presentation on stock broking

21
PRESENTATION ON STOCK BROKING Prepared by: Ekta khunt Avani khunt

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Page 1: Presentation on Stock Broking

PRESENTATION ON STOCK BROKINGPrepared by:Ekta khuntAvani khunt

Page 2: Presentation on Stock Broking

STOCK BROKINGIt includes following:Stock BrokerSub BrokersTrading & clearing membersForeign brokers

Page 3: Presentation on Stock Broking

Stock BrokerMEANING:Stock broker is member of a

recognized stock exchange who buys, sells or deals in securities.

Page 4: Presentation on Stock Broking

REGISTRATIONA 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

Page 5: Presentation on Stock Broking

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.

Page 6: Presentation on Stock Broking

GENERAL OBLIGATION AND RESPONSIBILITIESEvery stock broker is required to

keep and maintain books of account ,records and documents.

Procedure of inspection

Page 7: Presentation on Stock Broking

Contravention of the SEBI Act Rules and regulationMonetary penaltyPenalties specified under SEBI

Intermediaries Regulation,2008 including suspension or cancellation of certificate of registration.

Prosecution U/S 24

Page 8: Presentation on Stock Broking

SUB BROKERMEANING: 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.

Page 9: Presentation on Stock Broking

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.

Page 10: Presentation on Stock Broking

GENERAL OBLIGATIONPayment 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

Page 11: Presentation on Stock Broking

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.

Page 12: Presentation on Stock Broking

Trading and Clearing/Self-clearing membersmeaningRegistrationPayment of fees Code of conductobligation

Page 13: Presentation on Stock Broking

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.

Page 14: Presentation on Stock Broking

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

Page 15: Presentation on Stock Broking

Payment of FeesClearing member – 50,000 every

year Trading member - .0001 % of

turnoverSelf-clearing – primary

liability,15% interest on unpaid amount or late payment

Page 16: Presentation on Stock Broking

Code of conductSpecified in the

rules/laws/regulation of DE/DSSEA clearing member should

1)Know your client format2)Risk disclosure document

Page 17: Presentation on Stock Broking

Trading and clearing member of currency derivative segmentRegistrationPayment of feesCode of conduct

Page 18: Presentation on Stock Broking

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

Page 19: Presentation on Stock Broking

Payment of FeesClearing member – 50,000 every

year Trading member - .0001 % of

turnoverSelf-clearing – primary

liability,15% interest on unpaid amount or late payment

Page 20: Presentation on Stock Broking

Code of conductSpecified in the

rules/laws/regulation of DE/DSSEA clearing member should

1)Know your client format2)Risk disclosure document

Page 21: Presentation on Stock Broking

THANK YOU