In today’s times, the stock market is no longer limited solely to investment. Many individuals now view it as a viable career option, offering the potential for substantial growth with a relatively modest initial investment. Consequently, the ‘Authorised Person’ model has gained rapid popularity, as it allows individuals to partner with a registered stock broker and provide market-related services to investors. The proliferation of Demat accounts, online trading platforms, and growing financial awareness has created abundant opportunities in this sector for newcomers.
What Is an Authorised Person in the Stock Market?
In the stock market, an “Authorised Person” refers to an individual or firm that affiliates with a registered stock broker to assist in providing brokerage services to investors. Their role involves helping clients open a free Demat account, understand the market platform, and providing basic assistance related to the brokerage process.
This arrangement operates in accordance with the rules and regulations established by SEBI and the stock exchanges. Simply put, an Authorised Person serves as a professional intermediary, acting as a connecting link between the broker and the investor.
Why Is the Authorised Person Model Becoming Popular?
Due to growing financial awareness and the burgeoning culture of online investing in India, the Authorised Person model is rapidly gaining popularity. Low investment requirements and a flexible working structure are considered to be the primary reasons behind this trend.
- Low-Cost Business Opportunity: Launching this model does not require an elaborate office setup or substantial capital investment. Consequently, many new finance professionals and entrepreneurs view it as a low-cost business opportunity.
- Growing Retail Participation in India: Over the past few years, the number of Demat accounts and retail investors in India has witnessed rapid growth. Mobile trading apps and streamlined onboarding processes have successfully extended the reach of investing opportunities even to smaller towns and cities.
- Flexible Income Potential: Authorised Persons typically operate on a brokerage-sharing model. This offers the opportunity to generate recurring income based on client activity, thereby creating the potential for long-term earnings.
- Work Flexibility: This role can be undertaken on either a full-time or a part-time basis. Many finance trainers, content creators, and relationship managers successfully manage this work alongside their existing professional commitments.
Eligibility Criteria to Become an Authorised Person
To become an Authorised Person in India, one must fulfill certain basic eligibility conditions in accordance with the guidelines established by stock exchanges and brokers.
Minimum Age: The applicant must be at least 18 years of age and an Indian citizen.
Educational Qualification: Generally, it is considered mandatory for the applicant to have passed at least the 10th grade. Many brokerage firms give preference to candidates with a background in finance or higher education.
Basic Documents: A PAN Card, Aadhaar Card, bank account details, proof of address, and a passport-sized photograph are mandatory requirements.
Office Infrastructure: According to stock exchange regulations, an Authorised Person must possess basic infrastructure such as office space, a computer setup, an internet connection, and adequate manpower to ensure that client services can be handled efficiently.
Market Knowledge: A basic understanding of the stock market and the trading process is considered essential. Many brokers also give preference to candidates holding NISM certification.
Documents Required for Registration of Authorised Person
At the time of Authorised Person registration, brokers and exchanges request certain key documents for KYC, identity, and business verification.
| Document | Purpose |
| PAN Card | Identity verification and financial records |
| Aadhaar Card | Address proof and KYC verification |
| Bank Account Proof | Brokerage payout and commission transfers |
| Passport Size Photo | Registration and profile verification |
| Address Proof | Residential or office address verification |
| Educational Proof | Basic eligibility verification |
| GST Registration (If Applicable) | Business tax compliance |
| Office Infrastructure Details | Client handling and setup verification |
Step-by-Step Process to Become an Authorised Person
Becoming an Authorised Person involves completing several key steps, ranging from selecting the right broker to completing the exchange registration process.
- Choose a Registered Stock Broker: First and foremost, select a SEBI-registered stock broker that possesses a strong market reputation, a robust trading platform, and excellent partner support.
- Understand the Partnership Model: Prior to registration, it is essential to thoroughly understand the brokerage-sharing structure, client support responsibilities, and the payout model.
- Submit Documents and Complete Verification: Subsequently, you must submit documents such as your PAN card, Aadhaar card, bank account proof, and office details. The broker then carries out the KYC (Know Your Customer) and background verification processes.
- Exchange Registration Process: Following verification, the broker initiates the Authorised Person registration process with exchanges such as the NSE, BSE, or others. Once approval is received, the official activation takes place.
- Start Client Onboarding: Upon the completion of the registration process, you can begin acquiring clients, guiding them through market procedures, and assisting them with the account opening process.
How an Authorised Person Can Help Investors Open Free Demat Account
- The process is initiated by collecting the PAN card, Aadhaar, and bank details.
- The AP facilitates clients to open a free Demat account on their broker’s platform seamlessly.
- Pocketful offers features such as zero AMC, zero account opening charges, and no hidden fees.
- The account is activated quickly through online KYC and Aadhaar OTP verification.
- Once the account is activated, the AP provides support regarding basic app usage and investing.
Top Stock Brokers Offering Authorised Person
Many brokerage firms offer Authorised Person programs, which provide features such as partner onboarding, client support, and brokerage sharing.
- Pocketful
- Zerodha
- Angel One
Overview of broker for Authorised Person
- Pocketful: Pocketful’s partner onboarding process is considered quite simple. It offers benefits such as ₹0 AMC (Annual Maintenance Charges) and ₹0 account opening fees. The platform also provides advanced trading tools, AI-based features, and algorithmic trading support. Its MTF (Margin Trading Facility) interest rate starts at 5.99%, a factor that leads many active traders to consider it.
- Zerodha: Zerodha is renowned for its stable trading platform and extensive retail client base. Many Authorised persons prefer it because its ecosystem is considered user-friendly for both beginners and active traders alike.
- Angel One: Angel One boasts a significantly large partner network. This broker provides research support, digital onboarding capabilities, and client servicing tools. Its market reach is considered robust, extending even into many smaller cities.
How Do Authorised Persons Earn Money?
The income of Authorised Persons is primarily based on a brokerage-sharing model. Earnings fluctuate according to client activity and trading volume.
Brokerage Sharing: The Authorised Person receives a portion of the brokerage generated from clients’ trading activities.
Recurring Income: Active clients help generate a regular stream of income over the long term.
Other Products: Some brokers also offer earning opportunities through IPOs, mutual funds, and other investment products.
Conclusion
With growing investment awareness in India, the ‘Authorised Person’ model is rapidly gaining popularity. With the right broker, a basic understanding of the market, and strong client relationships, this can evolve into a long-term career opportunity within the finance industry.
