What are the Eligibility Criteria to Become a Sub Broker?

The Indian stock market has been performing well for the past many years, and its growth is inexplicable. This brings multiple opportunities not only to the investors and traders but also to the investment and trading service providers like brokers and sub-brokers.

If you want to become a sub broker and earn from this growing stock market in India, then this is the best time to join. This article will cover the details regarding the work profile of sub-brokers, eligibility, how to become a sub-broker, and all other details.

Who is a Sub Broker?

As per NSE, sub-brokers are not trading members of the stock exchanges but act on trading members’ behalf as an agent, or they assist traders/investors to trade and invest via such trading members.

Here trading members are the brokerage houses that offer sub-brokership opportunities.

People willing to become sub-brokers need to enter into a contract with these trading members regarding their rights and responsibilities as sub-brokers/ agents of the trading members. Sub brokers also need to register with SEBI to get the authorization to work as a sub-brokerage entity. If you’re considering how to become a sub broker in India, let’s first understand who is eligible to do so and what those requirements are.

What are the Eligibility Criteria to Become a Sub-broker?

The sub broker eligibility as laid down by most of the brokerage houses and SEBI are:

  • To become a sub broker, you must have 10+2 qualifications at least
  • You must be 21 years of age or above
  • If you are applying for a sub-brokership, then you cannot be a trading member of the stock exchanges
  • You cannot be a sub-broker of another trading member/ brokerage houses
  • If you are a shareholder or associate of a sub-broker (registered), you cannot become the same as others
  • You cannot be a defaulter in the stock trade
  • You have to be registered with SEBI
  • Also, you need to clear the NISM Dealer module to become a sub-broker

How to Become a Sub-broker?

The process of becoming sub-broker includes:

  • Firstly, you need to choose the stock broking firm you want to join as a sub-broker. You can shortlist the top brokerage houses and see which is most suitable for you.
  • Once you know which broker to join, apply for the sub-brokership partner model.
  • You have to submit all the documents like proof of address such as electricity bill or other utility bills or driving license, passport, and other address proof (any one). You will also have to submit the proof of experience, education certificates, SEBI registration, and others as required.
  • You need to make the payment of the security deposit or other fees as required by the brokerage house to provide sub-brokership
  • The brokerage house will verify all the documents, and then if everything is found valid, they will approve the application.
  • If you are already registered with SEBI as a sub-broker, then fine otherwise, now you have to register with SEBI by paying the required fee for registration.
  • Once all the documentation is verified, and you get the SEBI registration certificate, you can join as a sub-broker.

Benefits of Becoming a Sub-broker

If you are wondering how becoming a sub broker can help you professionally and how you can from it, then here are some benefits of becoming a sub-broker:

  • With a reasonable initial investment, you get an opportunity to earn unlimited income. Usually, the initial investment to become a sub-broker is around 2 lakhs to 3 lakhs, and the revenue shared with sub-brokers is on an average of 40% to 60%. So, if you can bring in clients to the brokerage house and generate revenue for them, you can earn enormous returns on your initial investment.
  • Then comes the benefit of working independently. As a sub-broker, you do not work as an employee but as a business partner of the brokerage house and earn a commission. So, you can work as you want, all you need to do is generate revenue.
  • As a sub-broker, you can earn great knowledge regarding the stock market, which can also help you invest and earn from the market in the long run.


So, if you are thinking of building your career in the stock market, then becoming a sub-broker can help you. With the experience of a sub-broker, you may someday start your brokerage firm as well.


Navigating the intricate maze of news with precision, Jason strikes with clarity and depth. On, he distills the essence of current events, offering readers a sleek, informed perspective.

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