What Is an Authorised Person (AP) in the Stock Market?
Published 2026-10-16 · Aadarna Stock Broking Pvt. Ltd.
Key takeaways
- An Authorised Person (AP) is appointed by a SEBI-registered stock broker and approved by the stock exchanges.
- An AP helps you open and service your account; the broker remains responsible for it.
- An AP cannot accept your money or securities, offer assured returns, or give advice unless separately registered.
- Your account, funds and holdings are with the broker and the depository, not with the AP.
Many investors in India open their trading account through a local or online partner of a large broker rather than directly. These partners are called Authorised Persons (APs, previously known as sub-brokers). This guide explains what an AP is, what you can expect from one and where the limits are.
What is an Authorised Person?
An Authorised Person is an individual, firm or company appointed by a SEBI-registered stock broker to act as its agent, and approved by the stock exchanges for specific segments. The broker is responsible for its APs and their activities.
Aadarna Stock Broking Pvt. Ltd., for example, is an Authorised Person of Angel One Ltd., registered with NSE, BSE and MCX for the segments listed on our registrations page.
What an AP can do for you
- Help you open a trading and demat account with the broker, including e-KYC.
- Help with service requests: updating your mobile number, email, bank account or nominee, activating segments and reactivating accounts.
- Explain how the broker's app and platform work.
- Explain charges, margins and risks, so you understand what you are doing.
- Be a known point of contact when you need help.
What an AP cannot do
- It cannot accept your money or securities. All funds go only to the broker's designated client bank account; shares stay in your own demat account.
- It cannot offer assured, fixed or guaranteed returns, or any profit-sharing arrangement.
- It cannot give investment advice or recommendations unless it is separately registered with SEBI as an investment adviser or research analyst.
- It cannot trade in your account without your instructions, or ask for your passwords, OTPs or TPIN.
- It cannot issue its own contract notes. Contract notes come from the broker.
How your money and shares are protected
Your trading account is with the stock broker, which is regulated by SEBI and the exchanges. Your shares are in a demat account recorded with CDSL or NSDL. Your money moves between your own bank account and the broker's client account. The AP sits outside this flow, which is exactly what protects you.
You receive contract notes from the broker, alerts from the exchange and statements from the depository directly, so you can check everything yourself.
Why use an AP at all?
The account and pricing are the broker's, as per its tariff. What an AP adds is personal support: a known person to call or message when you are stuck, someone who explains things in your language, and help with paperwork. For first-time investors especially, that can make a real difference.
Questions to ask an Authorised Person
- Which stock broker are you attached to, and what are your exchange registration numbers?
- Which segments are you approved for?
- How do I reach the broker directly if I have a problem?
- Where exactly should I transfer money for trading? (The answer must be the broker's own account, through its official app or website.)
A genuine Authorised Person will answer these clearly and will be happy for you to verify the answers yourself.
How to verify an AP
- Ask for the AP's exchange registration numbers.
- Search them on the NSE and BSE websites and check the broker they are attached to.
- Confirm that the account opening link takes you to the broker's official website or app.
- Check that any payment instructions point only to the broker's own account.
Frequently asked questions
Is a sub-broker the same as an Authorised Person?
Yes, broadly. The sub-broker category was merged into the Authorised Person framework, so you will now mostly hear the term Authorised Person.
Do I pay more if I open my account through an AP?
Charges are as per the broker's prevailing tariff for the plan you choose. The AP is compensated by the broker as per their agreement.
If I have a complaint about an AP, where do I go?
Raise it with the AP and the broker's grievance team in writing. If unresolved, file on SEBI SCORES naming the broker, and then use the SMART ODR portal if needed.