Roles And Functions Of Sub brokers

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With India’s expanding economic trajectory, equity has established itself as a popular investment option for Indian investors. It is simple to understand why stocks are so well-liked given that investments in the stock market have recently provided better returns. Of course, previous results do not guarantee future results, and equity investments are subject to market risk. Market volatility hasn’t stopped investors, though. However direct stock and share investments cannot be made by individuals or institutions. That is the responsibility of sub-brokers or broking companies. A sub-broker is a specialist who can assist you in navigating the stock market which may be necessary if you wish to put money into the capital market. The functions of Sub-broker is to serve as the point of contact for stockbrokers and investors during the course of an investment. To assist you in optimising your earnings, they match your investing needs with the greatest bargains that are currently offered.

Duties of a Sub-Broker

Sub-brokers work with stockbrokers to provide investors with investment services. The role of sub-brokers is to help stockbrokers grow their clientele by doing tasks such as purchasing, selling, and dealing with securities. By attracting new investors and encouraging current clients to reinvest, they expand the stockbroker’s business book. In addition to executing the transactions for investors, the Functions of Sub-Broker also include advising customers on investments and providing them with after-sales services.

Let’s look at the different roles of a sub-broker in detail- 

Client Acquisition:

Sub-brokers actively seek out potential clients for the main stockbroker or trading member. They can accomplish this through a variety of techniques, including networking, referrals, and advertising. They may hold seminars, workshops, or webinars to teach potential customers about stock market investing and the benefits of employing their services.

Client Servicing:

Sub-brokers build strong relationships with their clients by providing personalized assistance and addressing their individual needs. They act as a point of contact for clients, helping them navigate the complexities of trading and investing.

Order Placement:

Sub-brokers take client orders and ensure they are accurately transmitted to the main broker’s trading platform or the stock exchange. They monitor the execution of orders and provide clients with updates on the status of their trades.

Market Research and Analysis:

Sub-brokers conduct research on various financial instruments, industries, and market trends. They may offer investment recommendations based on their analysis, helping clients make informed decisions.

Risk Assessment:

Sub-brokers assess their clients’ risk tolerance by discussing their financial goals, investment horizon, and previous investment experiences. All this helps them recommend appropriate investment strategies, such as stocks or mutual funds.

Compliance and Documentation:

Sub-brokers ensure that all client accounts and transactions comply with regulatory guidelines and the policies of the main brokerage firm. They also help clients complete necessary documentation, including KYC  and Anti-Money Laundering requirements.

Knowledge building:

Sub-brokers may organize training sessions, and webinars, or provide educational materials to enhance their clients’ knowledge of financial markets. They may explain technical concepts, trading strategies, and risk management techniques to help clients become more informed investors.

Account Maintenance:

Sub-brokers assist clients in maintaining their trading and demat accounts by updating personal information, contact details, and preferences. They ensure that all account-related paperwork is accurate and up-to-date.


Sub-brokers provide regular reports to clients, including portfolio performance reports, transaction history, and account statements. These reports help clients track the growth of their investments and understand their trading activity.

Customer Support:

Sub-brokers offer responsive customer support, promptly addressing client inquiries, concerns, and issues. They aim to resolve any problems clients may encounter in a timely and efficient manner.

Margin and Risk Management:

Sub-brokers help clients manage their trading positions and ensure they have sufficient margin or funds in their accounts to meet trading requirements. They may suggest risk management strategies, such as setting stop-loss orders or diversifying portfolios.

Marketing and Promotion:

Sub-brokers actively participate in marketing efforts to promote the main broker’s services. They engage in marketing campaigns, both online and offline, to attract a wider client base and increase brand visibility.

Sub-brokers act as mediators between clients and the main brokerage business, ensuring a smooth and efficient trading experience while providing individual investors with assistance and support. Their effectiveness in these roles can greatly impact client satisfaction and the growth of the brokerage business they represent.

Requirements to be a sub-broker in India

  • Register with SEBI through a registered stockbroker or trading member.
  • Maintain required infrastructure and communication facilities.
  • Meet financial soundness and net worth requirements.
  • Undergo training and certification, such as NISM exams.
  • Compliance with SEBI and stock exchange regulations.
  • Background checks for a clean record.
  • There is a potential need for prior financial industry experience.
  • Operate under an agreement with a registered stockbroker.
  • Adherence to Know Your Customer (KYC) and Anti-Money Laundering (AML) norms.
  • Check and adhere to the latest SEBI and stock exchange requirements.


Sub-brokers play an indispensable role in the world of investments, acting as a bridge between investors and stockbrokers. Their significance lies in their ability to provide personalised assistance, in-depth market insights, and a seamless trading experience for investors. By actively engaging with clients, offering valuable research and analysis, and ensuring compliance with regulatory standards, sub-brokers enhance investor confidence and facilitate informed decision-making.

For stockbrokers, sub-brokers serve as valuable extensions, expanding their reach and client base through effective client acquisition and retention strategies. In essence, the functions of Sub-Broker is to contribute to the growth and success of both investors and stockbrokers alike, forging enduring relationships that are built on trust, expertise, and mutual prosperity in the dynamic world of financial markets.

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