To meet this growing demand and expanding client base, the concept of sub-brokers has emerged. 

Sub-brokers play a vital role in guiding you through account opening procedures and investment decisions. 

Let’s understand what is sub broker, their benefits, and much more.

What is Sub Broker?

A sub-broker is an individual or group of individuals who assist a primary broker by helping a larger clientele trade and invest in the markets. 

Becoming a sub-broker can be lucrative and rewarding considering the various programs brokers offer for serving a larger client base, often based on tiers.

Sub-brokers play a vital role in simplifying your trading experience and ensuring compliance with regulatory requirements. 

Their services can extend to research, trade execution, and advisory support. 

This simplifies financial market complications and keeps the regular market participant updated about investing prospects.

Steps to Become a Sub-Broker

Here is a step-by-step guide on how to become a sub-broker in India, detailing the comprehensive process and requirements involved in entering the financial industry:

1. Select the Appropriate Sub-Broker Franchise Model

Start your journey by researching and assessing the different sub-broker franchise models offered by various stockbroking firms. 

Carefully evaluate their business structures and choose the one that aligns with your objectives and preferences. 

Consider the Dhan authorized partner program if you are looking to become a sub-broker for the fastest-growing stockbroking firm in India.

2. Verify Eligibility Criteria

Once you’ve made your selection, examine the eligibility criteria specified by the chosen stockbroking house. 

Generally, these criteria for individuals are straightforward and easily met. For example, If you have chosen Dhan, you must meet these eligibility criteria:

• You must be a resident of India
• You have a bank account
• You are over 18 years old

Oh, and you must also have a budding client base that can benefit from the services you provide as a sub-broker. 

3. Submit the Required Documents

After confirming your eligibility, gather all the essential documents for your application, including:

• Sub-broker registration application form
• Signed agreement with the stockbroking house
• Proof of address (e.g., electricity bill, ration card, passport, etc.)
• Proof of experience certificate (if applicable)
• Any other relevant documents as specified

4. Submit the Application and Payment

Once your documents and processing fee are ready, the stockbroker will submit your application electronically to the exchange and make the payment for processing the sub-broker application form on your behalf.

5. SEBI Registration Fees

After your sub-broker application is checked and approved, your company needs to register with SEBI and pay a fixed fee.

Once SEBI confirms your fee payment and registration, they’ll give you a sub-broker registration certificate and a special registration number.

This means you’re now officially recognized as a sub-broker.

Regulations for Becoming Sub-Broker

The initial step involves securing the necessary licenses from regulatory bodies such as SEBI and stock exchanges. 

Your official authorization will be granted through your affiliation with a reputable brokerage firm.

It’s important to select a well-established firm that can ensure complete legal compliance and offer the necessary support. 

Furthermore, you’ll be required to complete mandatory certification exams to showcase your proficiency and expertise.

Make sure to thoroughly acquaint yourself with all the rules, regulations, and ethical codes of conduct applicable to sub-brokers, as upholding principles of ethics and transparency is of utmost importance.

Conclusion

Now that you’ve grasped the essence of what is sub broker in share market, you know it is a gateway to the world of stock trading. 

However, it requires diligence, market insight, and compliance with regulations.