By MOFSL
2025-08-21T09:13:00.000Z
4 mins read
Sub-Broker vs Authorized Person vs Remisier: What’s the Right Fit for You?
motilal-oswal:tags/sub-broker-franchise,motilal-oswal:tags/sub-broker-in-india,motilal-oswal:tags/become-sub-broker,motilal-oswal:tags/sub-broker
2025-08-21T09:13:00.000Z

Sub-Broker vs Authorized Person vs Remisier

If you're thinking of starting a career in India’s stock market world, there are multiple ways to begin, without actually being a full-time stockbroker. Three common routes are becoming a Sub-Broker, an Authorized Person, or a Remisier.

Each of these roles lets you connect clients with a registered stockbroker and earn income from their trades. But the structure, responsibilities, and earning potential for each are different. Some involve more freedom and client control; others are low-investment and low-risk options. Knowing which one suits your goals is important before you take the plunge.

In this guide, we’ll break down the meaning of each role, compare the key differences, and help you figure out which one might be the best fit for you, whether you're a finance student, a retired professional, or someone looking for an extra income stream.

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Understanding the Roles: Sub-Broker, Authorized Person, and Remisier

Let’s look at each role in a simple way

Sub-Broker

A Sub-Broker was an individual or firm that acted as a bridge between a main broker (a SEBI-registered stockbroker) and the client. They did not directly trade on the stock exchange but handled clients on behalf of a broker.

However, SEBI phased out the Sub-Broker category in 2018. New registrations as a sub-broker are no longer allowed. Those already registered were required to convert to an Authorized Person.

Authorized Person (AP)

An Authorized Person is appointed by a stockbroker to handle clients and bring in business on behalf of the broker. They operate under the broker's license but can build their own client base. They get access to the broker’s trading platform and can offer clients a wide range of services — just like the broker, but under a tie-up agreement.

To become an Authorized Person, one must register with the stock exchange (like NSE/BSE), and sign an agreement with a broker. This is now the standard path to enter the stock broking business.

Remisier

A Remisier is similar to an agent or referral partner. They simply refer clients to a broker but have no control over their trades or accounts. They earn a commission from the trades their referred clients make. There’s no infrastructure or trading platform needed — just a basic agreement with the broker.

This is ideal for those who want passive income with minimal involvement.

Comparison Chart: Key Differences Between Sub-Broker, Authorized Person & Remisier

Parameters
Sub-Broker (Now Discontinued)
Authorized Person
Remisier
Regulatory Status
Discontinued by SEBI
Recognized by SEBI via Stock Exchanges
Not formally recognized by SEBI
Client Handling
Full access and support
Full access and trading platform
No client access, only referrals
Registration Requirement
Earlier required with SEBI
Yes, with stock exchange and broker
Simple broker agreement
Capital Requirement
Moderate
Moderate to Low
Very Low
Infrastructure Needed
Office setup recommended
Yes, for serious business
Not required
Commission Type
Revenue-sharing model
Revenue-sharing model
Referral commission
Ideal For
Active market players
Those looking to build a client base
Part-timers or network-based earners
Can Offer Trading Services?
Yes
Yes
No

Which One Should You Choose Based on Your Goals?

Here’s a quick guide based on your career and financial goals:

India’s stock market is growing fast — and so are the opportunities around it. Whether you want to make a full-time career, build a side business, or earn through networking, there’s a role for you.

While the Sub-Broker model is no longer active, the Authorized Person route is now the most structured and rewarding, giving you more freedom and earning potential. On the other hand, the Remisier model is perfect for those who want to keep it simple and refer friends or contacts without actively managing clients.

Understand your strengths, time availability, and financial investment capacity — and choose the option that helps you grow.

Know More - Sub Broker Earnings in India | How to change Stock Broker & transfer Stocks | Sub Broker Franchise Cost | Advantages of Sub Broker Franchise | Sub Broker eligibility criteria in India | Authorised Person Courses | Types of Authorised Person Exams

Frequently Asked Questions (FAQs)

Is Sub-Broker registration still allowed?

No, SEBI has discontinued new sub-broker registrations. Existing sub-brokers had to convert to Authorized Persons.

Who can become an Authorized Person?

Anyone with basic qualifications, some capital, and an agreement with a SEBI-registered broker can become one.

Do I need to pass an exam to be an Authorized Person?

Most brokers require NISM certification, but exact eligibility depends on the broker and exchange rules.

What’s the earning potential of an Authorized Person?

It depends on your client base, but it can be a full-time income if managed well.

Is Remisier a good option for part-timers?

Yes. If you just want to refer people and earn commission, it’s a low-effort role.

Can Remisiers see client trades or accounts?

No. They have no control or access to client portfolios.

Is an Authorized Person allowed to trade for clients?

They can place trades on behalf of clients under the broker’s platform.

Do I need an office to be an Authorized Person?

Not always, but having one helps build trust and credibility with clients.

How are commissions paid to Remisiers?

They get a fixed percentage of brokerage from referred clients' trading activity.

What if I want to switch from Remisier to Authorized Person later?

Yes, you can upgrade your agreement with a broker and register accordingly with the exchange.
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