PRESENTATION ON STOCK

BROKING
Prepared by:
Ekta khunt
Avani khunt
STOCK BROKING
Itincludes following:
Stock Broker
Sub Brokers
Trading & clearing members
Foreign brokers
Stock Broker
MEANING:
Stock broker is member of a recognized
stock exchange who buys, sells or deals in
securities.
REGISTRATION
A broker seeking registration with the
SEBI has to apply through the stock
exchange of which he is member.
Application must be forwarded within 30
days
Condition of registration
Payment of Fees
CODE OF CONDUCT
 Stock broker has to maintain high
integrity ,promptness and fairness with
due skills, care and diligence in the
conduct of all his business.
He should not indulge in manipulative,
fraudulent or deceptive transactions or
schemes or spread rumors.
GENERAL OBLIGATION AND
RESPONSIBILITIES
Every stock broker is required to keep
and maintain books of account ,records
and documents.
Procedure of inspection
Contravention of the SEBI Act Rules and
regulation
Monetary penalty
Penalties specified under SEBI
Intermediaries Regulation,2008 including
suspension or cancellation of certificate of
registration.
Prosecution U/S 24
SUB BROKER
MEANING: Sub broker acts on behalf of a
stockbroker as an agent or otherwise for
assisting investors in buying, selling or
dealing in securities through such broker.
Sub broker want to do business with more
than one broker
Sub broker would have to disclose the name
of all sub broker /brokers with whom
direct/indirect interest in the same firm.
REGISTRATION
According to the SEBI regulation
currently in force a sub broker is required
to submit along with the application:
A recommendation from a stock broker
with whom he will affiliated.
Two references including one from a
stockbroker.
GENERAL OBLIGATION
Payment of fees: annual fees paid by sub
broker is Rs. 10,000 for an initial period
of five years.
After the expiry of five years, Rs.5000 is
payable
Maintain books of accounts
CODE OF CONDUCT
 Stock broker has to maintain high
integrity ,promptness and fairness with
due skills, care and diligence in the
conduct of all his business.
A sub broker should not disclose or
discuss with any other person.
He does not encourage sales or purchase
of securities for brokerage and
commission.
Trading and Clearing/Self-clearing
members
 meaning
 Registration
 Payment of fees
 Code of conduct
 obligation
Trading and Clearing/Self-clearing
members
 Trading Member is a member of a derivative
exchange/derivative segment of stock exchange who settles
the trade in the clearing corporation through a clearing
member.
 Clearing member is a member of a clearing
corporation of the derivative exchange who may
clear and settle transaction in securities.
 Self-clearing member is a member of a clearing
corporation/house who may clear settles transactions
on its own account or on account of its clients only.

Con…..
Registration:
◦ registration with the SEBI by trading member
◦ Forward to 30 days
◦ Whether the applicant is
1)eligible to be admitted as a trading member
2)Has necessary infrastructure like office space,
equipment and manpower to effective his activity
3)Is subjected to disciplinary proceedings under the
rules/regulation
4)Has financial liability which is due and payable to
SEBI
Payment of Fees
Clearing member – 50,000 every year
Trading member - .0001 % of turnover
Self-clearing – primary liability,15%
interest on unpaid amount or late payment
Code of conduct
Specified in the rules/laws/regulation of
DE/DSSE
A clearing member should
1)Know your client format
2)Risk disclosure document
Trading and clearing member of currency
derivative segment
 Registration
 Payment of fees
 Code of conduct
Con…..
Registration:
◦ registration with the SEBI by trading member
◦ Forward to 30 days
◦ Whether the applicant is
1)eligible to be admitted as a trading member
2)Has necessary infrastructure like office space,
equipment and manpower to effective his activity
3)Is subjected to disciplinary proceedings under the
rules/regulation
4)Has financial liability which is due and payable to
SEBI
Payment of Fees
Clearing member – 50,000 every year
Trading member - .0001 % of turnover
Self-clearing – primary liability,15%
interest on unpaid amount or late payment
Code of conduct
Specified in the rules/laws/regulation of
DE/DSSE
A clearing member should
1)Know your client format
2)Risk disclosure document
THANK YOU