Sub Broker

Most people still search for a “sub broker franchise”, even though the exchange-facing term is now Authorised Person (AP).

In practical terms, you partner with a stockbroker, sign the prescribed agreement and the broker applies to the relevant exchange for your approval. You do not take a separate sub-broker registration directly from SEBI.

The basic model is easy to understand: you bring in and service clients, and the broker pays you under the commercial agreement. Choosing the broker is the harder part.

Two programs that look similar on a landing page can differ sharply on revenue share, deposit, client targets, payout calculations, technology, product range, marketing restrictions, client ownership and exit terms.

Before you compare programs

The highest advertised revenue share is not automatically the best AP deal. Start with the broker and exchange framework, then look at the shareable brokerage base, deposit, targets, support, technology, client ownership and exit terms.

Ask for the current commercial offer in writing before you pay or sign.

What Is a Sub Broker or Authorised Person?

An Authorised Person is an individual or entity appointed by a stockbroker to act as the broker’s agent and provide access to the exchange trading platform.

NSE currently allows individuals, partnership firms, LLPs, and body corporates to be appointed, provided they meet the applicable eligibility conditions.

What matters here is that the AP is not a separate stockbroker. The trading member remains responsible for the AP’s acts and omissions.

Client funds and securities must move through the broker’s accounts, not through the AP’s personal account. The AP’s remuneration also comes from the broker—not directly from the client.

Why Do People Still Search for “Sub Broker Franchise”?

The old term has simply stuck. Brokers themselves still use labels such as business partner, franchisee, authorised partner and channel partner.

We therefore use “Sub Broker” alongside “Authorised Person” on this page so readers can find what they are looking for, while the regulatory explanation follows the current AP framework.

Who Can Become an Authorised Person in India?

Think of the exchange criteria as the minimum floor, not the complete admission policy. A broker can add its own commercial, experience or risk filters.

This is an easy point to miss: a condition shown on one broker’s onboarding page is not automatically a SEBI- or exchange-wide rule.

Zerodha is a useful example. Its published AP criteria go beyond the NSE minimum and currently include being an existing Zerodha client, having an organic lead source, holding a graduate degree and clearing NISM Series VIII.

Those are Zerodha’s program conditions, not the minimum exchange rule for every AP in India.

For the exchange-approval process, documents and eligibility checks, see our Authorised Person registration guide.

How Much Does It Cost to Start a Sub Broker / AP Business?

You will not find one standard “sub broker investment” figure for India.

Your actual outlay comes from three buckets: exchange charges, any broker-specific deposit or onboarding amount, and what you choose to spend running the business.

Do not confuse exchange fees with total startup investment

A broker may collect a security deposit or require office/technology spend in addition to exchange charges.

Conversely, some programs may be designed for a low-infrastructure setup. Always request an itemised cost sheet before comparing brands.

How the Authorised Person Registration Process Works

• Choose a SEBI-registered stockbroker/trading member and review its AP/business-partner program.
• Confirm that you meet both exchange eligibility and the broker’s own commercial criteria.
• Complete KYC/document collection and any required NISM certification for the relevant role/segment.
• Sign the prescribed Trading Member–Authorised Person agreement. NSE says the agreement should cover scope of activities, responsibilities, confidentiality, commission sharing and termination.
• The broker submits the AP registration request to the exchange. On NSE, the broker uses the ENIT portal; the applicant does not file directly with SEBI.
• The exchange reviews the application and, if in order, provides an approval/registration code.
• After approval, complete the broker’s operational setup—partner portal, client acquisition process, payout mapping, compliance and any branch/terminal requirements.

If you are ready to shortlist a partner, compare the best Authorised Person programs in India across support, technology and payout transparency.

Documents Commonly Required for AP Registration

NSE states that the trading member uploads AP appointment documents electronically, and there is no physical submission requirement at the exchange end.

Your broker may still ask for additional declarations or internal onboarding documents.

How Does a Sub Broker Earn Money?

An AP is paid according to the commercial terms agreed with the stockbroker, often described as brokerage sharing or revenue sharing. The mistake is to compare only the headline percentage.

A 70% share on a narrow definition of “net brokerage” can leave you with less money than a 60% share on a cleaner base with fewer deductions.

This example is intentionally simple. It is not a broker quote. Your agreement must define what is included in the shareable base, whether there are slab conditions, incentives, reversals, clawbacks or segment-specific percentages, and when the payout is settled.

Gross Brokerage vs Net Brokerage: Ask This Before Signing

Before signing, ask for a worked payout statement using the exact formula in the agreement.

Statutory charges paid by the client are not necessarily part of the shareable brokerage pool, and “net brokerage” can mean different things at different brokers.

Your economics come from the contract, not from the biggest percentage printed on a sales page.

Popular Authorised Person / Business Partner Programs to Compare in 2026

The table below is not a ranking. It summarises publicly stated program features from official provider pages checked on 8 October 2026. Commercial terms can change, so confirm them in writing before you sign.

Important: Provider-published figures are marketing/commercial disclosures, not regulator-set rates and not a Finobizz ranking. Verify live terms before publication and before a user signs an agreement.

How Should You Compare Sub Broker / AP Programs?

A useful comparison should go beyond “highest commission”.

Which Type of Broker May Suit You?

Key Risks to Check Before Paying a Security Deposit

• Headline revenue share without a written definition of the payout base.
• Non-refundable deposit or unclear refund timeline.
• Monthly client or brokerage targets disclosed only after onboarding.
• One-sided termination or commission-clawback rights.
• Unclear client ownership if you switch brokers.
• Paid advertising or lead-generation restrictions that conflict with your growth plan.
• Office/staff costs presented as optional in marketing but mandatory in the final agreement.
• Income or break-even claims presented without assumptions.
• Cross-selling products without the required separate registration or distributor appointment.

Is a Sub Broker Business Profitable in 2026?

Before signing, ask for a worked payout statement using the exact formula in the agreement.

Statutory charges paid by the client are not necessarily part of the shareable brokerage pool, and “net brokerage” can mean different things at different brokers.

Your economics come from the contract, not from the biggest percentage printed on a sales page.

Can You Run a Sub Broker Business With MFD, DSA or Insurance?

Often, entrepreneurs run more than one financial-distribution activity, but they aren’t one combined licence.

An AP appointment, Mutual Fund Distributor ARN, loan DSA arrangement and insurance agency appointment each have their own rules and contracts.

The broker agreement may also restrict outside activities or how customer data can be reused.

GST, TDS and Tax on Sub Broker Income

Do not treat the amount credited by the broker as final take-home profit. Depending on your structure and turnover, GST registration, invoicing, TDS and income-tax treatment can all matter.

Keep business-wise ledgers and reconcile the broker’s payout statement with your own invoices and tax records.

Frequently Asked Questions

Is Sub Broker registration still available with SEBI?

Not as the old standalone sub-broker category. The current route is appointment as an Authorised Person through a stockbroker/trading member, with exchange approval.

What is the minimum education to become an AP?

NSE currently lists at least 10th standard or equivalent for an individual AP at the exchange level. A broker may impose a stricter requirement.

Do I need a NISM certificate?

Relevant approved users and sales personnel need the applicable certification for the segment. Brokers may also make a specific NISM certificate part of their onboarding criteria.

What is the NSE AP registration fee?

NSE currently lists ₹5,000 per segment for Capital Market, F&O, Currency Derivatives and Debt, and ₹500 per segment for Commodity Derivatives/EGR, plus GST. This is an exchange processing fee, not your total business investment.

Can an AP charge clients directly?

NSE states that AP remuneration should come only from the Trading Member, and the AP should not charge clients directly.

Can I become AP of two brokers?

NSE states that a person shall not be appointed as an Authorised Person by more than one Trading Member.

Which broker gives the highest revenue share?

There is no permanent universal answer. Stock Brokers offer different slabs, and percentages change; the percentage is meaningful only after you understand the payout base, conditions, targets, and deductions.

Is a security deposit compulsory?

It depends on the broker/program. Exchange fees and broker security deposits are different items. Ask for the current written commercial sheet.

How long does AP registration take?

There is no single guaranteed timeline because the broker must complete due diligence and the exchange must approve the application. Treat any fixed turnaround time as an estimate, not a regulatory promise.

Can I work from home?

Some programs support low-infrastructure models, while others may require office or branch infrastructure. The exchange requires adequate infrastructure for the role; the broker decides its own program conditions.

What happens to clients if I leave the broker?

The account relationship is with the stockbroker. Review the termination/client clauses before joining and read Finobizz’s exit/switch guide before assuming clients automatically move with you.

What should I compare first: deposit or commission?

Neither in isolation. First compare the revenue-share base and agreement, then deposit/targets, technology, support, client ownership and exit terms.