An Authorised Person (AP) is appointed by a SEBI-registered stock broker to bring in and service clients under the broker's membership, sharing in the brokerage those clients generate. It replaced the older sub-broker category. To become an AP you need to be at least 18, meet basic education and integrity requirements, hold NISM certifications for the segments you will serve, sign an agreement with a broker and be approved through the stock exchange. It is one of the most accessible ways to start a broking business in India.
- The Authorised Person model is a legal, low-investment way to start in broking in India.
- APs work under a SEBI-registered broker and earn a share of the brokerage from their clients.
- You need NISM certification for each segment, such as currency derivatives or equity derivatives.
- Registration happens through your chosen broker and the stock exchange.
- Many successful brokers started as APs before applying for their own SEBI registration.
Looking for a CRM for Authorised Persons? Manage leads, clients and follow-ups as you grow your broking business.
Want to start a broking business without the capital and compliance load of a full stock broker licence? The Authorised Person (AP) model lets you build your own client base and income under an established SEBI-registered broker.
What an Authorised Person does
- Acquires and services clients for equities, derivatives, commodities and currency derivatives.
- Earns a share of the brokerage generated by those clients, as agreed with the broker.
- Uses the broker's trading platforms, back office and compliance framework.
The AP model replaced the earlier sub-broker category, which SEBI removed.
Eligibility
| Requirement | Details |
|---|---|
| Age | At least 18; some brokers prefer 21 or older |
| Education | At least 10th pass; graduates are often preferred |
| Certification | NISM certification for each segment, for example Series I for currency derivatives and Series VIII for equity derivatives |
| Integrity | Clean legal and financial record |
| Firms | Partnerships, LLPs and companies can apply; partners or directors must meet the same norms |
How to become an AP: step by step
- Choose a broker whose revenue share, platforms and support suit you.
- Pass the NISM exams for the segments you plan to serve.
- Apply through the broker, who submits your application to the exchange.
- Sign the AP agreement and complete KYC and any deposit the broker requires.
- Get approved and start onboarding clients.
An AP can be linked to one broker (member) at a time on an exchange, so compare brokers carefully.
Tools that help an AP grow
Your broker provides the trading platform, but your growth depends on how you find and look after clients. A simple CRM for leads and follow-ups, a professional website, WhatsApp and email workflows, and reporting on client activity make a big difference. Successful APs often go on to start their own SEBI-registered broking firm.
General information only, not legal or tax advice. Rules change; confirm current requirements with SEBI, the exchanges, IFSCA or RBI and a qualified adviser before you start.