Authorised Person Exam

5 mins read
by Angel One

If you are looking to work in the finance sector, becoming an Authorised Person (formerly known as a Sub Broker) is a good choice.

Agents are key market players. If an individual investor wants to invest in the stock market, he has to do it with the help of an agent.

Roles And Responsibilities Of An Authorised Person

The primary role of an Authorised Person is to guide his clients to invest in the financial market on behalf of a stockbroker. Stockbrokers hire Authorised Persons or agents to sell the various investment tools to investors – equities, currencies, commodities. An Authorised Person buys and sells securities on behalf of his client. Therefore, they should always stay at the top of market news and develop a good understanding of the financial market to identify investment opportunities.

Skill Sets You Need

An authorised person’s main function is to offer individuals the right suggestions about the selling and buying of stocks to their clients so that they can make the most of their market investments. Hence, having the correct and updated understanding of the inner workings of the stock market  and financial knowledge is vital. It is also important to consider the effect of the world’s economy and other aspects like legislation on the stock market’s performance.

A potential authorised person should realise the direction in which a particular stock or market will head due to the decisions that are made by any company or government. The better you are, the more likely you’ll retain clients for longer. In the role of an Authorised Person, you need to think and act like an entrepreneur – the profile of a stockbroking agent demands quick thinking abilities, excellent communication, client management skills and overall multitasking. As an Authorised Person, you should be able to explain everything related to the stock market to your client. Moreover, you will need basic computer skills to maintain client details and financial records accurately.

With your knowledge, you should convince the client to invest, and hence, can’t ignore the importance of gaining the right coaching.

What are the specific exams required 

In order to be able to practise as an authorised person in India, an individual will need to clear the authorised person exam designed to test your knowledge in the financial market. These exams are conducted online by NSE and BSE. NSE Certificate In The Financial Market is the name of the certificate offered by the National Stock Exchange. The program is divided into three modules to cover broad aspects of the financial market – basics, intermediate, and advance. To apply for Authorised Person certification, you will have to enrol yourself for the respective segments.

– NSE Series XI: Equity Sales Certification Exam

– NSE Series VIII: Equity Derivatives Certification Examination

NSE offers different courses to help you prepare for their exam.  These courses are attuned to the latest market developments and policy updates. Even if you are experienced in the financial market, these courses will help you update your knowledge as per the latest standards.

Like NSE, Bombay Stock Exchange also conduct courses and certification exams for aspiring agents.

How to prepare for authorised person examination

NISM-Series-XI exam Preparation:

This type of team is voluntary and also referred to as the Equity Sales Certification Examination. To prepare for this examination, one needs to study the Indian equity market thoroughly including its returns, risks, and any taxes that are related to it. One should also have clarity regarding any concepts such as risk management, settlement, and clearing, especially during the operational processes of the equity market. If one is able to clear this exam, it will showcase that you possess a powerful understanding of the operations of the Indian equity market. For those who currently do not have a good grasp of this market, it’s vital to study this thoroughly to obtain this certificate.

NISM-Series-VIII exam Preparation:

This is also known as the Equity Derivatives Certification Examination. This type of exam gauges an individual’s knowledge when it comes to being the approved user for a trading member as well as a sales personnel in the Indian equity derivative segment. To prepare for this exam, you will be mandated to study the different derivative products that have been offered by the derivative markets. You should also prepare to know about risks and regulations associated with them, in addition to the mechanism for the exchange of clearing and settlement. It is also necessary for individuals to prepare about the regulations and rules that enable the Indian securities market to operate. Finally, another key preparation is regarding the different strategies that you can create using futures and options on the stock indices.

Why get certification?

These certificates will add weight to your resume and will make you a desirable candidate to the employer. Knowledge in the areas of accounting, finance, or business administration will be a plus for any industry. These certifications will undoubtedly help you advance in your career and in your dream to achieve financial freedom.