Business news

Eligibility Criteria for becoming a Sub Broker in India

Stock market investing has long been regarded as one of the most popular options for institutional and risk-taking investors.

But there has also been a significant increase in the number of retail investors in India in recent years. The COVID-19 pandemic’s impacts only served to amplify this further.

In fact, in the cash category, the proportion of non-institutional (or retail) investors reached a decade-high of 68% in June 2020.

Together, these changes have increased demand and opened up new business prospects for investors in the sector.

Sub-brokers’ Role is Becoming More Important

Broking companies are just some of the ones with full calendars and hectic days due to the influx of investors into the markets.

Additionally, the significance of sub-brokers in maintaining the investment ecosystem has grown.

In essence, a sub-broker represents a registered trading member or stockbroker and assists investors in dealing with securities and financial assets.

It could be a smart idea to start a sub-broking business if you are passionate about investing in financial assets like stocks and securities and have a strong understanding of the financial markets.

The role of Sharekhan Sub Broker is the same as mentioned here.

Think about why you want to work as a sub-broker

Answering why you want to become a sub-broker is the first step in the process. Most of the time, the simple explanation is that stockbroking is the greatest method to gain money.

In addition, other requirements include the capacity to assess current social, political, and economic developments that affect markets.

It would be best if you had a solid grasp of stock market dynamics. To become a sub-broker, one must also have the financial means to make investments such as infrastructure and initial fees.

Although as Angel Broking Franchise, the requirement of Investment is very low compared to any other franchise business.

Sub-broker Eligibility Requirements

Depending on the trading member you want to work with, different sub-brokers may need to meet different eligibility requirements.

However, generally speaking, these are some of the requirements you must meet or have.

  1. Should possess at least an H.S.C.
  2. Must be at least 21 years old.
  3. Should not be a trading member of the exchange.
  4. Should not be a registered sub-broker with another trading member.
  5. Should not be a stakeholder or partner of a registered sub-broker.
  6. Should not have defaulted on any other stock exchange.

Additional Desired Sub-Broker Qualifications

Other qualities are preferred in addition to the qualifying requirements indicated above. Here is a closer look at a few of them.

NISM Certifications: To operate as a stock broker in the relevant segment, a person must have a valid PAN Card and pass the following NISM Certification Examinations:

  • NISM Equity Sales Certification Examination
  • NISM Equity Derivatives Certification Examination

Ineligibility terms

Sub-brokers should abide by the SEBI-established code of conduct. The following are people who are ineligible to work as stock brokers/sub-broker:

  • A person who has been deemed bankrupt.
  • A person who has been found guilty of a fraud or dishonesty-related crime.
  • A person barred from or designated a defaulter by another stock exchange.
  • Regulatory authorities like SEBI, the RBI, etc., May exchange or prohibit you from trading in securities.
  • A person barred from obtaining employment due to disqualification under the securities contract (regulations) act of 1956 or its implementing rules.


Sub-broking may be a successful endeavor for those with a keen interest in the financial markets and those who are enthusiastic about investing.

Today, many of the top stockbroking firms in the nation have their sub-broking and partnership programs for those looking to work as sub-brokers.

Additionally, millennials who want to become entrepreneurs, launch their businesses, and work whenever they want can choose a career in this industry.

It may aid professionals and stay-at-home moms in broadening their areas of competence and developing their professional networks.

If you’re considering entering this market, be sure you’re familiar with the sub-broker eligibility requirements and sub-broker requirements established by the trading member you wish to collaborate with.


To Top

Pin It on Pinterest

Share This