Sub Broker/Authorised Person/Remiser-Advice Needed.

roger

New Member
#1
Hello Traderji Members,

I require your expert advice for the following:

I have considerable number of leads who are looking to get started in trading. My understanding is one can act as a sub broker and get a percentage of the brokerage generated from the main broker.

I apologize if the below look like dumb question, but kindly humor me :)

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Question 1: If i become the sub broker and if the client enrolled under me defaults or runs into loss and isn't willing to pay. Who will bear the loss, me or the main broker?
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Though i have good leads, i don't want to take the responsibility of
a. executing the orders of the clients
b.sending contract notes
c. Picking up the phone for other queries
d. Taking any loss due to clients trading mistakes.

I basically want to avoid any financial liabilities and the leg work.

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Question 2: If i approach the main brokers and tell them very clearly that i can only get them leads, but

i. Rest of the work has to be managed by the main broker
ii. Any financial liability is only their responsibility.
iii. I will not get involved in any order execution on client's behalf nor will i be part of any day to day operations or support.

Then negotiate a fair percentage of the brokerage generated.

a. Is such an arrangement possible?

b.Out of sub broker/authorized person/remiser which model comes close to my needs?

c. Are there any models other than sub broker/authorized person/remiser?



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Question 3:
a. If the existing model of sub broker/authorized person/remiser doesn't fit, is it possible to enter into a custom agreement with the broker
with respect to my needs?

b. Kindly advise if a custom made agreement other than sub broker/authorized person/remiser violates any sebi or exchange norms?

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Question 4:

How can i keep track of the brokerage that is being generated through my leads?

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Of course, i intend to do full justice to the leads i bring, so feel free to suggest me any good brokers that i can have tie up & any experiences that you would like to share. :)

I really appreciate for reading this far...

Thank You
 

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