Roles and Functions of an Authorised Person

If you want to invest in the capital market, you might have to invest through an authorised person, who is a professional to help you navigate your ways through the equity market. Authorised persons are the people who act as the contact point between the investors and the stockbrokers to facilitate the entire investment process. They match your investment requirements with available best deals to help you maximise your profit.

Authorised persons are critical players in the capital market, and they have a couple of important roles to play. In previous blogs, we have discussed differences between authorised person vs remisier and authorised person vs franchise to understand the characteristics of the different players in the market. In this article, we will look into the role of authorised persons in stock exchange in detail.

Who are authorised persons?

Authorised persons engage under stockbrokers to extend investment facilities to investors. Functions of authorised persons include buying, selling, and dealing with securities and assisting stockbrokers in increasing their business volume. They build the business book of the stockbroker by bringing new investors and helping the existing clients to reinvest. Their role also includes assisting investors with the investment by physically carrying out the transactions, guiding clients with investment advice, and extending after-sales services to them.

Authorised persons, however, are not directly registered with the exchange. Hence, they work under stockbroking houses, creating an advanced business network for them.

Sub-broking is a rewarding profession, which let you act as an entrepreneur. With dedication and hard work, you can unleash immense income potential for yourself. If you are interested in becoming an authorised person, find a complete guide to enrolling yourself.

Authorised persons must register themselves under SEBI. There is also a contract drawn between the stockbroker and the authorised person stating rules, regulations, right, and economic terms of both parties.

Once one becomes a registered authorised person, he must learn about the role of an authorised person in detail.

Role of an authorised person

Authorised persons are required to perform multiple roles in different frontiers. It can be classified under authorised person roles in the stock exchange, with a stockbroker, and with investors.

With the stock exchange

Authorised persons are not direct members of the stock exchange, so they do not come under the direct purview of the stock exchange. But an authorised person fulfils certain functions towards it.

An authorised person obtains his franchise from a stockbroker. After receiving the franchise, the primary role of an authorised person involves offering useful stock exchange tips to clients and assist them in making better investment decisions. So, the primary function of an authorised person concerning stock exchange is to maximise deals in his area.

With stockbroker

Authorised persons work under the brand of stockbrokers and need to perform a list of duties towards the broking house, which appoints him. Functions of authorised persons towards stockbroker include,

Business development: The primary role of an authorised person under stockbroker’s banner is to help them maximise deals in his area. He is responsible for increasing business volume by sourcing a large number of investors who are interested in investing in securities and stocks.

Maintain quality of deals: Authorised persons are the gatekeepers, whose primary role is to prevent investors from submitting wrong documents to the stockbroker and upheld the integrity of the capital market.

Maintain transparency in deals:  The authorised person works closely with the stockbroker in maintaining and indexing all documents related to every transaction that passes his table. They work in the client’s interest in dividends, bonus rights, shares, and other assets. They must also help the stockbroker in replacing documents marked as bad documents.

Assist stockbroker in sales: They must update stockbrokers about all the transactions done by their clients and issue sales notes to them on behalf of the broking house.

With client

Authorised persons are pivotal in helping traders maximise profit from their investment. A lot depends on the authorised person’s ability to identify good deals for clients and encouraging them to invest more. This way, they serve the dual purpose of helping the broking house expand business and clients to get a sweet return on their investment.

Facilitates investment: The primary role of the authorised person is to assist clients in making informed investment choices. They extend every possible help to assist clients to invest in securities effectively and earn the best return on their investment.

Offering investment suggestions: A authorised person will also help his clients by forwarding tips and market news on best deals to make their investment process easy. They understand the client’s needs and financial goals and accordingly guide them with the best investment opportunities.

They receive marketing guidance and news through training and seminars as a part of the broking house and extend that information to clients. Apart from that, they maintain relationships with clients, update them on deals and offers through regular newsletters and emailers, and more.

Assist them with investment: They help clients complete the final leg of investment. They offer their expert knowledge to simplify stock broking process for their clients and assist them in making confident stock choices.


Overall, authorised persons are essential cogs in the wheel, and without them, the capital market cannot function optimally. If you want to start as an authorised person, Angel One can help you by providing with the right foundation through guidance, training, and its extended authorised person network.