When people want to invest in the stock market, they usually rely on the services of an Authorised Person. Brokers appoint Authorised Persons, who get a commission for each transaction. The broking house, on its part, provides infrastructure, training and other support.

What’s the eligibility criteria for being an Authorised Person? Do you need to have special qualifications for it? Read more to find out.

• An aspiring Authorised Person should also have good knowledge of financial markets. This will help them advise clients on what stocks to buy. They should recommend stocks that are suited to the risk and return expectations of the client. For example, large-cap stocks that offer stable returns may be suitable for investors with a low-risk appetite. Medium or small-cap stocks are more suited for investors who want higher returns.
• Knowledge of the economy is also a plus. This is because events that affect the economy will also affect the financial market. For example, a poor harvest will lower demand for goods in the rural population and thus affect the health of the economy overall.
• Broking business is a very competitive one, and you need to be able to persuade investors to make you the advisor of choice. You’ll also need to educate and inform them about the various options available.
• General awareness about the international markets is also good for Authorised Persons. The world is increasingly interconnected, and happenings in one part of the world will affect Indian markets as well. Computer literacy would help the Authorised Person as Stock market trading takes place electronically, so it is advisable for the Authorised Person to be tech savvy. Also, Angel One provide rule based investment suggestions.
• Management skills also could come in handy. This is because, after a certain point, it’s all about managing people and resources and using them effectively.

As we can see, the eligibility criteria for Authorised Persons is not all that high. You don’t need any fancy degrees to be one. However, having a good knowledge of financial markets would help. You will also need some capital to make the refundable deposit with Angel One. It’s a competitive business, but if you are motivated and have a zeal to succeed, you will be able to get a lot of clients. Angel One is quite generous with commissions, which can range from 50 percent to 70 percent. So it can be a venture that could pay off.

As we can see, the eligibility criteria for Authorised Persons is not all that high. You don’t need any fancy degrees to be one. However, you must have a good knowledge of shares and other investment options, plus the functioning of the financial markets. You will also need some capital to make the refundable deposit with the broker, and to make investments in an office, some staff, computers and furniture. It’s a competitive business, but if you are motivated and have excellent communication skills, you will be able to get a lot of clients. Brokers are quite generous with commissions, which can range from 50 percent to 90 percent. So it can be a venture that could pay off.