A “Sub-broker” means any person not being a member
of a Stock Exchange who acts on behalf of a Member as an agent or
otherwise for assisting the investors in buying, selling or dealing
in securities through such Member.
All the sub-brokers are required to obtain a Certificate of Registration
from SEBI without which they are not permitted to deal in securities.
SEBI has directed that no broker shall deal with a person who is acting
as a sub-broker unless he is registered with SEBI and it shall be
the responsibility of the member-broker to ensure that his clients
are not acting in the capacity of a sub-broker unless they are registered
with SEBI as a sub-broker.
It is mandatory for Members to execute an agreement with all the sub-brokers.
The agreement specifies the rights and responsibilities of Members
as well as sub-brokers.
Sub - Broker Application Forms