Do you want to become a sub-broker? Here are the basic eligibility criteria

by Pankhudi Dave Head Finance Manager

Share market investments have become the leading investment choice among young and old investor. However, it is not possible for one to directly invest in the stock market. You need to select a depository participant – a financial institution like a bank or a brokerage company for your investments. And since there are few brokers, most of the investment work is done through sub-brokers. In you are interested in the stock market; you can consider a career as a sub-broker. Let’s find out what sub-broking means and how to become a sub broker in India.

Sub broker – meaning and definition

As per the National Stock Exchange (NSE) of India, sub-broker is defined as any person who is not a trading member of any Stock Exchange. Such an individual only acts on behalf of other trading members (investors, clients etc.), serving in the capacity of an agent. A sub-broker may also be an individual serving as an assistant to investors interested in dealing in shares and other market securities, through depository participants like banks, brokerage firms and other such financial investment companies.

Eligibility criteria for becoming a sub-broker in India

Now that you know what is sub-broker, let’s find out how to become one. Essentially, you need to fulfil some basic eligibility criteria as laid down by brokerage firms in order to start a career as a sub-broker. They are as under:

Educational Qualification: As per the RBI regulations, you need to have completed and passed your 10+2 (XII Standard) in order to apply for a job as a sub-broker. However, some brokerage firms require you to have at least completed your graduation degree (in any stream) to apply for a job as a sub-broker.

Computer knowledge: Since most, if not all share market transactions are completed online, you need to have basic, working knowledge about how to use a computer. You will receive the training for conducting transactions once you get the job, but you should know how to use the Microsoft Office package – specifically word and Excel to be eligible for a job as a sub-broker.

Adequate knowledge about the financial markets: One of the most basic prerequisites to become a sub-broker is that you should have adequate knowledge about the financial markets. This can be either through your previous work experience or you should understand and be able to manage simple financial transactions like online transfers, for instance.

You should know how the stock market works: As part of your job interview, you may be asked about the latest news related to economics and political polices as well as the functioning of the stock market. You should have this basic information.

Great communication and management skills: As a sub broker, you would be dealing with a wide range of investors. In this highly competitive business, you should have great communication and management skills. You should be able to explain to customers the nuances of investments and manage their investments. You should also be a good listener and understand your client’s financial goals and expectations.

When you become a sub-broker, you earn a commission for every transaction you conduct on behalf of your client. This is an incentive you earn over and above your salary. Also, there is incredible amount of risk as well as job satisfaction associated with this job. So if you find the share market fascination, a career as a sub-broker can prove to be incredibly rewarding and satisfying. Generally, investment firms are always looking for sub-brokers so you can easily apply for a job in the field.