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Stock markets have only been growing over the years, and this is largely due to the multitude of investors going into it on an almost daily basis. As a result, brokerages are doing well. The brokers are not the only ones to prosper from a boom in the stock markets. Sub brokers (also known as Authorised Person) benefit too and in case you want to start a sub broker franchise, then you should know what a sub broker’s role is.
As the stock markets have only grown, they have led to the development and the blossoming of another industry. This is the brokerage industry which is big in India. Due to the high demand to invest in the stock market by investors, brokers are much in demand, especially online, if you wish to open a demat account and learn the ins and outs of trading in the equity markets. Most brokerages offer highly digitised platforms so stock investing becomes easy to undertake online. In the midst of the world of brokerages is the sub broker franchise, paying a large role in the finance industry.
The sub broker (also known as Authorised Person) has a different role to play in the investment arena, which may or may not be directly linked with investing. The sub broker (also known as Authorised Person) role was created when investment was largely done in a physical way when no online platforms existed. However, it still continues today as it is an essential part of the broking industry. So, what is a sub broker? A sub broker (also known as Authorised Person) technically performs a lot of the activities that a broker performs, but acts as a middle person between the broker and the investor.
Once you are clear about the sub broker (also known as the Authorised Person) meaning, you can grasp the role that a sub broker may play. The stock broker acts as a middle person between exchanges and investors. The sub broker, when they are involved, may interact directly with clients on behalf of the broker and solve certain issues of the investor. For instance, if you wish to get help for investing in any upcoming IPO, a sub broker can assist you with this, without a broker interacting with you.
The sub broker often works in close proximity with the broker, and primarily, is responsible for attracting business for any brokerage. Providing ancillary services to clients is also the task of the sub broker. Sometimes, a large brokerage may not have the bandwidth to deal with a large amount of clients and investments, so a sub broker franchise helps them to manage and run their business effectively. A sub broker is also known as an “authorised person” as sub brokers (also known as Authorised Person) may issue confirmation and contract notes on behalf of the brokerage. These are issued to investors when any stock transactions take place. Sub brokers are officially certified entities and have authorisation to work from the Securities and Exchange Board of India (SEBI). Additionally, sub brokers (also known as Authorised Person) earn certain commissions for each transaction that a client undertakes through them.
The stock market universe gives a world of opportunity to stock brokers, sub-brokers, and investors, who all have roles to play in its growth and positive trajectory. Whether you open a demat account or invest in an upcoming IPO, there is a role to play by the brokerage and the sub broker (also known as Authorised Person). Brokers may be listed by the exchanges, but sub-brokers can do some lucrative business by earning commissions and learning the trade from stock brokers.
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