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634833765382236250
634833765382236250
634833765382236250
Introduction Types of broker Nature of Work Regulation for brokers Eligibility Criteria for Membership Admission Procedure for New Membership Role & function of brokers responsibility of broker Worker ethics for broker Process of order execution Ways through broker earn money Major brokerage firms in India
Introduction
A stock broker is an intermediary who arranges to buy and sell securities on the behalf of clients (the buyer and the seller).
According to SEBI (Stock Brokers and SubBrokers) Regulations, 1992, a stockbroker is member of a stock exchange and requires to hold a certificate of registration from SEBI in order to buy, sell or deal in securities.
Types of brokers
Broker
Discount Brokers
Advisory
Discretionary Management
Discretionary Management
Expensive Have to maintain good relationship Take complete control over the investment Takes investment decision on behalf of customers and provide only periodical statement to the customers
Discount Brokers
Low cost
No range of services
No assistance
Nature of work
2. Has the necessary infrastructure like adequate office space, equipment and manpower to effectively discharge his activities
4. Could pay the amount of fees for registration in the prescribed manner
Minimum Paidup capital Net Worth Deposit with NSEIL Deposit with NSCCL Experience Education Track Record
15
15 *
NIL
15
15 *
Two year's experience in securities market Two directors should be HSC. Dealers should also have passed SEBI approved certification test. The Directors should not be defaulters on any stock exchange. They must not be debarred by SEBI for being associated with capital market as intermediaries
Net Worth
Deposit with NSEIL Deposit with NSCCL Experience Track Record Education
75
51.5
200
150
200
176. 5 17.5
200
201.5
17.5
17.5*
NIL
17.5 *
Two year's experience in securities market The Partners/Proprietor should not be defaulters on any stock exchange. They must not be debarred by SEBI for being associated with capital market as Intermediaries. The Partners/Proprietor should be HSC. Dealers should also have passed SEBI approved certification test.
Broker-Clients function
Client Registration Documents
Co-Contract documents
Know Your Client (KYC) document Member Constituent Agreement (MCA) document Contract note Unique Client Code (UCC) allotment Segregation of Bank Accounts Segregation of DEMAT (Beneficiary) Accounts
Responsibility of broker
Security Transaction Cost
Customer Service
News about market
Customer Confirmation
Restrictions on Insider Trading Duty of Loyalty Authorization for Trading
Broker
Investor
DMAT of investor
5 paisa
Angel Broking ICICI direct Indiabulls HDFC Securities
0.25% - 0.85%
0.50% 0.75% 0.25% - 0.50% 0.50%
0.07%
0.02% - 0.03% 0.15% 0.05% - 0.10% 0.15%
0.80%
0.20% - 0.30% 0.01% 0.30% 0.50%
0.15%
0.02% - 0.03% 0.01% 0.03% 0.10%
Thank you