If you’ve been researching how to start a stock market franchise business in India, you’ve probably run into three terms that all seem to mean the same thing — Sub Broker, Authorised Person, and Remisier.
Ask five people what the difference is, and you’ll likely get five different answers.
Here’s the honest truth: this confusion isn’t your fault. SEBI (the Securities and Exchange Board of India) actually changed the rules back in 2018, and the industry hasn’t fully caught up in how it talks about these roles.
Brokers, YouTubers, and even franchise websites still use “Sub Broker” loosely, even though it isn’t technically the correct regulatory term anymore.
In this guide, we’ll break down exactly what each term means, how the roles differ in real, practical terms — registration, earnings, client relationships — and which path makes the most sense depending on your goals. No jargon overload, just a straightforward explanation.
What is a Sub Broker? (The Term You’ll Hear Most Often)
A Sub Broker is essentially a person or entity that works on behalf of a registered stockbroker to bring in clients, help them open trading and demat accounts, and provide day-to-day support — all while the parent broker handles the actual trade execution, back-office operations, and compliance.
Think of it like a franchise outlet. You’re the local face of the business, you build client relationships in your city or locality, and in exchange, you earn a share of the brokerage generated by your clients’ trading activity.
Important: SEBI officially discontinued the “Sub Broker” registration category in 2018. Every existing Sub Broker was required to convert into either an Authorised Person or a Remisier.
So when someone today refers to a “Sub Broker franchise,” they almost always mean an Authorised Person arrangement — the term has simply stuck around out of habit and familiarity, even in marketing material.
What is an Authorised Person (AP)? — The Official Term Today
An Authorised Person (AP) is the current, SEBI-recognised term for what used to be called a Sub Broker. If you’re exploring a sub broker franchise business today, this is the actual registration category you’ll be signing up under.
An Authorised Person is appointed by a stockbroking member (like Sharekhan, Motilal Oswal, or Angel One) to:
- Refer and onboard new clients
- Assist with account opening and documentation
- Support clients with trading platform usage and queries
- Sometimes place orders on behalf of clients, depending on the broker’s policy
Key regulatory points about becoming an Authorised Person:
- You must clear the NISM Series XV (Research Analyst) or the relevant NISM certification required by your broker.
- A formal agreement is signed between you and the stockbroker, filed with the stock exchange.
- Your registration and details are recorded with the exchange (NSE/BSE), unlike the old informal Sub Broker setup.
- Commission (called “brokerage sharing”) typically ranges from 50% to 70%, depending on the broker and business volume.
Essentially, becoming an Authorised Person is what most people mean today when they say they want to “start a sub broker franchise.”
What is a Remisier? — The Lesser-Known Third Option
A Remisier is the other SEBI-approved category that Sub Brokers could convert into, but it’s far less commonly used in India compared to the Authorised Person model. The term actually has French origins and is more prevalent in markets like Singapore and Malaysia.
A Remisier works purely on a referral and relationship-management basis — introducing clients to a broker and earning commission on the trades those clients execute. Unlike an Authorised Person, a Remisier typically:
- Does not handle formal documentation or account-opening processes directly
- Focuses mainly on client acquisition and relationship management
- Often works with a lighter operational setup (no need for a full office infrastructure in many cases)
- Earns a smaller share of brokerage compared to an Authorised Person, since the responsibilities are narrower
In India, very few brokers actively offer the Remisier model today — most large brokerages (Sharekhan, Motilal Oswal, IIFL, Kotak Securities, etc.) structure their franchise business almost entirely around the Authorised Person format.
Sub Broker vs Authorised Person vs Remisier: Side-by-Side Comparison
| Basis of Comparison | Sub Broker (Old Term) | Authorised Person (Current Term) | Remisier |
| Regulatory Status | Discontinued by SEBI in 2018 | Officially recognised by SEBI/Exchanges | Officially recognised by SEBI/Exchanges |
| Registration Authority | Was registered with SEBI directly | Registered with the Stock Exchange (via the broker) | Registered with the Stock Exchange (via the broker) |
| Certification Required | NISM certification (varies) | NISM Series XV (Research Analyst) or broker-specified module | Usually no mandatory certification |
| Client Onboarding Role | Full onboarding & support | Full onboarding, documentation & support | Referral only, limited operational role |
| Typical Commission Range | 40% – 60% (legacy structure) | 50% – 70% of brokerage generated | 20% – 40% of brokerage generated |
| Office/Infrastructure Needs | Moderate | Moderate to high (space, staff, terminal) | Minimal |
| Popularity in India | Term still used informally | Most common model today | Rarely offered by Indian brokers |
| Best Suited For | N/A (legacy term) | Entrepreneurs building a full-fledged franchise | Individuals wanting a low-effort referral income |
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Which One Should You Actually Choose?
If you’re comparing these three options to decide how to enter the stock broking business, here’s the practical takeaway:
Choose the Authorised Person route if you want to build a proper, scalable franchise business — with a physical or hybrid setup, a team, and the ability to actively manage and grow a client base.
This is what almost every major broker (Sharekhan, Motilal Oswal, IIFL, Angel One, Zerodha) offers today under franchise or partner programs.
Consider the Remisier model only if a specific broker offers it in your city and you’re looking for a low-commitment, referral-based income stream without wanting to manage compliance, documentation, or a dedicated office.
Forget “Sub Broker” as a registration category — it’s simply the informal, everyday name people still use for the Authorised Person model. When you sign up with a broker, your actual paperwork will refer to you as an Authorised Person.
Whichever path you choose, your earning potential will depend heavily on the brand you partner with, your local market, and how actively you build client relationships — the same factors that separate a thriving franchise from a stagnant one.
Frequently Asked Questions
Is “Sub Broker” still a valid registration in India?
No. SEBI discontinued the Sub Broker category in 2018. The term is still used colloquially, but the actual registration today is done under the Authorised Person framework.
Do I need NISM certification to become an Authorised Person?
Yes, most brokers require you to clear the relevant NISM certification (commonly NISM Series XV) before onboarding you as an Authorised Person.
Which earns more — an Authorised Person or a Remisier?
Generally, an Authorised Person earns a higher share of brokerage (50–70%) because the role involves more responsibility, including documentation and client servicing. A Remisier’s referral-only role typically earns a smaller share.
Can a Remisier later become an Authorised Person?
Yes, in most cases you can upgrade your registration with the broker’s approval, provided you meet the certification and infrastructure requirements for the Authorised Person category.
Is starting as an Authorised Person the same as buying a franchise?
Broadly, yes — when people search for a “sub broker franchise business,” they are referring to becoming an Authorised Person with a stockbroking company.