How to Become a Sub Broker?
The Indian Stock market is evolving at a glaring speed and this offers a diverse range of opportunities for those who seek answers to how to become a sub-broker. Due to the generally positive returns, share trading and investing have grown to be appealing propositions. Equity seems to have outperformed the majority of other asset classes during the last few years. Market risk is unavoidably a component of stock investing, and investors should be aware of this before making a purchase. Coupled with the emergence of many startups, the accelerating interest has created a plethora of opportunities for individuals interested in the sub-broking sector. Wondering how to become a sub-broker? We have a guide for you.
The need for a sub-broker
Direct share transactions are not available to regular investors. They must do it through a broker who is a stock exchange member. Authorized individuals (formerly known as Sub Brokers) handle the majority of the work involved in investing because there aren't as many brokers as there are investors. Thus when investors sell or buy shares they do it through the sub-brokers.
Who is a sub-broker?
Before we get into the crests and troughs of how to become a sub-broker? Let’s find who is a sub-broker. According to the general definition set by the National Stock Exchange, a sub-broker is a person outside the trading landscape. In layman’s language, sub-brokers are not trading members of the stock exchange, but they act on behalf of the trading members as an agent. They also assist investors in dealing with securities through trading members.
How to become a sub-broker?
- For one, you carefully need to pick your stockbroking firm. This step is immensely crucial as it would have a direct impact on your routine operations, incentives, etc. Make sure that in addition to the high incentives and of course the scope of growth, you also analyze the digital presence, networking experience, and services of the brokerage firm before you begin.
- Go through the eligibility criteria and submit all the duly filled relevant documents as asked by the stockbroking firm. In addition to the documents, you must also submit a processing fee with GST.
- The stockbroking firm then forwards your application to the National Stock Exchange for further validation as well as approval while making the processing fee on your behalf. This step is essential for checking any deficiencies or discrepancies.
- Once the application is reviewed, you would have to register with SEBI for a fixed fee through your sub-broking firm and after SEBI acknowledges your fee payment you would be sent for a sub-broker registration from where you can get your unique registration number.
Get started
Still, struggling with the question of how to become a sub-broker? Need more answers or are you just searching for a legitimate stock brokerage firm that offers transparency as well as expertise? Then Ski Capital is your one-stop solution. Reach out to the experts and get started on your journey of “how to become a sub-broker” now!