If you’re planning to enter the Indian stock market as a sub broker, understanding the SEBI registration fees and regulatory process is critical. As of 2025, the Securities and Exchange Board of India (SEBI) has made several updates that aspiring sub-brokers must comply with. This guide breaks down the sub broker registration fees for SEBI, eligibility, documentation, timelines, and compliance requirements to help you get started.
Who Is a Sub Broker?
A sub broker is an intermediary who works under a SEBI-registered stockbroker, assisting clients in buying and selling securities. Unlike full-service or discount brokers, sub brokers do not hold direct access to stock exchanges but operate under a principal broker’s infrastructure. Sub brokers play a key role in extending brokerage services to untapped markets, especially in tier 2 and tier 3 cities.
Types of Brokers in India
Before diving into registration, it’s essential to understand the distinction:
-
Full-Service Brokers: Offer research, advisory, portfolio management, and trading platforms (e.g., Angel One, Motilal Oswal).
-
Discount Brokers: Focus on low-cost trading with minimal services (e.g., Zerodha, Upstox).
-
Sub Brokers: Operate under a registered broker to offer similar services at a regional level.
SEBI’s Regulatory Framework for Sub Brokers
In 2018, SEBI mandated that all sub brokers must register as Authorized Persons (AP) through stock exchanges like NSE, BSE, or MCX. This transition eliminated the separate sub broker category under SEBI, bringing them directly under exchange supervision. However, the term “sub broker” is still widely used in the industry.
Sub Broker Registration Fees for SEBI in 2025
Here’s the breakdown of the registration costs:
| Component | Fee (INR) |
|---|---|
| Exchange Registration (One-time) | ₹2,000 – ₹5,000 (varies by exchange) |
| SEBI Processing Charges | ₹2,000 (for AP registration) |
| GST (18%) | Applicable on fees |
| Annual Maintenance | ₹1,000 – ₹2,000 (exchange-specific) |
| Infrastructure/Setup Cost | ₹50,000 – ₹1,00,000 (approximate, varies) |
-> Total Initial Cost: ₹60,000 to ₹1,10,000 approx. (including setup, fees, and GST)
Note: There’s no direct sub broker registration fee to SEBI anymore. Instead, registration is routed through the stock exchanges.
Eligibility Criteria
To become a sub broker (Authorized Person), you must meet the following:
-
Indian citizen aged 18 or above
-
Minimum qualification: 10+2 or equivalent
-
Clean financial background (no pending defaults or criminal records)
-
Experience in financial services preferred but not mandatory
-
Basic infrastructure like an office setup, internet, and systems
Documents Required
-
PAN Card and Aadhaar Card
-
Address proof (utility bills, bank statement)
-
Educational certificates
-
Passport-size photos
-
Registration form (exchange-specific)
-
Agreement with the principal broker
-
Cancelled cheque or bank account details
All documents must be self-attested and submitted along with a digital signature.
Registration Process and Timelines
-
Choose a Principal Broker: Partner with a SEBI-registered broker.
-
Sign Agreement: Complete the sub broker agreement as per exchange norms.
-
Apply via Exchange Portal: Upload documents and pay fees.
-
Verification and Approval: Stock exchange processes the application.
-
Authorization Certificate Issued: Within 2–4 weeks post verification.
Compliance and Ongoing Obligations
Once registered, sub brokers must:
-
Submit periodic reports to the exchange
-
Maintain KYC and trade records
-
Comply with anti-money laundering (AML) guidelines
-
Renew annual membership (if applicable)
-
Abide by the broker’s code of conduct and SEBI circulars
Non-compliance can lead to deactivation or blacklisting from exchanges.
Conclusion
While the sub broker registration fees for SEBI have been rationalized under the Authorized Person model, it’s essential to stay updated with exchange-specific costs and documentation. Becoming a sub broker is a cost-effective way to enter India’s growing capital market industry and build a long-term career in financial services.
