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Chetana Hazarimal Somani College
Of COM. & Eco. & Smt. Kusumtai
Chaudhari College Of Arts
Topic:- Sub Brokers
Presented To...
Group Members
Sr.No. Name Roll. No
1 Kiran. Badsiwal 202
2 Rupesh. Gupta 215
3 Anil. Jain 217
4 Meenakshi. Kamble 219
5 Ne...
Agenda
 Introduction
 How Sub Broker Is Registered?
 Eligibility Criteria For Registration As Sub Broker
 Difference B...
Who is a sub-broker????
A sub broker is intermediately channel of
broker who serves the services of its
broker to clients...
How sub broker is registered????
Obtain a Certificate of Registration from SEBI
 Only deal with sub broker who is regist...
Eligibility criteria for registration as sub
broker
In case of an individual:
The applicant should not be less than 21 y...
Difference between Broker and Sub
Broker
Brokers can work on their own the sub brokers work
under a broker.
The clients ...
Execution of orders
Issue of purchase or sale note
Breach of trust
Business and Commission
Business of defaulting cli...
Code of conduct
Protection of clients interests
Transactions with brokers
Legal agreement between brokers
Advertisemen...
General conduct
Failure to give information
False or misleading returns
Manipulation
Malpractices
Contd….
Smart things to know about sub-brokers in
stock market
•Conducting transactions in the stock market
•Dealing of investors ...
SEBI has laid down certain Guidelines for
Dealing with Brokers & Sub-brokers
•Do’s:
Deal only with SEBI
Valid SEBI registration certificate.
Permitted to transact in the market.
Placing orders on...
Confirmation memo for trades done each day
Insist on bill for every settlement.
Ensure that broker’s name, trade time a...
Don’ts :-
Don’t deal with unregistered broker/sub-broker.
Don’t deal with unregistered broker/sub-broker.
Don’t pay mor...
Don’t accept unsigned/duplicate contract note/confirmation
memo.
Don’t accept contract note/confirmation memo signed by
...
Sub brokers
Sub brokers
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Sub brokers

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Sub brokers

  1. 1. Chetana Hazarimal Somani College Of COM. & Eco. & Smt. Kusumtai Chaudhari College Of Arts Topic:- Sub Brokers Presented To:- Prof. Nitesh
  2. 2. Group Members Sr.No. Name Roll. No 1 Kiran. Badsiwal 202 2 Rupesh. Gupta 215 3 Anil. Jain 217 4 Meenakshi. Kamble 219 5 Neha. Panchal 224 6 Siddesh. Shinde 235 7 Durgesh. Shivalkar 236 8 Jeet. Shukla 239 9 Heena. Tiwadekar 244 10 Priti. Vishwakarma 247
  3. 3. Agenda  Introduction  How Sub Broker Is Registered?  Eligibility Criteria For Registration As Sub Broker  Difference Between Broker And Sub Broker  Functions Of Sub Broker  Code Of Conduct  Smart Things To Know About Sub Broker In Stock Market  SEBI Has Laid Down Certain Guidelines For Dealing With Brokers & Sub-brokers  Conclusion
  4. 4. Who is a sub-broker???? A sub broker is intermediately channel of broker who serves the services of its broker to clients and gets some commission. Introduction
  5. 5. How sub broker is registered???? Obtain a Certificate of Registration from SEBI  Only deal with sub broker who is registered with SEBI
  6. 6. Eligibility criteria for registration as sub broker In case of an individual: The applicant should not be less than 21 years of age. The applicant should not be convicted of any offence involving fraud or dishonesty. The applicant should at least passed 12th standard equivalent examination from an institution recognized by the government. The applicant should be a fit and proper person.
  7. 7. Difference between Broker and Sub Broker Brokers can work on their own the sub brokers work under a broker. The clients themselves cannot perform due to certain constraints like the time constraints, lack of proper knowledge, etc. Brokers are obliged to perform all those activities and functions on behalf of his clients
  8. 8. Execution of orders Issue of purchase or sale note Breach of trust Business and Commission Business of defaulting clients Fairness to clients Investment advice Functions of Sub Broker
  9. 9. Code of conduct Protection of clients interests Transactions with brokers Legal agreement between brokers Advertisement and publicity Inducement of clients
  10. 10. General conduct Failure to give information False or misleading returns Manipulation Malpractices Contd….
  11. 11. Smart things to know about sub-brokers in stock market •Conducting transactions in the stock market •Dealing of investors with sub brokers •Singing of agreement •Issuing purchase/ sale note •Percentage of brokerage •Authority of issuing cheques
  12. 12. SEBI has laid down certain Guidelines for Dealing with Brokers & Sub-brokers
  13. 13. •Do’s: Deal only with SEBI Valid SEBI registration certificate. Permitted to transact in the market. Placing orders on our behalf. Client registration form to be signed Enter into an agreement
  14. 14. Confirmation memo for trades done each day Insist on bill for every settlement. Ensure that broker’s name, trade time and number, transaction price and brokerage are shown distinctly on the contract note. Ensure receipt of payment/ deliveries within 48 hours of payout In case of sub-broker disputes, inform the main broker about the dispute within a maximum of 6 months. Contd..
  15. 15. Don’ts :- Don’t deal with unregistered broker/sub-broker. Don’t deal with unregistered broker/sub-broker. Don’t pay more than the approved brokerage to the intermediary. Don’t undertake deals on behalf of others. Don’t neglect to set out in writing orders for higher value given earlier over the phone. Don’t sign blank delivery instruction slip(s) while meeting security pay-in obligation.
  16. 16. Don’t accept unsigned/duplicate contract note/confirmation memo. Don’t accept contract note/confirmation memo signed by any unauthorized person. Don’t delay payment/deliveries of securities to the broker/ sub-broker. Don’t get carried away by luring advertisements. Don’t be led by market rumors or get into shady transactions Contd….

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