How To Become A Stock Broker In India

How To Become A Stock Broker In India | Share Market Broker 2023

How To Become A Stock Broker In India

Hi There, We cannot Buy or Sell Shares Directly on Stock Exchange. For that first, you have to open a Trading and Demat account with a stockbroker and then you can Buy and sell Share through Trading account.

In exchange for providing you with trading facilities, stock brokers charge you some fees, which are called brokerage charges, along with some other charges.

You have asked this question to many people, how to be a Stock broker ? So today we will talk about How To Become A Stock Broker In India and some things related to it?

Stock broker

How To Become A Stock Broker 

To become a stockbroker in India, you need to follow these steps:

Meet the eligibility criteria: You must be at least 21 years old, have a bachelor’s degree from a recognized university, and pass the National Institute of Securities Markets (NISM) certification exam.

Gain work experience: To become a stockbroker, you need to have work experience in a related field. You can work as a trainee or an intern with a stockbroker or a financial firm to gain experience.

Obtain the necessary licenses: You will need to obtain various licenses from the Securities and Exchange Board of India (SEBI), including the SEBI registration certificate, the NSE or BSE membership, and the NISM certification.

Register with a stock exchange: To become a stockbroker, you need to register with a stock exchange like the National Stock Exchange (NSE) or the Bombay Stock Exchange (BSE).

Join a brokerage firm: You can either start your own brokerage firm or join an existing one. Joining an existing brokerage firm is easier as it provides you with an existing infrastructure, clients, and regulatory support.

Continuously upgrade your knowledge and skills: Stockbroking is a dynamic field, and you need to keep yourself updated with the latest trends, regulations, and technologies. You can attend seminars, workshops, and online courses to keep yourself updated.

Build a network: To succeed as a stockbroker, you need to build a strong network of clients and other professionals in the field. Attend networking events and build relationships with potential clients and colleagues.

Becoming a stockbroker in India requires hard work, dedication, and continuous learning. But with the right education, training, and experience, you can build a successful career as a stockbroker.

Now Discuss These Steps in details

SEBI Registration

To become a stock broker, first, you have to register with SEBI.

SEBI checks everything when you apply for registration with SEBI. Such as those who have applied for registration of stock broker, whether they have office or not and whether they have necessary equipment, facilities and manpower to run the business of stock broking.

After completing the registration process with SEBI, you get a Certificate of Registration from SEBI.

Membership Of NSE And BSE

Then you have to go to the stock exchange s. Like membership has to be taken on NSE and BSE.

To take membership of the stock exchange, you have to pay their membership fees and fill the security deposit.

 Eligibility Criteria

There is an eligibility criteria to become a member of the stock exchange. As you must be at least 21 years old. How should you have at least 2 years of experience working with a stockbroker? Also your network is also seen.

 Registration Of Depository

Apart from these, you have to do other registrations like taking membership of depository.

The deposits that we buy from stock for delivery are stored in electronic form by the depository, then the stockbroker has to take membership of the depository by paying the depository’s membership fee and security deposit.


So it takes a lot of registration, paper work and money to become a stockbroker. The stock broker has to maintain the details and ledger of the customers. Also, there are many compliances. The stock broker also has to appoint an officer who monitors the activities related to the complaint. Stockbrokers also have to develop good training, software and mobile apps to attract customers. So all these things cost a lot of money so to become a stockbroker you must have at least 2 To 4 Crore Rupees.

If you do not have that much capital or you do not want to invest that much capital, then you have another option and that is to become a sub-broker of a stockbroker.

How To Become A Sub Broker


Everyone works on behalf of their stock broker by crying. To become a sub-broker, paper work is less and money is also less.

In 2009 SEBI brought the concept of Authorized Persons that is Baby. To become an authorized person of a stock broker, you only need to register with the stock exchange, you do not need to register with SEBI.

The functioning of Authorized Person and Sub-broker is almost same. Simply authorized person does not require Sevai registration.

You do not need to register yourself with the stock exchange to become an authorized person. You are becoming the AP of the stock broker, the same registration processor will get you done. To become an Authorized Person,you must pass  12th standard.

To become an authorized person of a broker, it takes basic documents 12 mark sheets and 2k to ₹ 3000 fees.

On becoming an authorized person of a stockbroker, you will open your winning demat accounts to that stockbroker, for all those accounts that broker shares some brokerage charges with you.

If a stockbroker is giving 20% brokerage to someone on opening a demat account through an authorized person, then all demat accounts will be opened through that authorized person. That Authorized Person will get 20% of the brokerage generated by him.

Some Companies Share Brokerage In 70:30 Ratio Ex. If Brokerage is generated of 1000rs So Sub Broker Get 700rs And Company get 300rs


If you have any question related to How To Become A Stock Broker In India, sub-broker, or authorized person, then you can ask us your questions In Comment.

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