What is the Role of an Authorised Partner in India?

After obtaining a certificate from the Securities and Exchange Board of India (SEBI), Authorised Partners acquire a franchise from a mainstream broker, leveraging its brand name and resources to serve clients. They earn a share from the brokerage on every transaction conducted. As of March 2024, the total number of demat accounts surpassed a new high of 15 crore, indicating growing retail investor participation in the stock markets. This trend promises significant growth potential for brokerages and intermediaries like Authorised Partners.

Brokerages engage Authorised Partners primarily to expand their client base, particularly in smaller towns and rural areas. Acting as intermediaries, Authorised Partners facilitate client acquisition through networking, advertising, and seminars to educate investors about the broker’s products and offerings. They play a pivotal role in marketing and promoting the broker, enhancing brand trust, and ensuring transparency to retain clients in a competitive market.

Key functions of Authorised Partners in the Indian stock market ecosystem include:

• Expanding the broker’s client base by acquiring new clients through various outreach strategies
• Marketing and promoting the broker’s brand to foster trust and transparency among clients
• Understanding clients’ financial goals and initiating their investment journeys with basic financial knowledge
• Ensuring smooth execution of buying or selling orders and updating clients on order statuses and necessary reports
• Educating investors on trading strategies, risk management techniques, and regulatory changes through training sessions and educational materials
• Ensuring regulatory compliance by handling necessary paperwork and staying updated on exchange and SEBI regulations
• Providing active customer support to address client concerns promptly and facilitate smooth operations

Conclusion

Authorised Partners play a dual role, serving the interests of both the broker and clients. Their responsibilities encompass facilitating operations, ensuring compliance, and enhancing client engagement to foster successful business growth.