Authorised Person – Benefits, Registration Process, Eligibility Criteria & more
Registration procedure for SEBI Authorised Person
Eligibility Criteria for Stock Market Authorized Person
- An individual or a partnership firm or LLP can be appointed as AP
- In case of individual, the person should be atleast 18 years old ; if it’s a partnership firm or LLP then all partners should qualify these criteria
- The AP should have qualified the matrix i.e. 10th standard
- AP should not have any criminal records or a bad repute
- Authorised Person should have an understanding of the stock market
- The AP should have the required infrastructure like office space, manpower, equipment etc.
List of all Stock Brokers Providing Autorised Person Registration
List of Authorised Person Business Model Provider in India
How to Become an Authorised Person?
- Think over the stock broker with whom you want to get affiliated. For this, you can refer to our “sub broker” section –this section provides the offers and the revenue sharing details of all the stock brokers. For assistance in selecting the broking company, you can fill in the lead form and we will connect with you to explain the offers available with all the broking companies.
- If you have finalized the broking company for affiliation, then you now need to connect with such broker. For this purpose, let us know your contact details and we will set up a meeting with the sales team of that broking company.
- In that meeting, you can discuss all the aspects like the roles, the segment which you want to opt for, the revenue, the revenue sharing, the commission, the support provided etc.
- Provide all the documents as required by the stock broker
- Stock broker will verify the documents
- Upon verification, stock broker will draft an agreement ( this agreement is as per the format prescribed by the stock exchange)
- Read this agreement carefully and then sign
Registration Fee required to Become an AP
While making this application, the AP needs to pay certain registration fee. In case of NSE, the registration fee is fixed at Rs. 2,000 per segment. For BSE also, the fee is in the similar range. The fee is exclusive of any taxes and while making payment the AP will be charged GST additionally.
Documents required to for AP Registration
- A signed undertaking from AP that he is willing to serve as AP and will abide by all the applicable regulations
- A signed agreement between AP and stock broker as per the prescribed format
- PAN card copy
- DOB proof copy
- Copy of Address proof
- Copy of academic qualification certificate
Benefits of Becoming an Authorised Person
Authorized person Model in Share Market comes with plenty of benefits, here are the list of benefits associated with AP –
Initial Investment is very low
To become an authorized person of a broking house, the initial investment amount starts with as low as Rs.10,000 & goes upto Rs.300,000. This is one franchise business where security deposit is extremely low.
Very decent Commission Sharing
The Commission sharing or Revenue Sharing in this model is is very good. The Authorised person gets about 60%-90% revenue sharing. This massive revenue sharing depends on the volume of revenue generated by the Authorised Person. Higher the revenue better the sharing.
Research & Advisory Support
Another major benefit of Authorised Person model is that they don’t have to set-up their own research & advisory team. This is generally taken care by the broking house. This reduces their investment further.
Products & Service Support
Marketing & Advertising Support
The Broking company conducts training activity for Authorized person either on monthly basis or every 3 months to keep their partners upto date regarding all the changes of the market. The broking house also organizes big seminars for their Authorized Persons.