PROJECT REPORT ON

Role of Stock Brockers and Sub-brokers in the

Global Capital Market

SUBMITTED BY

Niket Pandey

TYBAF SEMESTER – VI

2022-23

UNDER THE GUIDANCE OF

Shreyas Bondre

SUBMITTED TO UNIVERSITY
OF MUMBAI

VIDYALANKAR SCHOOL OF INFORMATION TECHNOLOGY

(AFFILIATED TO UNIVERSITY OF MUMBAI) VIDYALANKAR MARG,
WADALA (E), MUMBAI 400 037
 VIDYALANKAR SCHOOL OF INFORMATION TECHNOLOGY
(Affiliated to Mumbai University)

Certificate
Niket Sachin Pande
Mr./Ms. of B.Com. in

Banking & Insurance,/Bachelor in Management studies/ B.Com.

in financial

Markets Semester has undertaken & completed

the project work
titled
during the academic year under the
guidance of Mr./Ms. submitted on
to this college in fulfilment of the curriculum of
B.Com. in Banking & Insurance /Bachelor in Management studies/
B.Com. in financial Markets University of Mumbai.
This is a Bonafede project work & the information
presented is True & original to the best of our knowledge and
belief.
PROJECT COURSE EXTERNAL PRINCIPAL
GUIDE CO-ORDINATOR EXAMINER
 ACKNOWLEDGMENT

I hereby acknowledge all those who directly or indirectly helped me

in drafting of this project report. It would not have been possible for
me to complete the task without their help and guidance.

First, I would like to thank my guide ????? for the valuable

guidance in completion of my project. I thank the Head of the
Department Ms.Sindhu Krishnan and department faculty members
for the moral support to complete the project. I thank our project in
charge Ms. Khushboo J for updating me with university guidelines
during my project work. My heartfelt gratitude to the principal Dr.
Rohini Kelkar and the Vice-Principal Mr. Vijay Gawde, for the
opportunity given to do the project work. Finally, I thank our library
staff for assisting me in getting the right source of information.

Last but not the least; I am thankful to the University of Mumbai for
offering the project in the syllabus. I must mention my hearty
gratitude towards my family, other faculties and friends who
supported me to go ahead with the project.
 DECLARATION

Vidyalankar School of Information Technology

(Affiliated to University of Mumbai)
Vidyalankar Marg, Wadala (E),
Mumbai 400 037

I Niket Pandey, student of T.Y.B.Com. Banking &

Insurance/Bachelor in Management studies/ B.Com. In financial
Markets Semester VI, Vidyalankar School of Information
Technology, hereby declare that I have completed the project
on CSR activities of yes foundation – case study on Educo in
academic year 2021-22.

The information submitted is true and original to the best of my

knowledge.

Signature of student

Niket Pandey
 Executive Summary

Write 2 pages

INDEX

SR.NO PARTICULARS PAGE

NO.

Chapter 1:- Introduction

Objectives Of Stock broker and Sub broker

Scope of study's under
sub broker
SWOT
Challenges sub brokers face
Advantages of sub Brokership
Disadvantages of subbrokership
Role of Brokers in Stock Market
Role of Brokers in Stock Market
 INDEX

SR.NO PARTICULARS PAGE

NO.

1. List of Tables/Figures 7
2. Scope of Study 8

Ch .1 Introduction to the Study 9

Ch.2 Introduction to the Topic 69

Review of literature 74
Ch.3
Analysis & findings 82
Ch.4
Findings 84
Ch.5
 Questionnaire (Blank Copy)
Ch.6 86
Bibliography
Ch.7 89

Introduction

The global capital market is a vast and complex system that enables
businesses and governments to access funding from around the world.
The role of sub-brokers in the capital market is critical, as they provide a
vital link between investors and the primary broker. In this project, we
will explore the various roles and functions of sub-brokers in the global
capital market.

Sub-brokers are authorized agents of primary brokers who are registered

with the Securities and Exchange Board of India (SEBI). They work
under the supervision of primary brokers and help them in executing
trades on behalf of clients. The main function of sub-brokers is to assist
primary brokers in acquiring new clients and providing them with
investment advice and recommendations.

Sub-brokers play a significant role in the global capital market by

performing several functions.

One of the primary functions of sub-brokers is to acquire new clients for

the primary broker. They reach out to potential clients and provide them
with investment advice and recommendations.

Sub-brokers provide investment advice to clients and help them in

making informed investment decisions. They analyze market trends,
research stocks, and provide insights into various investment
opportunities.

Sub-brokers assist primary brokers in executing trades on behalf of

clients. They ensure that trades are executed at the right time and at the
best possible price.

Sub-brokers play a crucial role in risk management by ensuring that

clients are investing in a diversified portfolio. They monitor the
performance of investments and provide recommendations for
rebalancing the portfolio.
Sub-brokers are an essential part of the global capital market as they help
in creating a link between investors and primary brokers. They play a
critical role in facilitating the growth of the capital market by providing
investment advice and recommendations to clients. Sub-brokers also help
in improving market efficiency by ensuring that trades are executed
smoothly and efficiently.

Sub-brokers face several challenges in the global capital market. One of

the main challenges is the changing regulatory environment, which
requires them to stay up-to-date with the latest regulations and guidelines.
Another challenge is the increasing competition in the market, which
requires sub-brokers to constantly upgrade their skills and knowledge.

Sub-brokers play a vital role in the global capital market by providing a

link between investors and primary brokers. They perform several
functions, including client acquisition, investment advice, trade
execution, and risk management. Sub-brokers face several challenges in
the market, but their role in facilitating the growth of the capital market
cannot be overstated. As the market continues to evolve, sub-brokers will
need to adapt to new technologies and changing regulations to remain
relevant and competitive.
Objectives Of Stock broker and
Sub broker

 Facilitating buying and selling of securities on behalf of clients.

 Providing investment advice and guidance to clients.

 Developing and maintaining a strong client base by building trust

and credibility.

 Ensuring compliance with regulations and ethical standards.

 Offering value-added services such as research and analysis to
clients.

 Executing trades efficiently and timely.

 Providing access to a variety of investment products and markets.

 Maintaining and updating client information and documentation.

 Conducting market analysis to identify trends and opportunities.

 Building and maintaining strong relationships with stakeholders in

the financial industry.

 Managing and mitigating risks associated with trading.

 Providing investment education and training to clients.

 Maximizing profits and minimizing losses for clients.

 Scope of study's under
sub broker
1. Understanding the basics of the stock market: A sub-broker needs
to have a thorough understanding of the stock market, including its
workings, rules, and regulations.
2. Knowledge of different investment options: Sub-brokers must have
knowledge of various investment options available to clients, such
as stocks, bonds, and mutual funds.

3. Familiarity with trading platforms: A sub-broker must be well-

versed with different trading platforms and the features they offer.
This includes online trading platforms, mobile applications, and
desktop trading software.

4. Knowledge of technical analysis: Technical analysis is an essential

skill that a sub-broker must possess. It involves analyzing market
trends, charts, and graphs to predict the future performance of a
stock.

5. Understanding of financial statements: Sub-brokers need to have a

good understanding of financial statements, including balance
sheets, income statements, and cash flow statements.

6. Customer service skills: A sub-broker must have excellent

customer service skills to handle client queries, provide them with
necessary information, and resolve their concerns.

7. Regulatory compliance: Sub-brokers must comply with regulatory

requirements set by the relevant regulatory authority in their
jurisdiction.

Overall, the scope of study for a sub-broker involves a broad range

of topics related to the stock market, investment options, trading
 platforms, technical analysis, financial statements, customer
service, and regulatory compliance.

SWOT
Strength:-

Sub-brokers are professionals who have expertise in the field of securities

trading and investment. They are equipped with the knowledge and skills
required to provide valuable insights to clients looking to invest in the
stock market. One of the key advantages of sub-brokers is their
established network of clients and investors. This helps them to gain
more business and referrals, thereby expanding their reach and enhancing
their reputation.
Sub-brokers do not require a large initial investment, making it easier to
start and run the business. This low-cost model is particularly attractive to
individuals looking to start their own trading and investment business
without the need for significant capital. Another advantage of sub-brokers
is their flexibility. They can operate in different markets and sectors,
depending on their expertise and interests. This allows them to tailor their
services to the needs of their clients, thereby providing greater value and
building long-term relationships.

In summary, sub-brokers offer a range of benefits to investors looking to

make informed decisions in the stock market. Their expertise, established
network, low cost, and flexibility make them a valuable partner for
individuals and businesses seeking to navigate the complex world of
securities trading and investment.

Weaknesses:-

While sub-brokers offer a range of advantages, there are also some

drawbacks to consider. One significant limitation is that sub-brokers are
dependent on their broker for support, infrastructure, and training. Any
changes in the broker's policies can directly impact the sub-broker's
business. This can limit the sub-broker's flexibility and autonomy,
potentially leading to frustration and reduced earnings.
The sub-brokerage business is also highly competitive, making it
challenging to differentiate oneself from others in the market. This can
lead to price competition, reduced margins, and increased pressure to find
new clients. Additionally, sub-brokers need to comply with various
regulations and policies, which can be time-consuming and costly.
Ensuring compliance can take time away from other business activities,
such as client acquisition and retention.

Another limitation of sub-brokers is their limited income potential. Sub-

brokers typically earn a percentage of the broker's commission, which can
limit their earnings potential. While some sub-brokers may be able to
generate significant income through their business, others may struggle to
earn a comfortable living. This can make it challenging to grow and scale
the business over time.

In conclusion, sub-brokers offer a range of benefits and drawbacks to

those looking to start a trading and investment business. While their
expertise, established network, low cost, and flexibility are attractive,
sub-brokers must also contend with challenges such as dependence on the
broker, competition, regulatory compliance, and limited income potential.
Understanding these factors is essential for anyone considering starting a
sub-brokerage business.

Opportunities:-

Despite the challenges of the sub-brokerage business, there are several

opportunities that can help sub-brokers grow their business. One such
opportunity is the continuously growing securities market. With more and
more people looking to invest in the stock market, sub-brokers can
expand their client base and expertise to take advantage of this trend.

Another significant opportunity for sub-brokers is the use of technology

in the securities market. Technological advancements can improve the
efficiency and effectiveness of sub-brokers' services, enabling them to
provide better insights and analysis to their clients. This can help sub-
brokers differentiate themselves from competitors and attract more
business.

Sub-brokers can also diversify their business by offering different

investment products and services. By expanding their portfolio, sub-
brokers can provide more value to clients and increase their revenue
streams. Additionally, emerging sectors such as fintech and blockchain
offer new opportunities for sub-brokers to expand their business. As these
sectors continue to grow, sub-brokers can develop expertise in these areas
and offer specialized services to clients.

In conclusion, while the sub-brokerage business has its challenges, there

are also opportunities for growth and expansion. By taking advantage of
the growing securities market, technological advancements,
diversification, and emerging sectors, sub-brokers can continue to build
their business and provide value to clients. Understanding these
opportunities is critical for anyone looking to start or grow a sub-
brokerage business.
Threats:-

Although there are opportunities for growth in the sub-brokerage

business, there are also potential threats that sub-brokers need to be aware
of. Economic downturns, for example, can significantly affect the
securities market, directly impacting sub-brokers' business. These
downturns can lead to decreased demand for investment products and
services, making it challenging for sub-brokers to maintain their revenue
streams.

Changes in regulations and policies can also impact the sub-brokerage

business, requiring sub-brokers to adjust their operations and investments
accordingly.

Keeping up with regulatory changes can be time-consuming and

expensive, potentially limiting sub-brokers' ability to provide value to
clients.

Another significant threat to the sub-brokerage business is technological

disruption. The use of technology can disrupt the traditional brokerage
model, leading to increased competition and decreased demand for sub-
brokerage services. As technology continues to advance, sub-brokers will
need to adapt and innovate to stay relevant and competitive.

Finally, sub-brokers also face cybersecurity threats such as data breaches

and hacking. These threats can impact the confidentiality and security of
sub-brokers' and their clients' data, potentially leading to reputational
damage and financial losses. Sub-brokers must implement robust
cybersecurity measures to protect their business and clients from these
threats.

In conclusion, the sub-brokerage business faces potential threats from

economic downturns, changes in regulations, technological disruption,
and cybersecurity threats. Sub-brokers must be aware of these threats and
take steps to mitigate them to ensure the long-term success and
sustainability of their business.
 Challenges sub brokers face

Intense Competition: Sub-brokers are facing increasing competition from

discount brokers and online trading platforms. These new entrants to the
market are able to offer lower fees and commissions, which can make it
difficult for sub-brokers to compete. In addition, other sub-brokers may
have established relationships with clients, making it challenging for new
sub-brokers to attract and retain clients. To overcome these challenges,
sub-brokers must differentiate themselves by offering specialized
services, personalized advice, and tailored investment portfolios.

1. Volatile Market Conditions: The financial markets are constantly

changing, and sub-brokers must be able to manage client portfolios
effectively in different market conditions. This requires a deep
understanding of the markets, investment products, and risk
management strategies. Sub-brokers must be able to anticipate
market trends and respond quickly to changing conditions to
protect their clients' investments.

2. Regulatory Compliance: Sub-brokers are subject to various

regulatory requirements related to client disclosures, trade
execution, and record-keeping. Compliance with these regulations
is critical to avoiding fines and penalties, as well as protecting
clients' interests. Sub-brokers must keep up-to-date with changes in
 regulations and ensure that their practices and processes are
compliant with current rules.

3. Technology Integration: Technology is changing the way sub-

brokers conduct business, and they must adapt to new platforms
and tools to provide efficient and effective services to clients. This
requires investments in technology infrastructure and training to
keep up with the latest trends. Sub-brokers must be able to
integrate various tools and platforms to manage client portfolios,
communicate with clients, and provide up-to-date information on
market conditions.

4. Limited Access to Investment Products: Sub-brokers may have

limited access to investment products offered by primary brokers,
which can limit their ability to provide diversified investment
portfolios to clients. To overcome this challenge, sub-brokers must
develop relationships with primary brokers and other financial
institutions to expand their product offerings. They must also stay
up-to-date on new investment products and strategies to provide
the best options for their clients.

5. Lack of Trust: The financial services industry has been marred by

scandals and fraud, which has eroded trust among clients. Sub-
brokers must work hard to build and maintain trust with clients by
providing transparent and ethical services. This includes being
 transparent about fees and commissions, providing regular updates
on portfolio performance, and maintaining open lines of
communication with clients. Sub-brokers must also adhere to high
ethical standards and act in the best interests of their clients at all
times.

In conclusion, sub-brokers face several challenges in the financial

services industry, including intense competition, volatile market
conditions, regulatory compliance, technology integration, limited access
to investment products, and lack of trust. To succeed in this field, sub-
brokers must be able to navigate these challenges effectively and provide
high-quality services to clients. This requires a deep understanding of the
markets, investment products, and risk management strategies, as well as
the ability to adapt to changing market conditions and new technologies.
Sub-brokers must also maintain high ethical standards and build trust
with clients by providing transparent and ethical services.
 Advantages of sub Brokership

Sub-broker ship offers several advantages to individuals who are

interested in a career in the financial services industry. Some of the key
advantages of sub-broker ship are:

1. Low Start-up Costs: Becoming a sub-broker requires low start-up

costs compared to starting a full-fledged brokerage firm. This
makes it an attractive option for individuals who have limited
financial resources but are interested in entering the financial
services industry.

2. Established Network: Sub-brokers work under the supervision of

primary brokers who have an established network of clients and
relationships with financial institutions. This allows sub-brokers to
leverage the existing network to acquire new clients and provide
them with investment advice.

3. Flexibility: Sub-brokers have the flexibility to work as per their

schedule and manage their business as per their preferences. They
can choose the clients they work with, the investment products they
offer, and the location where they operate.
 4. Training and Support: Primary brokers provide training and
support to sub-brokers to help them understand the financial
markets and investment products. This enables sub-brokers to
provide informed investment advice to clients.

5. Potential for High Income: Sub-brokers earn commissions on the

trades executed on behalf of clients. With a growing client base
and successful trades, sub-brokers can potentially earn a high
income.

6. Limited Liability: Sub-brokers are not responsible for any legal or

financial liabilities arising from the investment decisions made by
clients. This helps in minimizing their risk exposure and protecting
their personal assets.

In summary, sub-broker ship offers several advantages, including low

start-up costs, an established network, flexibility, training and support,
potential for high income, and limited liability. These advantages make
sub-broker ship an attractive option for individuals who are interested in a
career in the financial services industry.
 Disadvantages of subbrokership

While sub-broker ship offers several advantages, there are also some
disadvantages that individuals should consider before entering this field.
Some of the key disadvantages of sub-broker ship are:

1. Limited Autonomy: Sub-brokers work under the supervision of

primary brokers and must follow their guidelines and policies. This
can limit their autonomy in managing their business and providing
investment advice to clients.

2. Intense Competition: The financial services industry is highly

competitive, and sub-brokers face competition from other sub-
brokers, discount brokers, and online trading platforms. This can
make it difficult for sub-brokers to acquire new clients and earn a
high income.

3. Dependency on Primary Brokers: Sub-brokers depend on primary

brokers for support, training, and access to investment products. If
the primary broker fails to provide these services, sub-brokers may
struggle to attract and retain clients.

4. Regulatory Compliance: Sub-brokers must comply with various

regulatory requirements related to client disclosures, trade
 execution, and record-keeping. Failure to comply with these
requirements can result in fines and penalties.

5. Risk Exposure: Sub-brokers earn commissions on the trades

executed on behalf of clients, which exposes them to financial and
legal liabilities arising from investment decisions made by clients.
This can increase their risk exposure and potentially harm their
personal finances.

6. Limited Investment Products: Sub-brokers may have limited access

to investment products offered by primary brokers, which can limit
their ability to provide diversified investment portfolios to clients.

In summary, sub-broker ship has several disadvantages, including limited

autonomy, intense competition, dependency on primary brokers,
regulatory compliance, risk exposure, and limited investment products.
Individuals interested in pursuing sub-broker ship as a career should
carefully consider these factors before entering the field.

Role of Brokers in Stock Market

Suggest the Best Share Deals: Generally, brokers deal in various types of
securities. Leading brokers suggest the best trading deals to clients by
notifying them when to buy or sell stocks. Most brokers suggest trades
based on research reports provided by sub brokers.

1. Margin Financing: In stock trading, margin trading is about the

process where individual traders tend to buy more stocks than their
affordability. Also referred to as “intraday trading,” margin trading
makes it possible to complete all the stock transactions in a single
day.

2. Nowadays, stockbrokers have strong capital reserves. Top

stockbrokers lend capital to investors who want to consolidate their
trading positions. Traders need to pay a margin amount, and
subsequently, they can carry on with trading in the stock market.
Usually, the margin amount is 50 percent.

3. Manages Stock Trading: Stockbrokers trade after receiving

instructions from investors and implement them on a stock
exchange. A full-service stockbroker or online brokers facilitate
stock trading on various trading platforms where investors can
trade by themselves.
 4. Charges a Brokerage Fee against Services: Full-service
stockbrokers charge a brokerage fee for their services to investors.
This charge is a percentage of the trading revenue they generate for
clients. According to law, brokers can charge a maximum of 2.5
percent brokerage fee to their clients. Discount brokers charge a
flat commission which is pre-determined on every executed trade.

Role of a Sub Broker in the Share

Market
Sub brokers work for stockbrokers to acquire clients by offering services
relating to buying and selling shares, bonds, and other securities. Getting
insights into the sub broker business model will help you understand the
profession.

Sub brokers are not registered with the stock exchange. They work on
behalf of stock broking houses and develop a business network for them.

Sub brokers must get registered under SEBI. On top of it, sub brokers get
into a contract with the stockbroker the outlines the rules, rights,
regulations, and economic terms of both parties.

Talking about sub broker eligibility, one has to fulfill certain

qualifications in order to take on sub brokership as their career.
Distinguish Between Stock broker
and Sub broker

Stock brokers and sub-brokers are both professionals who facilitate

trading in the stock market, but there are some key differences between
them.

A stockbroker is a licensed professional who is authorized to buy and sell

securities on behalf of their clients. They act as intermediaries between
buyers and sellers, and they may also provide advice and research to help
their clients make informed investment decisions. Stockbrokers are
registered with regulatory bodies such as the Securities and Exchange
Board of India (SEBI) and they are required to follow certain rules and
regulations.

Sub-brokers, on the other hand, are individuals or entities who work

under a stockbroker and are authorized to buy and sell securities on
behalf of clients, but only within the specific limits set by their broker.
They are also required to follow regulatory guidelines, but they do not
have direct contact with the stock exchange. Sub-brokers are typically
paid a commission by the stockbroker they work for.
1. Licensing and registration: Stockbrokers are required to be licensed
and registered with regulatory bodies such as SEBI, and they must
pass certain exams and meet specific criteria to obtain and maintain
their license. In contrast, sub-brokers are not required to be
registered with SEBI, but they must be affiliated with a registered
stockbroker.

2. Authority: Stockbrokers have the authority to trade securities

directly on the stock exchange on behalf of their clients, while sub-
brokers can only trade within the limits set by their broker. This
means that sub-brokers do not have direct access to the stock
exchange, and they must execute trades through their affiliated
stockbroker.

3. Scope of services: Stockbrokers typically offer a wider range of

services to their clients, such as investment advice, research, and
portfolio management. Sub-brokers, on the other hand, usually
focus solely on executing trades and may not provide additional
services beyond that.

4. Compensation: Stockbrokers are typically paid by commission or

fees based on the services they provide to their clients. In contrast,
sub-brokers are usually paid a commission by the stockbroker they
work for, based on the volume of trades they execute.
 5. Responsibility: Stockbrokers have greater responsibility for the
actions of their sub-brokers. If a sub-broker engages in misconduct,
the stockbroker they work for may be held liable for any damages
caused by the sub-broker's actions.

In summary, stockbrokers and sub-brokers play important roles in

facilitating trades in the stock market. While they both require specific
qualifications and follow regulatory guidelines, stockbrokers have more
authority, provide a wider range of services, and are responsible for the
actions of their sub-brokers.

Overview of Sub broker in big

bullet points

 A sub-broker is an agent or representative of a primary broker who

helps clients buy and sell securities in the stock market.

 Sub-brokers work under the supervision and guidance of the

primary broker and must adhere to their policies and procedures.
 The primary broker provides infrastructure, support, and
technology to sub-brokers to help them conduct their business.

 Sub-brokers are typically smaller organizations or individuals who

do not have the resources to become a primary broker.

 Sub-brokers act as intermediaries between clients and the primary

broker and receive a commission for their services.

 Sub-brokers are responsible for building and maintaining their own

client base and must have strong communication and sales skills.

 They provide investment advice and guidance to clients and may

also offer value-added services such as research and analysis.

 Sub-brokers must comply with regulatory requirements and ethical

standards to maintain the integrity of the stock market.

 They are also responsible for managing and mitigating risks

associated with trading and ensuring timely execution of trades.
 Sub-brokers may work in a variety of financial markets, including
equities, derivatives, and commodities.

 They play an important role in expanding the reach of the primary

broker and increasing market liquidity.

 Successful sub-brokers can eventually become primary brokers or

start their own brokerages.

Overview of stock broker in big

bullet points

 A stock broker is a professional who facilitates the buying and

selling of securities, such as stocks, bonds, and mutual funds, on
behalf of clients.

 Stock brokers work for brokerage firms and are licensed and
regulated by financial regulatory authorities, such as the Securities
and Exchange Commission (SEC) in the United States.

 Stock brokers offer a wide range of investment products and

services to their clients, including investment advice, research, and
analysis.

 They act as intermediaries between buyers and sellers and execute

trades on behalf of clients.
 Stock brokers use a variety of tools and technologies to provide
their services, such as online trading platforms, mobile apps, and
computerized trading systems.

 They must have strong communication, sales, and customer service

skills to build and maintain a strong client base.

 Stock brokers must comply with regulatory requirements and

ethical standards to maintain the integrity of the stock market and
protect the interests of their clients.

 They play an important role in providing liquidity to the market

and helping companies raise capital through initial public offerings
(IPOs) and other securities offerings.

 Stock brokers may specialize in specific financial markets, such as

equities, fixed income, or derivatives.

 They may also work for investment banks, hedge funds, or other
financial institutions, providing specialized services to institutional
clients.

 Stock brokers may earn a salary, commissions, or a combination of

both, depending on their compensation structure.

 Successful stock brokers can advance to management positions,

start their own brokerages, or specialize in a particular area of
finance.

Job Description of Stock brokers

A stockbroker is a licensed professional who acts as an intermediary
between buyers and sellers of stocks and other securities. Their primary
role is to advise clients on investment opportunities, execute trades on
their behalf, and manage their investment portfolios. Some of the key
responsibilities of a stockbroker include:

1. Providing investment advice: Stockbrokers research the market to

identify investment opportunities and offer advice to clients on
buying and selling securities.

2. Executing trades: Once a client has decided to buy or sell a

security, the stockbroker executes the trade on their behalf.

3. Managing investment portfolios: Stockbrokers may manage their

clients' investment portfolios, making investment decisions on their
behalf and adjusting the portfolio as needed to meet their
investment goals.

4. Monitoring the market: Stockbrokers closely monitor the market to

stay up-to-date on changes in the economy and in specific
industries that could impact their clients' investments.
Maintaining regulatory compliance: Stockbrokers must adhere to strict
regulations set forth by the Securities and Exchange Commission (SEC)
and other regulatory bodies to ensure their clients' investments are
protected.

Job Description of Sub brokers

A sub-broker, on the other hand, is a person or firm that acts as an agent
for a stockbroker. They assist in the execution of trades and other tasks,
but they do not have the same level of responsibility as a stockbroker.
Some of the key responsibilities of a sub-broker include:

1. Assisting with trade execution: Sub-brokers help stockbrokers

execute trades and may provide assistance with other tasks related
to investment management.

2. Communicating with clients: Sub-brokers may communicate with

clients on behalf of the stockbroker, providing updates on
investment performance or answering questions about investment
strategies.

3. Maintaining records: Sub-brokers must maintain accurate records

of trades and other transactions to ensure regulatory compliance.
 4. Providing research support: Sub-brokers may provide research
support to the stockbroker by analyzing market trends and
identifying investment opportunities.

Overall, while there are some differences in the roles and responsibilities
of stockbrokers and sub-brokers, both play important roles in the
investment industry by helping clients make informed investment
decisions and manage their portfolios effectively.

Types of Sub Brokers in India

In India, there are two main types of sub-brokers:

1. Individual Sub-Broker:
Individual sub-brokers are self-employed individuals who work
under the supervision of a registered stockbroker. They assist the
registered broker in acquiring new clients, taking orders from
clients, executing trades, and providing other related services. They
earn a commission or a share of the brokerage fee for the services
they provide.
Individual sub-brokers are required to complete a certification
course and pass an examination conducted by the National Stock
Exchange (NSE) or the Bombay Stock Exchange (BSE) before
they can begin working as a sub-broker. They must also obtain a
registration certificate from SEBI and renew it annually.
Individual sub-brokers are typically allowed to work with only one
registered broker at a time, but they can switch to another broker if
they wish to do so.

2. Corporate Sub-Broker:
Corporate sub-brokers are entities such as partnership firms,
limited liability partnerships (LLPs), and private limited companies
that are registered with a registered stockbroker. They operate in a
similar manner as individual sub-brokers but on a larger scale.
Corporate sub-brokers are required to have a minimum net worth
of INR 1 million and must obtain a registration certificate from
SEBI to operate as a sub-broker. They must also appoint a
qualified person as a principal officer to oversee their operations.

Corporate sub-brokers can have multiple employees and can work

with multiple registered brokers at the same time. They typically
charge a commission or a share of the brokerage fee for the
services they provide.

In conclusion, sub-brokers play an important role in the Indian

stock market by assisting registered brokers in carrying out various
activities related to trading. Both individual and corporate sub-
brokers are required to be registered with SEBI and must follow
the rules and regulations set forth by SEBI to operate in India.
How to become Sub Broker in
Indian
To become a sub-broker in India, you will need to follow a few
steps. Here's a step-by-step guide on how to become a sub-broker:

3. Acquire knowledge: To become a sub-broker, you should

have knowledge about the securities market and its various
instruments. You can gain knowledge through self-study,
online courses, or by enrolling in a training program
conducted by a stock exchange or a recognized institution.

4. Educational qualifications: There are no specific educational

qualifications required to become a sub-broker. However,
having a degree in finance or commerce can be helpful in
understanding the market dynamics.

5. Register with SEBI: To become a sub-broker, you need to

register with the Securities and Exchange Board of India
(SEBI). You will need to fill out the registration form,
provide the required documents, and pay the registration fee.

6. Choose a broker: To become a sub-broker, you need to work

under a registered broker. Choose a broker who has a good
reputation in the market and has a sound business model.

7. Sign an agreement: Once you have chosen a broker, you

need to sign an agreement with them. The agreement will
 contain the terms and conditions of your association with the
broker, including the commission structure, services to be
provided, and other details.

8. Obtain certification: To become a sub-broker, you need to

obtain certification from the National Institute of Securities
Markets (NISM) or the Bombay Stock Exchange (BSE).
This certification is mandatory for anyone who wants to
work as a sub-broker in India.

9. Start trading: Once you have completed all the above steps,
you can start trading as a sub-broker. You will need to
follow the rules and regulations set by SEBI and the stock
exchange in which you are registered.

In conclusion, becoming a sub-broker requires acquiring

knowledge, registering with SEBI, choosing a broker, signing an
agreement, obtaining certification, and following the rules and
regulations. It is essential to have a good understanding of the
securities market, financial instruments, and trading strategies to be
a successful sub-broker.
How to become sub broker under
angle one

If you are interested in becoming a sub-broker under Angle One,

you can follow the below steps:

Step 1: Do your Research

Research and understand the various products and services offered
by Angle One, the brokerage fees charged by them, the type of
support and training they provide to their sub-brokers and the
eligibility criteria for becoming a sub-broker.

Step 2: Meet the Eligibility Criteria

To become a sub-broker under Angle One, you need to meet
certain eligibility criteria such as age, educational qualifications,
and experience in the financial industry. Ensure that you meet all
the eligibility criteria before proceeding further.

Step 3: Register with SEBI

To become a sub-broker, you need to register with SEBI
(Securities and Exchange Board of India), the regulatory body for
the securities market in India. You can visit their website and apply
for registration as a sub-broker.

Step 4: Get a Certification

You need to get certified by passing the NISM (National Institute
of Securities Markets) certification examination. NISM provides
various certifications related to the securities market, including the
NISM Series VII Securities Operations and Risk Management
Certification Examination, which is mandatory for sub-brokers.

Step 5: Approach Angle One

Once you have registered with SEBI and obtained the necessary
certifications, you can approach Angle One and express your
interest in becoming a sub-broker. You can reach out to them
through their website or contact their customer support.

Step 6: Provide Necessary Documents

Angle One will require you to submit certain documents, including
your SEBI registration certificate, NISM certification, PAN card,
Aadhaar card, bank account details, and other KYC documents.

Step 7: Sign Agreement

After the necessary documents are submitted and verified, you will
be required to sign an agreement with Angle One, which will
outline the terms and conditions of your partnership with them.

Step 8: Complete Training

Angle One will provide you with training and support to help you
understand their products, services, and the processes involved in
being a sub-broker. You will need to complete the training
successfully before you can start working as a sub-broker.

Step 9: Start Working as a Sub-broker

After completing the training, you can start working as a sub-
broker under Angle One. You will receive support and guidance
from them to help you grow your business and increase your
revenue.

In summary, becoming a sub-broker under Angle One involves

researching, meeting the eligibility criteria, registering with SEBI,
obtaining necessary certifications, approaching Angle One,
providing necessary documents, signing an agreement, completing
training, and starting to work as a sub-broker.