Brokerage

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Brokerage

  1. 1. Securities Brokerage A securities brokerage is a firm trading stocks and bonds on behalf of its clients.
  2. 2. Types of brokers • Full-service brokers • Discount-service brokers • Deep-discount brokers • Online-discount brokers • Captive brokers • Independent brokers
  3. 3. Difference between Jobber & Broker in the Stock Market Jobbers and brokers both play a role in stock sales and purchases, but they're involved in different stages of the process. Brokers carry out transactions for the investors who hire them. Jobbers, on the other hand, exist to make sure that when brokers need to buy or sell shares for a client they have someone to buy from or sell to.
  4. 4. SEBI Regulations relating to brokerage business in India • As per SEBI Regulations, every stockbroker, on the basis of his total turnover, is required to pay annual turnover charges, which are to be collected by the stock exchanges. • A member is required to pay the exchange, transaction charges at the rate of 0.0035% (Rs. 3.5 per Rs. 1 lakh) of the turnover.
  5. 5. • Trading members are also required to pay securities transaction tax (STT) on all delivery based transaction at the rate of 0.125% (payable by both buyer and seller) and in case of non- delivery transactions at the rate of 0.025% for equities payable by the seller only). • As per the Finance Bill, 2008 Stock Exchanges and Clearing House Services would be charging a service tax on services rendered by them SEBI Regulations relating to brokerage business in India

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