broker and responsibilities
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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 holda certificate of registration from SEBI in order to buy, sell or deal in securities.
Introduction
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Broker
Full ServiceBroker
Advisory DiscretionaryManagement
Discount Brokers
Types of brokers
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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 (Mutualfunds), ETF (Exchange Traded Funds), CD (CashDeposits), etc.
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Discretionary Management
Expensive
Have to maintain good relationship
Take complete control over the investment
Takes investment decision on behalf of customersand provide only periodical statement to thecustomers
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Discount Brokers
Low cost
Only buying and selling of securities
No range of services
No assistance
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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 prescribedmanner
Regulation for brokers
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The persons eligible to become broker are:
1. Individuals;
2. Partnership firms registered under the Indian
Partnership Act, 1932;
3. Institutions, including subsidiaries of banksengaged in financial Services;
4. Body corporate including companies as definedin the Companies Act,1956.
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Admission procedure for new membership
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Main roles broker perform
Buying and selling of shares and other securities
Providing advisory services
Provide margin
Brokering other securities
Roles & functions of broker
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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
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Security
Transaction Cost
Deposit and Withdrawal
Trading Platform
Customer Service
News about market
Responsibility of broker
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Duty of Fair Dealing
Duty of Best Execution
Customer Confirmation
Restrictions on Insider Trading
Duty of Loyalty
Authorization for Trading
Worker ethics for broker
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Process of order execution
Investor
Broker
Stock exchange
Pull account of brokerDMAT ofinvestor
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Brokerage commissions
Margin interest charges
Service charges
Ways through broker earns money
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Broker Brokerage forDelivery
Brokerage for Intradaytrading
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%
Major brokerage firms in India
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Thank you