Sub-brokers are now authorised persons
SEBI discontinued sub-brokers as a separate category of intermediary in August 2018. Existing sub-brokers had until 31 March 2019 to become authorised persons of a broker, or brokers themselves. SEBI noted that there was no difference in the operative role of the two.
An AP is an agent of a stock broker. The broker appoints the AP, and the stock exchange approves and registers them; APs are not registered with SEBI. An AP gives clients access to the broker's trading platform and usually earns a share of the brokerage. Client money and securities stay with the broker.
Who may decide trades for other people
| Role | Can decide trades for clients? | What it means |
|---|---|---|
| SEBI-registered portfolio manager | Yes, under a discretionary agreement | Registered under SEBI's Portfolio Managers Regulations, with a minimum investment of ₹50 lakh per client |
| Authorised person (AP) | No | The broker's agent, giving clients access to the broker's platform. Does not manage clients' money or choose their trades |
| Investment adviser or research analyst | No | Advises or publishes research under SEBI registration, but does not trade clients' accounts |
| Trader with their own algo | Own account and immediate family only | Immediate family means spouse, dependent children and dependent parents |
| Algo provider | Offers algos to clients through brokers | Must be empanelled with the exchanges; each algo is registered and its orders carry an Algo ID |
QuantPower is built for the fourth row: a trader running their own rules on their own account.
Algo trading for sub brokers under SEBI's 2025 rules
SEBI's retail algo framework of 4 February 2025, phased in through 2025 and 2026, covers every order sent through a broker's API. The points that matter for APs:
- Algo orders are tagged. Brokers register algos with the exchange, and orders from a registered algo carry its Algo ID.
- Providers need empanelment. Anyone who offers an algo to other traders must be empanelled with the exchanges and work through brokers, as the broker's agent.
- Self-built algos are personal. An algo you build is for your own account and your immediate family, and must stay under 10 orders a second unless it is registered with the exchange through your broker.
- Access is tied to the client. Orders use the client's own API key, from a static IP registered with their broker, after a daily login with two-factor authentication.
- No return claims. Since September 2022, brokers may not refer to the past or expected returns of an algo, or associate with platforms that do.
So an AP can introduce a tool to clients, but cannot run an algo for them or offer them one the AP built.
What APs and sub-brokers can do with QuantPower
- Trade your own account. Use QuantPower on your own broker account, like any other trader.
- Introduce clients. Explain what QuantPower does and share our guides. Each client signs up in their own name.
- Help clients set up. Explain the broker connection, the static IP and the daily login, while the client does each step.
- Teach. Run sessions on building, backtesting and paper trading strategies, with sample data and no trade calls.
What APs and sub-brokers cannot do
- Trade for clients. Choosing or placing a client's trades is a portfolio manager's job and needs SEBI registration.
- Run many accounts from one. QuantPower has no master login for several clients' accounts, and no way to copy one strategy into many accounts.
- Hold clients' credentials. A client's broker password, OTP, authenticator codes and API key stay with the client. Do not log in for them.
- Share one machine or IP. Each client registers their own static IP with their broker. Do not route several clients' orders through one computer.
- Offer your own algo. Offering an algo you built to clients makes you an algo provider, which needs empanelment.
- Promise returns. Do not quote past or expected returns from any strategy, including backtest and paper trading results.
- Call QuantPower "SEBI-approved". SEBI does not approve trading software. QuantPower is trading software, and orders go through each client's own broker.
How a client starts on QuantPower
- Open an account. The client signs up for QuantPower in their own name and starts the free trial.
- Connect their broker. They link their own broker account through the broker's official API, with their own API key. QuantPower connects 100+ Indian brokers, including Wisdom Capital, Zerodha, Upstox, Fyers and IIFL Capital, and our guide to broker connection requirements explains what the connection needs.
- Register a static IP. They register their own static IP with their broker, as SEBI's framework requires for API orders.
- Log in every trading day. They log in to their broker with their own password and two-factor code.
- Build and test their own rules. They build a strategy they understand, backtest it with costs and paper trade it on live prices.
- Set their own limits. They choose the capital, a stop loss for each strategy and an MTM stop loss for the account.
Funds and securities stay with the broker throughout.
Introducing clients through the partner programme
APs can introduce clients through the QuantPower partner programme, which is open to APs, SEBI-registered research analysts and investment advisers, and educators who make no return claims. Each client you introduce signs up, pays for their own plan and runs QuantPower on their own account. Partner terms are shared on request.
Your agreement with your broker may also cover which third-party tools you promote, so check it before you start.
Plans
No plan covers several clients' accounts; each client picks their own. The QuantPower Standard plan is free during the Beta (₹299/month after); Professional is ₹499/month and Ultimate ₹999/month, GST extra. See pricing. QuantPower offers a free trial.
Related guides
- Best broker for algo trading: broker APIs, charges and limits compared
- SEBI rules for option trading: SEBI's algo framework in plain terms
- SEBI compliance: how QuantPower works with brokers under SEBI's rules
- Algo trading for retail traders: what your clients can do with QuantPower
Start your free trial
Connect your broker, build a strategy and test it on paper before a single live order goes out.
Frequently asked questions
Can I run one strategy on all my clients' accounts?
No. QuantPower trades only the account of the person who connects it. Deciding trades for clients needs SEBI registration as a portfolio manager.
Can my clients use QuantPower themselves?
Yes. Each client opens a QuantPower account, connects their own broker account and logs in to their broker each trading day.
Can I share my own algo with my clients?
Not without empanelment as an algo provider. An algo you build may be used only by you and your immediate family.
Is a sub-broker the same as an authorised person?
In practice, yes. SEBI discontinued the sub-broker category in 2018, and sub-brokers had until 31 March 2019 to become authorised persons or brokers.
Can an AP earn from introducing clients?
Ask us about the partner programme, whose terms are shared on request. Never promise clients returns to win a sign-up.
Sources
- SEBI, circular on the role of sub-brokers vis-à-vis authorised persons (SEBI/HO/MIRSD/DoP/CIR/P/2018/117), 3 August 2018
- SEBI, circular on algorithmic trading services offered by stock brokers (SEBI/HO/MIRSD/DOP/P/CIR/2022/117), 2 September 2022
- SEBI, circular on safer participation of retail investors in algorithmic trading, 4 February 2025, and glide-path circular, 30 September 2025 (sebi.gov.in) (checked 20 October 2026)
- SEBI (Portfolio Managers) Regulations, 2020