VISIT TO A

BROKING FIRM
By Shubham Gupta
REGISTRATION OF THE CLIENT

1. Pan
Bank Proof
(Cancelled
Card
Cheque)

3
Address
Photograp
proof
hs

2. Sign the KYC( Know your client)

After submitting the documents
The client posseses:

De-materialised
Account Trading Account

Along with a specific client code which is used

every time whenever the client intends to buy or
sell the shares.
HOW TO MAKE PURCHASES AND SALES?
 If the client has opted for trading online:

Opt the Make

securiti
es a bid
•In case the client doesn’t intends to
trade online, then he needs to follow
the following steps:
1. Call the broker with whom he/she is
registered with.
2. Provide his/her client code.
3. Mention the securities to be
purchased
4. Mention the quantity and the prices
at which the securities are to be
purchased.
BROKERAGE AND TAXES
• Guidelines as per SEBI:
No brokerage firm can charge brokerage more
than 2.5%.

• Brokerage charged by Sharekhan:

1. For Investors: 0.4%
2. For intraday traders: 4 paisa/Rs.100 =
0.004%
• Government charges 2% tax on every
purchase and sales.
SETTLEMENT OF ACCOUNTS
1. Future And Options(F&O)
All the transactions are settled on last
Thursday of every month.

2.Spot Delivery
The system of T+T is followed.

Today + two days

HOW TO APPLY FOR AN IPO?
1. Collect the IPO form from your broker.
2. Fill the quantity to be purchased and other
revelant details.
3. Provide a cheque or draft of the amount as per
the order.
4. On the day of allotment, the shares alloted to
you will appear in your Demat account and the rest
will berefunded to your bank account within 2-3
working days.
PRESENT SCENARIO
 Total trade per day in the Indian Stock
Exchange:
1.5-2 Lac Crore
 1.5 lac
Crore

NSE(Cash trading)
BSE Rs.5,000/- Cr Rs.7,000-8,000Cr Rest Comes from F&O
HOW A BROKER GETS HIS LICENCE?
Following are the essential to become a
broker:
 A minimum of 3 years of experience in a
broking firm, or any other job related to
stock market.
 Clear the examination conducted by SEBI
 Fill the necessary fees
LICENSE FOR
TRADING AT
NSE
 LIECENSE
FOR
TRADING AT
BSE
 HISTORY OF THE FIRM
Mr. Golaskar after completing his graduation
worked as a clerk at MD Shukla Securities.
Later he joined SSKI securities(now
Sharekhan) as a branch manager in Mumbai.
After that he got transferred to Ahmedabad.
Here he worked for a couple of years and
finally in 2002 he got into partnership with
Sharekhan and as a sub-broker started his
own brokerage house.
Some details about the brokerage firm
CUSTOMER BASE:
 The firm has a customer base of approximately
370 customers with an average investment of
Rs.1,00,000
per customer.
INTRADAY VOLUME:
 The intraday volume is around Rs.92,00,000-
Rs.1,00,00,000/-
per day.
TECHNICAL ANALYSTS:
Technical analysts are not present at a sub-
brokers branch. They get all the technical
assistance from
the technical analysts of the broker sitting at
the head office in Mumbai.

TIPS PROVIDED TO CUSTOMERS:

Tips to the customers are also provided as per
the
guidelines given by the head office. But,
Mr.Golaskar also gives tips based on his personal
judgement.
 A NK
T H !
O U
Y