Hello Frndz

i am CA by profession and working in my own firm with my father who is also CA.We wish to expand our firm so want to enter in this field of sub brokership.Pls help me and tell what are the basic requirements one should have to enter in this field???

I am afraid...becoming a Sub-broker is no longer a very remunerative idea....unless you have the ability to trade & make consistent profits which are way above average....!!!

A good reason for taking up a Sub-Brokership would be if you are active Futures Trader doing a Turnover of more than 5-7 Lots of stock futures everyday... that would give you back some of the brokerage to you....!!!

SG

Hmmmmm, guys, pull out your tax related questions & fire@juhi

So ethan, when are you retiring from the CIA?

Hi

Ideally it will require the following.

-Please be infomed that sub-brokership concept is no longer prevalent. Its better known as Franchisee.

-You will have to approach a Member broker (Member of a stock exchange).
-Your agreement will the stock broker will be based on revenue sharing. Which means you will have to introduce clients based on your own contacts and relationships.
-Brokerage generated by your clients will be shared between you and your broker.

Basic requirements are
-Infrastructure - which means office space, telephone line , computers etc.
-Sign board, pamphlets (for distribution and marketing), banners will be provided by the broker.
-Fee deposit - to the broker. Should be around 1 lacs (interest free and refundable)
-Incase of any bad debts from your clients it will be deducted from this deposit.
-Softwares-Broker will provide you trading softwares.
-NCFM- You need to pass NCFM examinations (cash and derivatives) so that you can have your own ID and login to the trading terminal and executes trades on behalf of your clients.
-Agreement- You and you client and your broker will have to enter into tripartite agreement. for this KYC is required from your clients.
-Upfront marging(10%-15% from your clients and other a/c opening charges. Marging to be used against shares purchased by your clients.
-You also need to register with sebi and your broker will help you in this.

Broadly speaking these are the basic requirements. Its simple. Any further queries are most welcome

And last but not the least avoid speculation and overtrading for your clients.

Wish you all the best