The stock market investment process includes intermediaries who are responsible for connecting brokers with potential investors looking for customer services. An Authorised Person and remisier are two important intermediaries who deliver diverse responsibilities and services. A share market remisier serves as a sub broker who helps connect brokerage companies and investors with no direct involvement in stock market investment process. An authorised person is a registered and authorised individual appointed by the brokerage company. They introduce new clients and offer services like stock market investment recommendations to investors.
Authorised Person
An authorised person serves as an individual who is appointed by the brokerage company itself. They serve as intermediaries between brokers and investors by connecting the two and offer various services like customer support; they are recognized by exchanges like NSE and BSE in India. Their functions are as follows:
1. Acquisition of Clients
An authorised person is responsible for acquiring clients for the brokerage companies.
2. Customer service
They are responsible for delivering customer service like the resolution of customer complaints and queries.
3. Order placement:
They even assist clients in carrying out stock market transactions like buying and selling securities.
Remisier:
A remisier serves as an agent who helps in connecting potential investors and brokerage companies. They charge a commission for their service. As compared to an authorised person, a remisier does not offer order replacement services and other customer support solutions. Their features as follows:
1. Customer acquisition:
Remisier help connect and acquire clients on behalf of the brokerage companies. They serve as a connection between brokerage companies and clients thereby working as an intermediary.
2. Commission based services
Their services are based on a commission-based model where they enter into an agreement with the brokerage companies to acquire clients.
3. No customer support
Unlike an authorised person, A share market remisier does not offer order placement, customer support, and other assistance solutions.
How are a remisier and an authorised person different from each other?
1. Registration:
An authorised person serves as a registered individual who is recognized by the stock exchanges and other regulatory bodies.
A remisier on the other hand is a sub-agent who is not registered with any exchange but is affiliated and recognised by the brokerage company.
2. Type of services
An authorised person offers various services like client acquisition, order placement on behalf of clients, customer service and support, etc.
A remisier only serves as an intermediary between potential investors and brokerage companies. They do indulge in direct market transactions.
3. Income model
An authorised person enters into an income model with the brokerage company sharing profits from the trades executed on behalf of the clients.
A remisier on the other hand works in a flat commission which they get for connecting Clients with brokerage companies.
Conclusion
An authorised person and a remisier are different from each other based on their overall responsibilities, services, income model, and client interaction. An authorised person is involved directly in the stock market and brokerage company operations. Remisiers are agents who are only responsible for referring clients to brokerage companies for which they get a commission.
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