STOCK BROKERS
A broker is an intermediary who arranges to buy and sell securities on behalf of clients (the buyer and the seller).
According to Rule 2 (e) of SEBI (Stock Brokers and Sub-Brokers) Rules, 1992, a stockbroker means a member of a recognized stock exchange. No stockbroker is allowed to buy, sell or deal in securities, unless he or she holds a certificate of registration granted by SEBI.
A stockbroker applies for registration to SEBI through a stock exchange or stock exchanges of which he or she is admitted as a member. SEBI may grant a certificate to a stock-broker [as per SEBI (Stock Brokers and Sub-Brokers) Rules, 1992] subject to the conditions that:
a) he holds the membership of any stock exchange;
b) he shall abide by the rules, regulations and bye-laws of the stock exchange or stock exchanges of which he is a member;
c) in case of any change in the status and constitution, he shall obtain prior permission of SEBI to continue to buy, sell or deal in securities in any stock exchange;
d) he shall pay the amount of fees for registration in the prescribed manner; and
e) he shall take adequate steps for redressal of grievances of the investors within one month of the date of the receipt of the complaint and keep SEBI informed about the number, nature and other particulars of the complaints.
While considering the application of an entity for grant of registration as a stock broker, SEBI shall take into account the following namely, whether the stock
broker applicant –
a) is eligible to be admitted as a member of a stock exchange;
b) has the necessary infrastructure like adequate office space, equipment and man power to effectively discharge his activities;
c) has any past experience in the business of buying, selling or dealing in securities;
d) is being subjected to any disciplinary proceedings under the rules, regulations and bye-laws of a stock
exchange with respect to his business as a stockbroker involving either himself or any of his partners, directors or employees
A broker is an intermediary who arranges to buy and sell securities on behalf of clients (the buyer and the seller).
According to Rule 2 (e) of SEBI (Stock Brokers and Sub-Brokers) Rules, 1992, a stockbroker means a member of a recognized stock exchange. No stockbroker is allowed to buy, sell or deal in securities, unless he or she holds a certificate of registration granted by SEBI.
A stockbroker applies for registration to SEBI through a stock exchange or stock exchanges of which he or she is admitted as a member. SEBI may grant a certificate to a stock-broker [as per SEBI (Stock Brokers and Sub-Brokers) Rules, 1992] subject to the conditions that:
a) he holds the membership of any stock exchange;
b) he shall abide by the rules, regulations and bye-laws of the stock exchange or stock exchanges of which he is a member;
c) in case of any change in the status and constitution, he shall obtain prior permission of SEBI to continue to buy, sell or deal in securities in any stock exchange;
d) he shall pay the amount of fees for registration in the prescribed manner; and
e) he shall take adequate steps for redressal of grievances of the investors within one month of the date of the receipt of the complaint and keep SEBI informed about the number, nature and other particulars of the complaints.
While considering the application of an entity for grant of registration as a stock broker, SEBI shall take into account the following namely, whether the stock
broker applicant –
a) is eligible to be admitted as a member of a stock exchange;
b) has the necessary infrastructure like adequate office space, equipment and man power to effectively discharge his activities;
c) has any past experience in the business of buying, selling or dealing in securities;
d) is being subjected to any disciplinary proceedings under the rules, regulations and bye-laws of a stock
exchange with respect to his business as a stockbroker involving either himself or any of his partners, directors or employees