access personalized consulting and education services designed to help you grow your business. As our authorised partner, you will get access to personalised training and education services designed to help you grow your business and serve your clients better.
On-time commissions guaranteed
Being in the broking business, we know being on time is critical. This is why you can be sure of timely payments when working with Arihant.
Trusted brand: Arihant Capital is a trusted brand with a Pan-India presence serving over 2 lac clients and 80+ institutions. We are proudly helping Indians meet their investing goals since 1992 and aim to empower every Indian to take control of their financial future. Our talented team across research and tech brings decades of experience to give our clients the very best of products and services.
There’s no substitute for trust and experience
You and your clients deserve the very best. In the last three decades, we’ve been serving clients and business partners and understanding their complex needs and problems like no one else. Integrity has been at the heart of everything we do and hence we have business partners who have been there from day one of their journeys until now. We’ve grown together for decades because of this trust. We are committed to the long-term financial health of our clients and partners.
How to Become an Authorised Person?
If you meet the eligibility criteria, all you need is a basic knowledge of stock markets and a zeal to win! As an AP, you can be your own boss and help clients achieve their financial dreams while you earn. Now that’s called a win-win.
There are different models to associate with Arihant Capital:
- In-house Partner
- Joint venture
- Referral Partner
Once you input your contact details, you will get a call back to discuss all aspects of your roles, including revenue sharing, commission, your job roles, etc. On completing the necessary formalities, you will be registered as an AP on the stock exchange.
So, what are you waiting for? Pack your arsenal with Arihant Capital’s advanced technology, diverse financial solutions, strong support and decades of business experience, and strong research team and get ready to be a client’s true partner in their wealth creation journey.
Your path to independence starts here.