What is an Authorised Partner Business Model?

How the Model Works ?

A stockbroker appoints authorised partners in different cities or regions. These partners act as the local point of contact for investors. Let’s say, someone in a smaller town wants to start investing but does not have complete know-how of the account opening process and or investing.

In such cases, a local authorised partner can guide the investor on the process of Know Your Customer (KYC) required for account opening and explain trading platforms, its features and functionality. Many times, ongoing support is also required. While, the authorised partner provides all of this, on the other side, the stockbroker handles trading execution, compliance and account security.

This model benefits both brokers and investors. Brokers can grow their customer base without opening expensive branches everywhere. Investors gain access to trusted platforms and receive personalised help when needed. One of the major brokerages using this model is Upstox, which has a network of authorised partners across India to reach new investors efficiently.

What is a Referral Link for Authorised Partners?

A referral link is a unique link provided to authorised partners by the broker firm. This link allows the authorised partner to refer new clients directly to the broker’s platform. When someone signs up using the referral link, the authorised partner gets credit or commission for the referral. Think of it as a referral code you use in several online purchases. Referral links make it easier for partners to track their clients, earn rewards and grow their business without handling funds or managing accounts directly.

SEBI Guidelines for Authorised Partners

The SEBI regulates the authorised partner model to ensure investor protection. According to SEBI, an authorised partner is a person or entity appointed by a SEBI‑registered broker to act as their agent in a particular segment of the market. The broker is fully responsible for the authorised partner’s actions.

SEBI Guidelines ensures that

Authorised partners cannot accept or hold client money or securities.

All transactions must go through the broker’s accounts.

Partners may earn commissions from the broker but cannot charge clients directly.

Ethical conduct, confidentiality, and avoiding conflicts of interest are mandatory.

An authorised partner should usually work with only one broker per segment to ensure transparency.

These rules ensure that investors receive reliable support and the market remains safe and transparent.

Benefits for Investors

Investors who work with authorised partners benefit from both personal guidance and the security of trading through a SEBI‑registered broker. They can get help with account opening and activation, learn how to use trading platforms and receive basic support from qualified person. This makes investing in the stock market accessible and less intimidating, especially for beginners.