Ways To Grow Business as Authorised Person

Who is an Authorised Person?

An Authorised Person or sub-broker is an intermediary between clients and stock brokerage firms. While they are not part of the stock exchanges, they facilitate the buying and selling securities. They support clients in making investment decisions and executing transactions under the license of a registered broker.

Typically, a sub-broker partners with a larger brokerage firm, utilising its infrastructure and resources. They build a client base and manage securities transactions for their clients. Sub-brokers/Authorised Persons earn commissions or fees from these transactions carried out by their clientele.

Additionally, sub-brokers must adhere to regulations set by bodies like SEBI and the stockbroking firm they are associated with, ensuring compliance with market regulations and ethical standards. Keep reading to learn the ways to grow business as an Authorised Person.

Understanding the Role of an Authorised Person

Individual investors cannot make direct investments in the Indian stock market. There are different stockbrokers through whom they need to operate. These stockbrokers function in a very active network of agents providing investment solutions to investors. These agents are called the Authorised Persons.

Major Roles of an Authorised Person

The Securities and Exchange Board of India (SEBI) designates an “Authorised Person” as any individual or group that SEBI-registered trading members or stockbrokers allow to represent them in client dealing and the provision of services pertaining to investments and trading.
Authorised Persons are a key part of the Indian capital market. Having an agency business is a profitable choice for those who want to become a business owner. The roles they play are:

Business Developments

An Authorised Person working for a stockbroker is mainly responsible for assisting them in maximising deals within their area. By finding a sizable number of investors interested in buying stocks and securities, he is in charge of boosting business volume.

Upkeep the Quality of Deals

Another important responsibility of an Authorised Person is to maintain the integrity of the capital market by stopping investors from providing the stockbroker with incorrect documentation.

Maintain Transparency

Alongside the stockbroker, the Authorised Person maintains and indexes all the documentation pertaining to each transaction that flows through his table. They act in the client’s best interests regarding dividends, bonus rights, shares, and other assets. They also need to assist in exchanging documents flagged as faulty.

Supports Investment

The Authorised Person helps clients make wise investment decisions. They offer their clients all the assistance they can to help them make the highest returns on their investments and invest in securities.

7 Ways To Grow Business as an Authorised Person

The following sections highlight seven tips to grow business authorized person.

Build a Strong Client Base

Any successful company’s customer base is its foundation. The acquisition and retention of clients should be your top priorities as an Authorised Person. Your ability to create business value will determine how much money you make. Some basic strategies you can follow are:

• Reach potential clients using digital marketing techniques, including email marketing, social media, and search engine optimisation (SEO). Ensure your marketing initiatives emphasise the advantages of using your services as an investment. Create compelling content that catches the eye.
• Organise frequent seminars and workshops to inform prospective investors about investment methods, changes in rules, the stock market, and the benefits of investing through a licensed individual. These experiences can support credibility development and trust-building. It also facilitates networking.
• Create an organic database of the people you know who have expressed interest in stock investing, including friends, family, neighbours, coworkers, and relatives.
• By providing incentives like lowered brokerage fees or other advantages, you can get your current clients to recommend new ones. Recommendations from friends and family can greatly increase your clientele.
• Make cold calls.

Selecting a Good Stockbroker

As an Authorised Person, you will work under a stockbroker; therefore, finding the right one is critical. It takes research and understanding to find a reliable stockbroker. You can begin the process by contrasting each company’s business model. Stockbrokers differ in what they require in terms of initial security deposits and commission payouts, so be clear about the value you can provide and what you expect to earn.

Leveraging Technology

Technology is essential for expanding your company’s reach and improving its efficiency. Adopt the newest tech innovations to maintain your competitive edge. These include:

Online Trading Platforms

Give your clients access to reliable online trading platforms with an intuitive user interface, real-time data, and analytics. As a result, they will be able to make wise investing decisions.

Mobile Applications

Provide a mobile application that enables users to track their investments, trade while on the go, and get market information. Mobile accessibility has the potential to greatly increase customer engagement and satisfaction.

Customer Relationship Management (CRM) Systems

Use a CRM system to keep tabs on customer preferences, handle client interactions, and offer tailored services. You may establish enduring ties with your clients with the aid of a CRM system.

The Right Office Space

You can operate your business out of a designated commercial space or from home. It is not always necessary to make a sizeable investment in the beginning. A standard office will suffice. Make sure you choose the spot wisely. This is because the stockbroker will equip you with banners, displays, and other marketing supplies when you sign up. Make sure the neighbourhood where you establish your office has a high concentration of the individuals who make up your target market. Otherwise, marketing efforts will be wasted.

Constant Upgradation

There can be changes and fluctuations in the financial market. To maintain and expand your company, remain flexible and adjust to changing market conditions.

Market Research

Keep an eye out for new trends, profitable ventures, and possible hazards by conducting frequent market research. Update your offers and plans with this knowledge.

Risk Management

To protect your clients’ capital and keep their faith, implement robust risk management procedures. Inform your clients about risk concerns and motivate them to choose wisely.

Innovative Solutions

Remain open to using modern technologies and solutions that can improve your offerings and provide you with a competitive advantage. Always look for methods to get better and change.

Courses and Workshops

You can enrol in SEBI’s investor education programmes. In addition, study research reports, follow stock market news, and participate in the broking firm’s agent improvement and training workshops. Investors want an experienced agent who can provide them with sound guidance.

Strategic Partnerships

Creating beneficial partnerships will enable you to reach a wider audience and provide your clients with more services. Work with top brokerage firms to utilise their assets, know-how, and research capacities. This could improve the level of services you provide to your customers.

Collaborating with mutual fund distributors and financial advisors is essential to provide your clients with an expanded array of investment choices and advisory services. Partner with fintech firms and tech suppliers to incorporate sophisticated trading instruments, data, and safety measures into your platform.

Enhancing Client Experience

Retention of customers and business expansion depends on a satisfying customer experience. Concentrate on providing outstanding service at every touchpoint.

Transparency and Communication

Keep your clients informed about fees, transactions, and changes in the market in a transparent manner. Give them regular updates on the performance of their portfolio and respond to their questions immediately.

Personalised Services

Recognise each client’s requirements and provide tailored investment options. Consider their investing horizon, risk tolerance, and financial objectives when making suggestions.

Customer Service

Offer thorough customer service over various channels, including chat, email, and phone. Ensure the people in your support team are informed and quick to respond to client questions.

Conclusion

To grow your business as an Authorised Person, a strategic and multi-faceted approach is required. This combined client acquisition, constant upgradation, having a proper office space, using technology, and customer service. Two other essential factors are finding a reliable stockbroker and building profitable partnerships. Besides, being agile and responsive to market fluctuations will lead to long-term success.