A stockbroker is a firm or an individual who participates in the stock market on behalf of clients. A stock broker in India acts as an agent who buys/sells shares on behalf of clients and also advises them on when to buy & at what rate to sell. Moreover, the stockbroker always stays in touch with his clients and frequently updates them on stock market trends & fluctuations. Investors & traders should regard the stockbrokers as those who provide useful information & services, and in return, help them in making sound decisions on investments.you can also go with best stock brokers in india
Tips to Become a Stock Broker in India
If you are willing to become a successful stock broker in India, below-cited is the options:
- Stockbroker: If you have the sufficient capital to invest in having your stock brokerage company. you may register as a stock exchange member with a registration ID. The member registration fee is around several lakhs. Lastly, to start trading, a stock broker in India has to share their membership ID with customers.
- Sub-broker: A sub-broker is an individual who practices on behalf of a registered stock broker in India and trades under the membership of a registered stock exchange member or a stockbroker.
- Dealer: To input trades on the stock exchange portals, sub-brokers can hire a dealer, who enters the trades on the computer on behalf of the sub-broker or broker.
Now that you know that you need to invest a lot of capital. The next is to follow the below-cited steps to become a successful stock broker in India.
Step 1: SEBI Registration Application
As we all know, SEBI regulates the Equity market. Hence, it is essential to apply at SEBI for approval.
Step 2: Office Setup
Once you are through the registration process. a Compliance Officer is assigned by SEBI who will validate your eligibility by examining your office setup. Hence, ensure that you set up your office and have all the required equipment.
Step 3: Stock Exchange Membership
Now you have to take approval & membership in NSE & BSE (Stock Exchanges.)
Step 4: Depository Membership
Again, you are required to pay a fee to the depository to have the membership and also have to deposit a security amount.
Step 5: Client Details Maintenance
A stock broker in India also has to maintain the client’s information and ledger.
Final Words
Kindly note that the most crucial criterion is age. You should be at least 21 years old to become a stock broker in India. However, 18 is the minimum age to become a sub-broker or authorised individual. In case you don’t have much capital to invest or under 21 years, or don’t have two years of work experience, then you can become an authorised person or sub-broker.
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