Authorised Person Meaning –
As defined by the NSE, an Authorized person or sub-broker is a registered stock exchange member who is authorized to purchase and sell shares on behalf of their clients. An individual must pass the NSE’s membership examination and be approved by the exchange (not mandatory) to become an authorized person This agreement outlines both parties’ duties and rights.
Authorized people, on the other hand, are not directly registered with the exchange. As a result, they are engaged by stockbroking businesses, which assists them in developing a broad business network. Authorised individuals play an important role in the stock market by promoting price discovery and providing liquidity. They also serve as a conduit between investors and publicly traded corporations. Authorized individuals can advise and coach their customers on the best approach to invest their money by acting as an intermediary.
Responsibilities Authorised Person –
- Customer Acquisition – Authorised Person are responsible for finding and acquiring new clients who are interested in trading or investing. They sell the benefits of their brokerage firm, learn about their clients’ financial objectives, and persuade them to create an account.
- Client Activation – Authorised Person play an important role in advising and assisting clients when they begin their trading operations. They offer training sessions, help with platform navigation, and make sure customers are ready to trade.
- Client Servicing – Authorised Person provide clients with continuing support, such as trading calls, addressing transaction-related concerns, and assuring client satisfaction. They seek to provide high-quality services and keep customers by providing great support.
- Business growth- The primary responsibility of an authorised person is to assist in the maximization of agreements within his control. He is in charge of increasing business volume by locating a large number of investors interested in purchasing securities and equity.
- Stock Tips & Calls – Authorised Person frequently provide customers with investment ideas, suggestions, and tips, adding value to their trading decisions and encouraging client loyalty.
- Compliance with Regulatory Rules – Authorised Person follow the laws and regulations established by stock exchanges and regulatory authorities, checking customer information, aiding with documentation, and guaranteeing KYC compliance.
- Account Opening Assistance – Authorised Person help clients open trading accounts by advising them and guaranteeing a smooth account opening procedure.
- Order Execution Support – Authorised Person reliably and effectively execute client orders, serving as dealers or terminal operators as needed.
- All Calling Reports – All the calling done should be recorded as to provided in case of any issue occurs.
- Trade Confirmation- All the trades that is done by Authorised person in behalf of the clients should be confirmed by client first, on recorded calls, emails etc so that a compliance to be followed. Pre and post trade confirmation
- Client Profiling – His Risk appetite based on age, income , present wealth, and future responsibilities and basic nature, Advising suitable investment as per client profile.
- Market Updates – Self updating regarding economy , geopolitics, sectors, govt policies, companies and their financial and future outlook.
- Training Sessions- Training to clients regarding different investment products and trading and investment psychology, webinars as per company sessions,update about the regular seminar, webinars held in the market.
- Informations About Products- New product updates, every client to be updated regarding the products, make sure to use the products for good returns.Technology Updates
- Latest SEBI Updates- Update clients about latest sebi and exchange compliance, rules and regulations continues updates to be delivered to client at continuous basis.
- Registrations Details- Compliance board and registeration certificate at office, also maintain visitor register, with all to be attached in office premises.
Sub Broker Regulations –
The Securities and Exchange Board of India (Stock-brokers and Sub-brokers) Regulations, 1992 have been amended by SEBI. The Securities and Exchange Board of India (Stock-brokers and Sub-brokers – 2nd Amendment) Regulations 2018 replaced these regulations.
They became effective on April 1, 2019. According to this amendment, SEBI now allows sub brokers of stock and commodity exchanges to conduct commercial activities under a single entity. Previously, it was permitted to be performed under different companies.
According to the regulations, the sub broker is responsible for submitting deceptive or false return percentage values to the stock exchange. They owe it to themselves to follow procedures and file returns on time.
Conclusion –
Investing in the stock market remains exciting for Indians. Over the previous 10 years, the variety of assets has expanded considerably. A growing number of people now see stock investment as a viable option for long-term financial security. The capital market would not function as well without authorized individuals.
To get best deal in Broking Franchise –
