How to become an authorised person in India

Who can become an authorised person?

Exchanges set the eligibility rules, and brokers can add their own. Broadly:

• Individuals: Indian citizens, at least 18 years old, with at least a Class 10 (or equivalent) qualification, and fit and proper (no fraud conviction or relevant disciplinary history).
• Firms and companies: partnership firms, LLPs and companies can apply, with conditions on their partners or directors.
• Knowledge: brokers usually expect relevant NISM certification for the segments you'll deal in, especially derivatives.

Check the latest eligibility circulars of NSE, BSE or MCX, because details change.

Documents you'll usually need

• PAN card and Aadhaar or another address proof
• Educational certificate
• Bank account proof (cancelled cheque or bank statement)
• Passport-size photographs
• Office address proof, if you'll run a branch or office
• Firm documents (partnership deed, incorporation certificate, board resolution) for non-individuals
• NISM certificates, where required

Step by step

1. Shortlist brokers. Compare revenue share, payout timing, platform quality, client support and the training they give partners. Our partner program checklist helps.
2. Apply to the partner program. Most brokers have an online form and a partner manager who calls you.
3. Submit KYC and documents. The broker verifies you and may visit your office.
4. Pay any deposit or fees. Some brokers ask for a refundable security deposit; exchanges may charge approval fees. Get every amount in writing.
5. Sign the AP agreement. Read the clauses on revenue share, clawbacks, termination and client ownership before signing.
6. Exchange approval. The broker files your application with the exchange for each segment (equity, derivatives, currency, commodity). Approval usually takes a few weeks.
7. Start, compliantly. Use the broker's approved marketing materials, never hold client money, and keep records of client interactions.

What to check before you sign

• Revenue share and how it's calculated: on gross or net brokerage, and after which charges. See how AP revenue sharing works.
• Payout schedule: monthly or quarterly, minimum payout and TDS treatment.
• Client ownership: what happens to your clients if you leave.
• Security deposit: is it refundable, and on what conditions?
• Marketing rules: what you may say on social media. SEBI's rules on associating with unregistered finfluencers matter here; see SEBI finfluencer rules for partners.

Common mistakes new authorised persons make

• Choosing on headline share alone: a 70% share of net brokerage after heavy deductions can pay less than 50% of gross. Ask for a worked example.
• Skipping the agreement details: client ownership and termination clauses decide what your business is worth if you ever move.
• Marketing like a tipster: buy or sell calls and profit screenshots break SEBI's rules on finfluencers and put your approval at risk.
• Handling client money: never accept cash, UPI or cheques from clients in your own name. All funds go directly to the broker.
• No plan for clients: clients stay when they get good onboarding and support. Have a simple routine for welcome calls, platform walkthroughs and charge explanations.

Building a sustainable partner business

The partners who last usually focus on a clear audience (for example first-time investors in their city, or a professional community), explain costs and risks honestly, and keep clients through support rather than promises. Track three numbers each month: new accounts opened, accounts that actually traded, and client complaints. If complaints rise, fix the cause before you push for more sign-ups.

If you also work with international partner programs outside India, the same discipline applies; our guide on how to become a forex IB covers that side for readers in other countries.

Frequently asked questions

How long does it take to become an authorised person?

It depends on the broker and the exchange. Document checks usually take days; exchange approval for each segment often takes a few weeks.

Is there a fee to become an authorised person?

Some brokers ask for a security deposit and exchanges may charge fees, while other brokers waive deposits. Ask for every charge in writing before you apply.

Do I need an office to become an authorised person?

Not always. Many brokers accept online-only partners, but if you serve clients from a branch or office, the address must be declared and may be inspected.