In 2025, aspiring Sub Brokers—now officially known as Authorised Persons (APs)—play an important role in connecting investors to the market through SEBI-registered brokers. APs attract clients, execute orders, and service the clients locally as a representative of the main broker—all without exchanging funds themselves. With India’s booming retail sector post-Coronavirus, APs are a gratifying, low-investment career path. Here’s how to launch your AP journey, step by step.
Why Become a Sub Broker or Authorised Person (AP)?
- Lucrative Commission Model: Earn up to 90% of brokerage fees, depending on your broker partnership.
- Low Start-Up, High Return: Registered through the broker and exchange; your office and tools come from a minimal initial investment.
- Scalable Business: Begin small, expand through client referrals, seminars, and digital outreach.
- Cross-Selling Opportunities: Cross-sell other investment products and generate revenue.
Eligibility & Regulatory Criteria
To qualify as an AP, you must meet core requirements:
- Age & Citizenship: Indian citizen, 18 years or older.
- Educational Qualification: Minimum 10th standard (High School) pass.
- Integrity & Reputation: No criminal convictions; clean financial track record.
- Infrastructure: Operational office space, equipment, and basic staffing.
Certification Requirements
Although the NISM-Series XI: Equity Sales Certification exam was discontinued effective April 1, 2021, other relevant certifications need to be cleared:
- Choose from exams like Securities Operations (Series VII), Equity Derivatives (Series VIII), Investment Adviser (Series X-A/ B), among others.
- Most exams: 100 questions, 2-hour duration, 60% passing score, ₹1,500–3,000 fee, 3-year validity. Check out the link for NISM courses NISMFYERSTestbook
Registration Process & Fees
Becoming an AP involves several stages:
| Step | Description |
| Apply through Broker | Broker submits to the exchange for approval—broker holds liability. |
| Pay Exchange Fees | ₹5,000 per segment + GST; Annual maintenance ₹5,000 + GST (NSE) or ₹4,000 per segment (others) NSE Indiapentadsecurities.com |
| Documentation | Submit Form-B/C, agreements on stamp paper, references, KYC, educational proofs, etc. |
| Approval | Typically processed in 2–4 weeks; certificate and registration number issued |
Infrastructure & Compliance Essentials
To operate effectively:
- Office Setup: Can cost ₹20,000 to ₹2 lakh, depending on location and furnishing level
- Maintain Compliance: Implement and adhere to KYC, AML protocols, and record-keeping requirements, and renew documentation annually.
- Registration Renewals: Pay annual maintenance fees and refresh certifications every three years.
Commission Models & Business Growth
- APs generally earn a commission-based revenue share—often between 40% and 90% of client brokerage.
- Use seminars, digital outreach, and local networking to build a client base.
- Leverage your broker’s research, tools, and marketing support to stay competitive
Support From Growaxis
When a Sub Broker registers through us, they enjoy an exclusive one-year free subscription to a comprehensive launch support package. We build a custom, content-rich website, design and manage an effective lead generation system, deliver professional training, and negotiate the most competitive broker partnership—all with no cost for the first 12 months. Ready to elevate your sub-brokering journey? Contact us today for a detailed discussion.
Conclusion & Your Next Steps
Becoming an Authorised Person or Sub Broker in 2025 is a powerful way to enter India’s growing financial sector. With minimal capital, a clear regulatory path, and scalable income potential, it’s a rewarding entrepreneurial move.
Take action:
- Choose a credible sponsoring broker.
- Complete a relevant NISM certification.
- Prepare documentation and apply via the exchange portal.
- Build your office, marketing, and compliance systems.
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FAQs
Q1. Is SPB (AP) the same as a sub-broker?
A: Yes. SEBI now defines them as Authorised Persons (APs), but ‘sub-broker’ remains a common industry term.
Q2. Is the NISM XI Equity Sales certification mandatory?
A: No, it was discontinued in 2021. Instead, choose other applicable NISM exams per your broker’s requirement NISM
Q3. Can APs collect client funds?
A: No—they must operate only via their sponsoring broker’s accounts. All funds must pass through the trading member’s account.
Q4. What’s the cost range to start as an AP?
A: Exchange fees: ₹5,000 (one-time) + ₹5,000 annual maintenance (NSE). Setup costs: ₹20,000–1,00,000, including infrastructure and SEBI/exchange fees