A sub-broker is a person who works indirectly as a trading member in the stock exchange. Yet, they worked as an agent. They work for guiding investors about the security concerns and risks from end to end trading members.
A Sub broker must be SEBI Authorised and the stockbroker is responsible for all his acts. And here you must keep in mind an unauthorized broker has no right to assist you and deal with security concerns. SEBI said we are not working with the brokers who are not certified.
SEBI says it is always vital for a trading member to make an agreement with a certified sub-broker about handling all duties and concerns of security exchanges.
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Let us study all the duties of the sub-broker!
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Reasons why Sub broker is essential in the stock market
Well, there are multiple reasons to have sub-broker with trading members especially when people deal directly with brokers. And there are major responsibilities which have to be done perfectly like the signing of the agreement, cracking deals and many more.
To ensure everything is correct, hiring a sub-broker can help you to check clauses, rules, duties, amount, and everyone. These are norms that need to check by both clients the broker so it doesn’t make any confusion to anyone.
Moreover, the sub-broker can recheck the papers and decide to add or delete some clauses. Also, he needs to ensure those points do not create confusion to the clients and it also should not violate the terms and conditions of SEBI. The ultimate decision of having a sub-broker can help trading members to make their decision wisely and earn great profits.
Some of the major duties of sub-brokers with Stock Exchange, Stock Members, and Trading Clients are:
Duties of Sub-Brokers in Stock Exchange
Sub-broker is a franchisee house that gets a stock-broking franchise from the parent company. His major duties for stock exchange are:
- Sub broker is responsible for providing the right information to the client related to stock.
- He regularly updating clients about various updates and changes that occur in the stock exchange.
- Sub-broker needs to maintain a good relationship with the clients and to guide them properly.
Duties of Sub-Broker with Stock Member
Sub-broker is a person appointed by the stockbroker, therefore his major duties with the Stock member are:
- Sub Broker is the one who works as an agent with a Trading member and helps him in getting a maximum number of potential clients and maximizing the number of deals and hence earnings.
- Sub broker carefully checks all the documents and prevents the chance of delivering the wrong documents.
- He keeps an eye on all the transaction and documentation process, record all the transactions. He helps to protect the interest of clients in terms of dividends, bonus rights, shares, etc.
- He needs to understand the client’s issues regarding purchase and transactions
Duties of Sub-Broker with Trading Clients
All the stock exchange business revolves around trading Clients. Sub-brokers are appointed by the stockbroker their whole business growth depends on the number of clients to whom they assist and influence successfully.
Major Duties of sub-brokers with the trading clients are
- Sub-brokers provides complete support to Clients, He gives the best investment suggestions to Client to know which deal works best for them and help them in earning maximum profit. This helps in understanding how to make the best use of their securities.
- Sub-broker’s main role is to provide the best marketing suggestions to its clients. By doing this He keeps them updated with all the latest marketing strategies by attending various events and seminars.
- Sub broker is responsible for providing the right information to the client related to stock. Keep updating clients about various updates and changes that occur in the stock exchange business.
- The other important role of a sub-broker can do to offer the best marketing submissions to the clients so they can invest. Thus it is essential to stay updated with upcoming financial trends. This helps them to grab and deliver the right tips to the clients that further help them to make the right decision in the stock exchange.
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