India’s growth history is multi-decadal. Among the main factors driving growth are a thriving economy, growing incomes, a youthful population, strong consumption, and supporting policies. For investors, this offers enormous potential for wealth development and investment. Additionally, there is a very low level of access to financial services in India, including mutual funds, insurance, and direct stock market investment, to mention a few. This indicates a vast expansion runway. Thus, as an Authorised Partner (AP), you can help your clients develop a successful business in addition to assisting them with their financial journey!
To understand what is an authorised partner and how to become authorised partner, read this article below.
Contents
What is an Authorised Partner?
An Authorised Partner is connected to a stockbroker who is registered with SEBI. An Authorised Partner can represent a full-time business owner or someone seeking ways to boost their income. The AP serves as an intermediary for the stockbroker and the clients. The AP offers his or her clients a range of financial services by utilising the stockbroker’s infrastructure, platform, products, and experience. The AP receives a commission, broking, or a portion of the profits made from the clients’ transactions as a result of this.
The fact that becoming an Authorised Partner takes only a small investment is one of its greatest benefits. Unlike other businesses, starting a broker franchise doesn’t require a large early investment. Becoming an Authorised Partner also gives you the freedom and flexibility to manage your company.
Criteria to Follow for Becoming an Authorized Partner
The criteria for becoming an authorised partner are as follows.
- Should be an Indian citizen.
- Your secondary education should have been completed.
- The National Institute of Securities Markets (NISM) certification course offered by SEBI should be finished.
- You should have your address, whether it is your home or workplace.
Documents Required to Become an Authorised Partner
The documents required to become an authorised partner are as follows.
- Bank account details and cancelled cheque
- 6-months bank statement
- Pan Card & Aadhar Card
- Education proof
- Photo
Steps to Become an Authorised Partner
The steps involved in becoming an authorised partner are as follows:
- Step 1: Visit a trustworthy website or MF app.
- Step 2: Complete the form with all the information and click the “Click to Apply” button.
- Step 3: The agent will get in touch with you soon to assist you in selecting a franchisee model.
- Step 4: Depending on the model you select, this will be followed by the deposit and submission of pertinent documentation.
- Step 5: Your account will be activated and you can begin operating your business right away when your documents have been validated.
Skills Required to Become an Authorised Partner
The skills required to become an authorised partner are as follows.
- Knowledge and Experience: Experience in finance or a similar industry; familiarity with trading, investments, and stock markets.
- Certification and Registration: To become an Authorised Partner, register with SEBI and earn NISM certification.
- Office and Infrastructure: Establish offices and infrastructure for effective client services and transaction management.
- Broking House Inquiry: Be prepared for enquiries from broker houses about your tech knowledge, office space availability, online trade experience, and financial skills.
Responsibilities Involved in Become an Authorised Partner
The responsibilities to become an authorised partner are as follows.
- Client Acquisition and Management: Manage investment portfolios, onboard new clients, and offer individualised assistance to comprehend clients’ investment preferences, risk tolerance, and financial objectives.
- Investment Guidance: Provide individualised guidance on investments based on market research; suggest stocks, bonds, and securities to assist customers in reaching their financial objectives.
- Trade Execution: Place purchase or sell orders on behalf of clients for faster trade execution through the broking house.
- Relationship Maintenance: Establish and maintain solid client relationships by keeping clients informed about market trends and portfolio performance regularly. Respond to their questions and concerns. When interacting with clients, Authorised Partners need to stick to the ethical guidelines and regulatory regulations established by SEBI to preserve their reputation and conduct business lawfully.
- Keeping Up with Current Market Trends: Being informed about new investment products, economic conditions, market developments, and emerging fintech trends is essential to Authorised Partners’ success. This guarantees that the advice they give their clients is correct and relevant.
Conclusion
Authorised Partners serve as intermediary organisations for clients and broker businesses, helping clients make investment choices without having to be members of a stock exchange. NISM certification, SEBI registration, and association with a licensed brokerage business are requirements for being an Authorised Partner. Authorised Partners receive fees and commissions for their customer services, and adherence to SEBI requirements is crucial.
