Become a Best Sub Broker Online
by Andrew Abraham Business AnalystA sub broker is one who
acts as an intermediary between the broker and the client. He conducts all
stock related transactions for the client just as how the broker would. An
essential difference between the two is that, a sub-broker cannot work
independently but has to work under another broker. However, a broker can work
independently. He also gets a part of the commission or brokerage fees for the
services rendered. He is part of the stock exchange that the broker is also involved
with and he is also regulated by the guidelines of Securities and Exchange Board of India
(SEBI). There might be sub-brokers who are not registered with SEBI. However,
it is in the best interests of the client to deal with a registered one.
Qualifications to Become One
There are certain regulations and qualifications
that need to be fulfilled to become a sub-broker. He should have at least
passed class 12 and not be less than 21 years old. He should have obtained a
certificate of registration from SEBI. He should not have been involved in any
illegal activities, especially in trying to rig financial dealings. Some of the
best stock brokers in India
predict market conditions very wisely and guide their investors to make good
returns.
Roles
and Responsibilities
There are certain roles and responsibilities
when he becomes a sub broker. Just like the broker he can execute the purchase
or sale order which is issued by his client. He is responsible for executing
the commands of his client. Subsequently, he also has to prepare sales or
purchase notes once these orders are executed. On a monthly or quarterly basis
he has to get the payment and brokerage fees for the transactions he has
conducted. In the case that there are any defaulting clients, then it is the
sub-broker’s responsibility to ensure they make their payments. In the case
that the client asks for any investment advice, he can give suggestions and
ideas as per his knowledge. He more or less does all that a broker does but is
in direct control of the broker.
Codes
of Conduct
There are some underlining rules or codes of
conduct that govern a sub-broker. They should deal with clients only if they
are a SEBI registered broker. In the case that they are not, then their license
can be cancelled and they are not authorized to conduct business. There is a
tripartite agreement that is entered with the broker, sub-broker and the
client. This agreement must be signed by all three parties. This will have to contain
all the methods of functioning, areas of functioning, scope, fees, etc. Some of
the best stock brokers have a number of sub-brokers under him because of the
large number of clients. This agreement applies to all such sub-brokers and
clients.
About Author:
Author is a contributor writer and engaged with best stock broker in India. He also would like to share his experience for become a sub broker.
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Created on Dec 31st 1969 18:00. Viewed 0 times.