By MOFSL
2025-05-20T06:08:00.000Z
4 mins read
A simple Guide for Sub-Brokers (Authorised Persons): Do’s and Don’ts for Success
motilal-oswal:tags/sub-broker-franchise,motilal-oswal:tags/sub-broker-in-india,motilal-oswal:tags/become-sub-broker,motilal-oswal:tags/sub-broker
2025-05-20T06:08:00.000Z

Guide for Sub-Brokers

Running a business as an Authorised Person (AP) or franchisee is an exciting opportunity; however, it also comes with responsibilities that must be handled with care and consistency. Whether you are new to the role or looking to sharpen your operations, understanding what you should and should not do can be a game-changer. Below is a simple list of Do’s and Don’ts to help you navigate this journey successfully.

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✅ Do’s for Authorised Persons

1. Understand the Brand Ethos:  Make sure that you fully understand and align with the brand’s mission, values, and standards. You are the face of the brand in your territory, and consistency in communication, messaging, and service are the keys.

2. Stay Compliant: Always follow the regulatory and operational guidelines set by the organisation and governing/regulatory bodies. This includes KYC norms, documentation, reporting practices, and ethical dealing standards.

3. Maintain Transparent Communication: Regularly update your organisation on operations, challenges, or feedback from your customers. Two-way communication helps strengthen the relationship and ensures smoother operations.

4. Train Your Staff Continuously: Invest time in training and retraining your team. Your staff must be well-informed about products, customer service protocols, and compliance requirements.

5. Focus on Customer Experience: Prioritize customer satisfaction. From first impression to after-sales service, a seamless customer journey builds trust and loyalty, which ultimately benefits both you and the brand.

6. Keep Accurate Records: Maintain clean and up-to-date records of every transaction, client interaction, and operational task. This is vital for audits and accountability.

7. Promote Locally: While the brand may handle broad marketing campaigns, take initiative in promoting your outlet or services within your local community using events, workshops, or digital campaigns.

❌ Don’ts for Authorised Persons

1. Don’t Misrepresent the Brand: Avoid making unauthorized claims or promises which are not aligned with the brand’s offerings. Misleading clients can lead to reputational damage, and unnecessary arbitration and litigation.

2. Don’t neglect Compliance: Skipping processes like KYC or using shortcuts in documentation may seem convenient but can have serious legal and financial consequences. Any such malpractices should be avoided at all costs.

3. Don’t Operate in Isolation: You are a part of a larger network. Not attending meetings, avoiding feedback, or disregarding brand updates can isolate your business and hinder growth.

4. Don’t Undervalue Customer Feedback: Ignoring customer complaints or suggestions is a missed opportunity. They offer valuable insights for improvement and innovation.

5. Don’t Compete with the Brand: Refrain from selling unauthorized products or services which compete with or dilute the main brand. Such actions breach the agreement and can even lead to termination.

6. Don’t Cut Corners” Whether it is in the area of infrastructure, hiring, or services, cutting costs at the expense of quality will damage your reputation in the long run.

Conclusion

Being a successful Authorised Person is about striking a balance, between independence and brand consistency, ambition and compliance, profit and ethics. Stick to the fundamentals, stay updated, and always put your customer first. With the right approach, your franchisee journey can be both profitable and fulfilling.

Related Blogs: Roles and Function of a Sub Broker | Sub Broker Franchise Without Deposit | GST Compliance On Stock Broking Services | Sub Broker Business Model | Roles and Responsibilities of Sub-Brokers

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