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Presentation On Stock Broking

Stock broking involves stock brokers, sub-brokers, trading and clearing members, and foreign brokers. Stock brokers buy, sell, or deal in securities on a recognized stock exchange. They must register with SEBI and follow codes of conduct regarding integrity, fairness, and prohibiting manipulative transactions. Sub-brokers assist investors through stock brokers and also must register with SEBI. Trading and clearing members settle trades on derivative exchanges through clearing members according to registration requirements, fees, and codes of conduct specified by each exchange.

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2K views21 pages

Presentation On Stock Broking

Stock broking involves stock brokers, sub-brokers, trading and clearing members, and foreign brokers. Stock brokers buy, sell, or deal in securities on a recognized stock exchange. They must register with SEBI and follow codes of conduct regarding integrity, fairness, and prohibiting manipulative transactions. Sub-brokers assist investors through stock brokers and also must register with SEBI. Trading and clearing members settle trades on derivative exchanges through clearing members according to registration requirements, fees, and codes of conduct specified by each exchange.

Uploaded by

ocy12
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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PRESENTATION ON STOCK

BROKING
Prepared by:
Ekta khunt
Avani khunt
STOCK BROKING
Itincludes following:
Stock Broker
Sub Brokers
Trading & clearing members
Foreign brokers
Stock Broker
MEANING:
Stock broker is member of a recognized
stock exchange who buys, sells or deals in
securities.
REGISTRATION
A 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
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.
GENERAL OBLIGATION AND
RESPONSIBILITIES
Every stock broker is required to keep
and maintain books of account ,records
and documents.
Procedure of inspection
Contravention of the SEBI Act Rules and
regulation
Monetary penalty
Penalties specified under SEBI
Intermediaries Regulation,2008 including
suspension or cancellation of certificate of
registration.
Prosecution U/S 24
SUB BROKER
MEANING: 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.
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.
GENERAL OBLIGATION
Payment 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
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.
Trading and Clearing/Self-clearing
members
 meaning
 Registration
 Payment of fees
 Code of conduct
 obligation
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.

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
Payment of Fees
Clearing member – 50,000 every year
Trading member - .0001 % of turnover
Self-clearing – primary liability,15%
interest on unpaid amount or late payment
Code of conduct
Specified in the rules/laws/regulation of
DE/DSSE
A clearing member should
1)Know your client format
2)Risk disclosure document
Trading and clearing member of currency
derivative segment
 Registration
 Payment of fees
 Code of conduct
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
Payment of Fees
Clearing member – 50,000 every year
Trading member - .0001 % of turnover
Self-clearing – primary liability,15%
interest on unpaid amount or late payment
Code of conduct
Specified in the rules/laws/regulation of
DE/DSSE
A clearing member should
1)Know your client format
2)Risk disclosure document
THANK YOU

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