This presentation is created for education purpose only. This presentation gives information about various aspects of stock broking services in India. Following are the various points covered regarding stock broking services:- 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.

2. Agenda
• 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

3. 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 Sub-
Brokers) 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.

4. Types of brokers
Broker
Full Service Discount Brokers
Broker
Discretionary
Advisory
Management

5. Full Service Broker
• Advisory
▫ Expensive
▫ Have to maintain good relationship and contact
▫ Provide financial consultant and financial advisory
services
▫ Range of products to buy E.g. bonds, MF, ETF,
CD, etc.

6. • 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

7. Discount Brokers
▫ Low cost
▫ Only buying and selling of securities
▫ No range of services
▫ No assistance

8. Nature of work
• Securities sales representatives
• Securities traders
• Securities brokers
• Securities analysts
• Broker firms

9. Regulation for brokers
SEBI checks out that the applicant….
1. Is eligible to be admitted as a member of a stock exchange
2. Has the necessary infrastructure like adequate office
space, equipment and manpower to effectively discharge his
activities
3. Has past experience in the business of buying, selling or securities
4. Could pay the amount of fees for registration in the prescribed
manner

10.  The persons eligible to become broker are:
1. Individuals;
2. Partnership firms registered under the Indian
Partnership Act, 1932;
3. Institutions, including subsidiaries of banks
engaged in financial Services;
4. Body corporate including companies as defined
in the Companies Act,1956.

11. Eligibility criteria for brokers
 Corporate & subsidiaries of banks (Rs in lakh)
Particulars Capital Capital Market Whole Sale CM CM,WDM
market & Future And Debt and &
Option Market WDM F&O
Minimum Paid- 30 30 30 30 30
up capital
Net Worth 100 100 200 200 200
Deposit with 85 110 150 235 260
NSEIL
Deposit with 15 15 * NIL 15 15 *
NSCCL
Experience Two year's experience in securities market
Education Two directors should be HSC. Dealers should also have passed SEBI approved
certification test.
Track Record 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

12.  Individuals & Partnership Firms(Rs in lakh)
Particulars Capital Capital market Whole sale CM & CM,WD
market & future and debt WDM M &
option market F&O
Net Worth 75 75 200 200 200
Deposit with 26.5 51.5 150 176. 201.5
NSEIL 5
Deposit with 17.5 17.5* NIL 17.5 17.5 *
NSCCL
Experience Two year's experience in securities market
Track The Partners/Proprietor should not be defaulters on any stock exchange.
Record They must not be debarred by SEBI for being associated with capital
market as Intermediaries.
Education The Partners/Proprietor should be HSC. Dealers should also have passed
SEBI approved certification test.

13. Admission procedure for new membership

14. Roles & functions of broker
• Main roles broker perform
▫ Buying and selling of shares and other securities
▫ Providing advisory services
▫ Provide margin
▫ Brokering other securities

15. • 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

16. Responsibility of broker
• Security
• Transaction Cost
• Deposit and Withdrawal
• Trading Platform
• Customer Service
• News about market

17. Worker ethics for broker
• Duty of Fair Dealing
• Duty of Best Execution
• Customer Confirmation
• Restrictions on Insider Trading
• Duty of Loyalty
• Authorization for Trading

18. Process of order execution
Stock exchange
Broker
Investor
DMAT of
Pull account of broker
investor

19. Ways through broker earns money
• Brokerage commissions
• Margin interest charges
• Service charges

20. Major brokerage firms in India
Broker Brokerage for Brokerage for Intraday
Delivery trading
SBICAP Securities 0.50% 0.10%
Sharekhan 0.03% - 0.50% 0.03% - 0.10%
Motilal Oswal 0.30% - 0.50% 0.03% - 0.15%
5 paisa 0.25% - 0.85% 0.07%
Angel Broking 0.50% 0.02% - 0.03%
ICICI direct 0.75% 0.15%
Indiabulls 0.25% - 0.50% 0.05% - 0.10%
HDFC Securities 0.50% 0.15%
UTI Securities 0.80% 0.15%
Religare 0.20% - 0.30% 0.02% - 0.03%
Reliance Money 0.01% 0.01%
Geogit 0.30% 0.03%
Indiainfoline 0.50% 0.10%

21. Thank you