In this article let us see what one has to do if he wants to become a stock broker. A stock broker is a qualified, registered and regulated professional who buys and sells stocks and derivatives in the secondary market on behalf of their clients investors, institutions etc. All transactions carried out in the stock exchanges are done through brokers only. They maintain the basic information about their clients like names, contact information, PAN number, demat and bank account details etc.

A broker may allow a client to place orders depending upon the funds which are available in the clients trading account. The brokers issue contract notes when trades are done.

They also send periodical reports about the transaction history to their clients. The online brokers may also have these details on their web site which can be accessible only by the client. A broker is not entitled to advise the clients to buy or sell a security unless they are registered with SEBI as portfolio managers and an agreement is entered into by both the client and the portfolio manager.

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Some of the brokers-cum-registered portfolio managers are Geojit Financial Services Limited, India Infoline Limited, Indiabulls Securities Limited, etc. It may be noted here these are listed companies at BSE and NSE.

There are separate procedures to become a portfolio manager.

Brokers are expected to act based on the best interests of their clients. They may inform the clients promptly about margin calls, additional documentation if required etc. This is the commission charged by the broker for the transaction.

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It could be a percentage of the trade value or flat amount per trade depending upon the agreement between the client and the broker. In India, brokers need to pay a service tax of This is passed on to the investors ultimately. Application form for membership at NSE is available from this link.

Instructions for filling are also available at the web site. It is to be noted here that those who want to become brokers. Visit this link for other segments. Once the application is received by the exchange, the membership is granted after due scrutiny and the process is given below.

Please note that this is the procedure for NSE. For other exchanges, respective web sites may be visited. Once the membership is given, the broker must comply with the rules and regulations of the exchange by providing documents like audited accounts, insurance policies, networth certificates, shareholding pattern details etc.

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The membership could be transferred to another person or a firm subject to the rules of the exchange. The following institutes in India offer educational programmes on capital markets:. It requires a lot of understanding about companies, managements, businesses, fundamentals, technicals, procedures etc.

Those who are ambitious of becoming brokers need to have plenty of investment and trading experience. India Stock Market Analysis. Please read the disclosure document before navigating further. Thursday, November 1, How to become a stock broker in India.

Definition of a Portfolio Manager: Who can become a broker in India? It is to be noted here that those who want to become brokers Should not have defaulted in a stock exchange Should not have become bankrupt Should not have been involved in fraud, dishonesty, etc. The following institutes in India offer educational programmes on capital markets: Bombay Stock Exchange Training Institute, Mumbai National Stock Exchange of India, Mumbai Institute of Financial and Investment Planning, Mumbai All India Centre for Capital Market Studies, Nasik Institute of Chartered Financial Analysts of India, Hyderabad Institute of Cpital Market Development, New Delhi Institute of Company Secretaries of India, New Delhi Conclusion: Share to Twitter Share to Facebook Share to Pinterest.

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