An Authorised Person is an expert who works under a registered stockbroker to bring in new clients and support existing ones. He is the expert who helps with their trading and investment decisions. This role was previously called sun-broker.
He is the expert or the registered person who has the required skills and licenses to operate in the stock market. It is very important to note that you should not work as the AP or Authorised Person if you do not have a valid license as needed.
This guide offers you all the details you need to start your career as an authorised person.
Who is an Authorised Person?
An Authorised Person is not a member of the stock exchange directly. Instead, they are associated with a registered trading member, typically a broking house. These are the people who work on a commission basis to expand that broker’s client base.
The main tasks that you will do are as follows:
- Onboarding new investors
- Assisting existing clients with trading decisions
- Acting as a local point of contact for the clients
- Support with trading and investing
- Answering the questions and helping investors
Every Authorised Person must hold a valid Certificate of Registration issued by SEBI. Operating without one is not permitted under current market regulations, and the responsibility for confirming this compliance sits jointly with both the individual and the broker they represent.
Why Registration is Mandatory
SEBI requires every broking house to sign a formal agreement with each of its Authorised Persons. This agreement sets out the rights and responsibilities of the AP. It also highlights the business conduct expected from both sides.
It specifically states that an unregistered Authorised Person cannot deal in securities, and it places direct responsibility on the trading member to verify that every person representing them is properly registered.
This structure exists to protect investors. An Authorised Person interacts directly with the public, often handling sensitive financial decisions on a client’s behalf, and SEBI’s registration requirement ensures a baseline level of accountability before someone is allowed to take on that role.
Eligibility Criteria for Authorised Person Registration
Not everyone can register as an Authorised Person. A few specific conditions need to be met first.
| Criteria | Requirement |
|---|---|
| Main | Should be a citizen of India.Should not be less than 18 years of age.Should not have been convicted of any offence involving fraud and dishonesty.Should have good reputation and character. |
| Education | 10+2 (Higher Secondary), though higher qualifications are viewed favourably |
| Certification | NISM certification in relevant modules is typically required |
| Office infrastructure | A dedicated office space meeting the broker’s operational standards |
| Financial standing | Net worth requirements as prescribed under Schedule VI of SEBI Regulations |
| Fit and proper status | Compliance with fitness norms under Schedule II of SEBI Regulations, 2008 |
| Experience | Relevant trading or market experience, more heavily weighted if formal qualifications are below HSC level |
Applicants who fall short on any of these points can get their application rejected back. They can reapply once they have the document set ready. But to ensure that the process is not delayed, you should check all the needs well in advance.
Documents Required for Registration
Incomplete documentation is one of the most common reasons applications get delayed. SEBI expects a specific set of documents to be submitted within seven days of the initial application.
| Document Category | Accepted Proofs |
| Identity proof | PAN card, Aadhaar card, passport |
| Address proof | Latest electricity or telephone bill, valid ration card, passport, driving license, or recent bank statement |
| Educational proof | Mark sheets or certificates confirming a minimum 10+2 qualification |
| Experience or certification proof | NISM certification, or documented experience if the qualification is below HSC |
| Financial proof | Net worth certificate or supporting financial documents as required by the broker |
| Photographs | Recent passport-size photographs |
Keep both physical and digital copies ready before starting the application, since the exchange requires physical submission of certain documents within a strict window.
Step-by-Step Authorised Person Registration Process
The registration itself moves through a defined sequence once you have your documents and broker relationship in place.
1. Apply through the broker’s electronic platform
The trading member starts your Authorised Person (AP) registration by logging into the exchange portal, such as the NSE Electronic Application Entry Facility (ENIT), and filling out the online application.
2. Submit physical documents within seven days
Any delay beyond this window typically results in automatic rejection of the application, so this step needs immediate follow-through.
3. Pay the application fee
A fee, historically set around ₹2,000, needs to be made available in the broker’s Exchange Dues Account, which then gets debited as part of processing.
4. Address any deficiencies
If SEBI or the exchange finds gaps in the application, it gets sent back to the trading member for correction and resubmission.
5. Registration fee processing
Once the application clears review, the exchange collects the SEBI registration fee by debiting the broker’s Exchange Dues Account.
6. Final approval from the Stakeholders Relationship Committee
This is the last formal checkpoint before registration is granted. Once you have this, you have passed through the basic steps, and you can actually start working as an AP and earn an income.
7. Certificate issuance
SEBI issues the registration certificate along with a unique registration number and date, which is shared with the trading member.
If you are already a SEBI-registered Authorised Person and want to enrol with a new exchange, you generally do not need to repeat the full process. A membership transfer request usually covers this instead.
Registration Fees and Charges
| Fee Type | Approximate Amount | When Paid |
|---|---|---|
| Fee Type | Approximate Amount | When Paid |
| Application fee | ₹2,000 | At the time of submitting the application |
| SEBI registration fee | Varies by exchange and segment | After application approval, before certificate issuance |
| Annual charges | Set by the broker and exchange | Recurring, typically yearly |
Exact figures can shift over time and differ slightly across exchanges. Ensure that you check well before you start.
Code of Conduct and Ongoing Compliance
Registration is not a one-time formality. Authorised Persons are expected to maintain compliance throughout their working relationship with the broker.
- Follow the exchange’s code of conduct and bylaws consistently, not just at the time of onboarding.
- Pay annual charges and fees on time, since lapses can affect your standing with the broker and the exchange.
- Adhere to Schedule II conduct requirements, covering fair dealing, disclosure, and client interaction standards.
- Maintain the prescribed net worth under Schedule VI throughout your registration period, not just at application.
Why People Choose to Become an Authorised Person
Beyond the registration mechanics, it helps to understand why this path appeals to people in the first place.
| Factor | What it Means for You |
|---|---|
| Low entry barrier | No exchange membership required, unlike becoming a full trading member |
| Commission-based income | Earnings scale with the client base and trading volume you help generate |
| Flexible setup | Many brokers allow this to be run alongside other work, depending on office and infrastructure norms |
| Local market access | You can serve investors in areas where the broker itself has limited physical presence |
| Backed by an established broker | You operate under the broker’s compliance, technology, and support infrastructure rather than building this alone |
This combination, lower entry costs than starting an independent brokerage, along with the backing of an established platform, is what draws most people into this role in the first place.
Common Reasons Applications Get Rejected
If your application is rejected, then there are some common issues that can be the reason behind the same. You can find the common reasons as follows:
- Missing the 7-day document deadline: This is the single most common and most avoidable reason applications fail. Have your documents ready before you submit the initial application, not after.
- Incomplete or mismatched address proof: Documents that don’t clearly match the applicant’s current address, or that fall outside SEBI’s accepted list, frequently get flagged for resubmission.
- Insufficient net worth documentation: Applicants sometimes underestimate what’s required under Schedule VI and submit financial proof that falls short.
- Weak or missing certification: Applicants without a strong educational background who skip the required NISM certification often see their applications returned.
Final Thoughts
Becoming an Authorised Person gives you a genuine path into the broking business without needing to become a full exchange member yourself, but the registration process requires preparation. Get your documents, certifications, and financial proof in order before you apply, follow the seven-day submission window strictly, and maintain compliance well after your certificate is issued, since registration is an ongoing responsibility, not a one-time checkbox.
If you are exploring this path, Pocketful’s partner program is worth looking into as one option for Authorised Persons who want a modern platform and transparent commission structure behind them.
Frequently Asked Questions (FAQs)
Who is eligible to become an Authorised Person?
Anyone with a minimum of 10+2 education, relevant NISM certification, adequate office infrastructure, and the required net worth under SEBI’s Schedule VI norms can apply, subject to fitness checks under Schedule II.
How long does Authorised Person registration take?
Timelines vary by broker and exchange, but the process typically takes a few weeks from application submission to certificate issuance, assuming all documents are submitted correctly and within the seven-day window.
Is the sub broker designation still used today?
Yes. Many people use sub-broker in place of Authorised Person till today. But SEBI has already changed the name.
Do I need to re-register if I want to work with a different exchange?
No. If you are already SEBI-registered as an Authorised Person, you typically only need to request a membership transfer rather than completing the full registration process again.
What happens if my application has missing documents?
The application gets sent back to your trading member for correction and resubmission rather than being rejected outright, though repeated or serious deficiencies can lead to disqualification.
