Sebi Registration For Authorised Persons: Process, Documents, And Requirements

By Author: Priya Sawant
Total Articles: 6
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Becoming an Authorised Person (AP) can be an opportunity to build a business in India's financial services sector by partnering with a registered stockbroker. Prospective applicants often have questions about SEBI registration for Authorised Persons, eligibility, documents, fees, revenue sharing, and the application process.

For those researching how to become a sub broker in India, it is important to understand that the current regulatory framework uses the term Authorised Person. An AP is appointed by a stockbroker and requires approval from the relevant stock exchange. The process is therefore not the same as obtaining an independent SEBI registration as a stockbroker.

What Is an Authorised Person?

An Authorised Person is an individual or eligible entity appointed by a stockbroker to provide permitted services and access to the broker's trading platform. An AP can help expand the broker's reach and may assist clients with account opening, onboarding, trading support, and other broker-approved activities.

The AP operates under the stockbroker's framework and must comply with applicable exchange ...
... requirements and the broker's policies.

For someone exploring a sub broker business in India, the AP model provides a structured way to partner with a registered stockbroker and build a client-focused financial services business.

Is Separate SEBI Registration Required for an Authorised Person?

The terminology can sometimes cause confusion. An AP does not obtain a separate stockbroker licence from SEBI in the same way a stockbroker does. Instead, the stockbroker applies to the relevant stock exchange for approval of the AP's appointment.

Therefore, applicants should generally begin by selecting a registered stockbroker and understanding its AP partnership process.

Eligibility Requirements for an Authorised Person

Eligibility requirements can vary according to the applicable exchange framework. NSE currently lists individuals, partnership firms, LLPs, and body corporates as eligible categories.

For an individual applicant, requirements may include Indian citizenship, a minimum age of 18 years, good reputation and character, no conviction involving fraud or dishonesty, and at least a 10th-standard qualification. The applicant must also have adequate infrastructure, including office space, equipment, and manpower.

For partnership firms, LLPs, and body corporates, the relevant partners or directors must meet applicable individual eligibility conditions. The entity's constitutional documents must also permit securities-related business where required.

Documents Required for Authorised Person Registration

The exact document checklist can vary depending on the applicant's constitution and exchange. Documents may include:

PAN card

Date-of-birth proof

Residential address proof

Office address proof

Educational qualification proof

Applicant undertaking

Agreement between the Trading Member and Authorised Person

Partner or director details, where applicable

Shareholding details, where applicable

LLP deed and Certificate of Incorporation for an LLP

Memorandum of Association and Certificate of Incorporation for a body corporate

Applicants should check the latest document requirements with the relevant stockbroker and exchange before submitting an application.

Step-by-Step Authorised Person Registration Process

Step 1: Choose a Stockbroker

The first step is to identify a registered stockbroker that offers an Authorised Person partnership. Compare factors such as revenue sharing, technology, customer support, training, marketing assistance, compliance support, and operating costs.

For prospective sub broker in India, the broker's commercial terms can have a significant impact on the long-term viability of the business.

Step 2: Check Eligibility

Review the broker's requirements along with the applicable exchange criteria. Make sure you satisfy the requirements relating to age, education, constitution, infrastructure, and other conditions.

Step 3: Prepare the Documents

Collect PAN, address proof, educational qualification documents, photographs or other documents requested by the broker, and entity documents where applicable.

Step 4: Sign the Agreement

The stockbroker and proposed AP must enter into the prescribed agreement. The agreement generally covers matters such as the scope of activities, responsibilities, confidentiality, commission or revenue sharing, and termination.

Step 5: Exchange Application

The Trading Member submits the AP appointment application through the applicable exchange's online system, along with the required documents.

Step 6: Verification and Approval

The Exchange reviews the application and documents. If deficiencies are identified, the application may be returned for correction and resubmission. Once the application is found to be in order, the required approval and registration details are provided through the applicable exchange process.

Authorised Person Registration Fees

Registration and maintenance charges can depend on the exchange and segments for which approval is sought. Applicants should verify the latest fee schedule directly with the relevant exchange and stockbroker because charges and requirements can change.

In addition to exchange-related charges, prospective APs should consider other business costs such as office infrastructure, marketing, technology, staffing, and operational expenses when evaluating a sub broker business model.

How Does Revenue Sharing Work for an Authorised Person?

Revenue sharing is an important consideration when choosing an Authorised Person partnership. The AP may receive a share of eligible brokerage or other agreed revenue generated through the business, based on the commercial terms established with the stockbroker.

The exact revenue-sharing percentage and calculation method can vary between brokers. Factors may include client acquisition, trading activity, products offered, business volume, and the terms of the AP agreement.

Before joining a broker, applicants should understand:

Revenue-sharing percentage and calculation method

Eligible products and transactions

Payout frequency

Performance conditions, if any

Applicable business expenses

Technology and support provided by the broker

Terms governing termination or changes to the agreement

A higher revenue-sharing percentage does not necessarily mean a better partnership. The overall combination of revenue sharing, technology, support, brand strength, compliance assistance, and business opportunities should be evaluated.

Important Compliance Requirements

After approval, an AP must continue meeting applicable requirements. The AP should follow the stockbroker's compliance framework, maintain appropriate infrastructure, protect client information, and communicate transparently with investors.

An AP must also operate within the scope of its appointment and should not undertake activities requiring separate regulatory authorisation without the necessary approval.

Can You Start a Sub Broker Business in India in 2026?

Yes, individuals and eligible entities interested in the traditional sub broker business in India can explore the current Authorised Person model offered by registered stockbrokers.

The terminology has changed, but the AP model can provide a business structure for activities traditionally associated with a sub-broker, including client acquisition, relationship management, onboarding assistance, and investor support.

When evaluating opportunities, prospective partners should compare revenue sharing, brokerage arrangements, technology, customer support, training, marketing assistance, compliance support, and the overall terms offered by different stockbrokers.

Conclusion

The SEBI registration process for an Authorised Person is better understood as an exchange-approval process through a registered stockbroker rather than a standalone stockbroker registration with SEBI. The applicant needs to meet eligibility conditions, prepare the required documents, sign the prescribed agreement, and complete the application process through the stockbroker and relevant exchange.

For anyone planning to become a sub broker in India or start an Authorised Person business in 2026, it is important to evaluate the complete partnership structure. Revenue sharing, technology, client support, marketing assistance, compliance requirements, operating costs, and contractual terms can all influence the success of the business.

Prospective partners should verify the latest requirements, fees, documents, and compliance conditions directly with the chosen stockbroker and relevant exchange before submitting an application.