With the striking speed at which the Indian stock request is growing, there feel innumerous openings for gains for investors in all spheres. This booming interest, coupled with the emergence of multiple startups in every niche has accelerated the significant need for brokers andsub-brokers to enable trading in the stock request. With a plethora of openings to explore, how to become a sub broker is relatively simple, especially if you have the stylish brokerage establishment to guide you. In this composition, thus, we will break down for you the way on how to come asub-broker in India.
But first, let us claw into the basics.
Who’s a Sub Broker?
The National Stock Exchange defines a ‘ Sub Broker meaning ’ as “ any person who isn’t a Trading Member of a Stock Exchange but who acts on behalf of a Trading Member as an agent or else for aiding investors in dealing in securities through similar Trading Members. ”
Trading Members are needed to enter into an agreement with allSub-Brokers, with the agreement laying down the rights and liabilities of both parties in detail. The Sub Broker must also be registered with SEBI, as a prerequisite to indulge in their operations.
Diving into some further details, asub-broker has functions analogous to that of a broker, that is, acting as an conciliator. The only difference is that thesub-broker mediates between the broker and a customer. In utmost cases,sub-brokers work for brokers, their main task being bringing guests to the brokerage establishment and aiding the former with investments and security dealings. In this process, they can earn a certain cut from the sale as well.