Broker

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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.

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  • pallavi
  • pallavi
  • Arti Yadav
  • Arti Yadav
  • Arti Yadav
  • Arti Yadav
  • ShwetaAmin
  • Rahul Gadre
  • Rahul Gadre
  • Priyanka Ghadi
  • Priyanka Ghadi
  • vishal
  • manali
  • manali
  • alok
  • afreen
  • Broker

    1. 1. 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
    2. 2. 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.
    3. 3. Types of brokers Broker Full Service Discount Brokers Broker Discretionary Advisory Management
    4. 4. 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.
    5. 5. • 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
    6. 6. Discount Brokers ▫ Low cost ▫ Only buying and selling of securities ▫ No range of services ▫ No assistance
    7. 7. Nature of work• Securities sales representatives• Securities traders• Securities brokers• Securities analysts• Broker firms
    8. 8. Regulation for brokersSEBI checks out that the applicant….1. Is eligible to be admitted as a member of a stock exchange2. Has the necessary infrastructure like adequate office space, equipment and manpower to effectively discharge his activities3. Has past experience in the business of buying, selling or securities4. Could pay the amount of fees for registration in the prescribed manner
    9. 9.  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.
    10. 10. 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&OMinimum Paid- 30 30 30 30 30up capitalNet Worth 100 100 200 200 200Deposit with 85 110 150 235 260NSEILDeposit with 15 15 * NIL 15 15 *NSCCLExperience Two years experience in securities marketEducation 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
    11. 11.  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 years 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.
    12. 12. Admission procedure for new membership
    13. 13. Roles & functions of broker• Main roles broker perform ▫ Buying and selling of shares and other securities ▫ Providing advisory services ▫ Provide margin ▫ Brokering other securities
    14. 14. • 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
    15. 15. Responsibility of broker• Security• Transaction Cost• Deposit and Withdrawal• Trading Platform• Customer Service• News about market
    16. 16. Worker ethics for broker• Duty of Fair Dealing• Duty of Best Execution• Customer Confirmation• Restrictions on Insider Trading• Duty of Loyalty• Authorization for Trading
    17. 17. Process of order execution Stock exchange Broker InvestorDMAT of Pull account of brokerinvestor
    18. 18. Ways through broker earns money• Brokerage commissions• Margin interest charges• Service charges
    19. 19. Major brokerage firms in India Broker Brokerage for Brokerage for Intraday Delivery tradingSBICAP 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%
    20. 20. Thank you

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