How to Become a Stock Broker in India?
To become a stock broker in India one must meet educational criteria, pass mandatory exams, and register with SEBI. Know how to become a stock broker in India to start a career in stock market.
How to become a stock broker in India?
A stockbroker is a SEBI registered professional helping people to buy and sell shares and other securities on stock exchanges. Stockbrokers play important role in connecting investors with market, providing trading services, and sharing knowledge about financial market.
Candidates wondering how to become a stock broker in India must meet certain educational and regulatory requirements. A class 12 passout who has crossed age of 21 is eligible to become a SEBI-registered stock broker. Scroll down to know how to become a stockbroker in India, like eligibility, exams, etc.
- Who is a Stock Broker?
- Functions of a Stock Broker
- Stock Broker in India: Eligibility and Educational Requirements
- Stock Broker Registration with SEBI
Who is a Stock Broker?
A stock broker is a licensed professional who buys and sells shares and other securities on behalf of clients. In India, a stock broker bridges between investors and stock exchanges like NSE and BSE.
Indian stock markets function with two types of stockbrokers, i.e. full-service brokers and discount brokers. Full-service brokers offer trading services along with research, advisory, as well as portfolio management. Whereas, discount brokers focus on executing trades at a lower cost.
To become a stock broker in India, one must get registered with SEBI to operate legally in market. A stock broker earns through brokerage fees and transaction charges.
Also Check: Stock Broker Career Options - Career Guidance for Stock Broker
Functions of a Stock Broker
Functions of a stockbroker in India include
- Buying and selling shares and other securities.
- Executing orders on stock exchanges.
- Providing market updates and basic investment advice.
- Assisting in opening trading and demat accounts.
- Guidance in using trading platforms.
- Applying for IPO on behalf of clients.
- Ensuring compliance with SEBI rules.
- Maintaining transaction records.
Stock Broker in India: Eligibility and Educational Requirements
To become a stock broker in India, candidates must meet following criteria:
- Should be Indian citizen.
- Should have met age limit.
- Must have passed class 12.
Most brokerage firms prefer candidates with a graduation degree. Some also want candidates with degree in Commerce, Finance, or Business Economics.
Stock Broker Registration with SEBI
SEBI regulates stock markets and brokers in India. To work as a stock broker in India, candidates must register with SEBI. Candidates willing to pursue a career as a stock broker can move forward with a stock market course.
Process to register as a stockbroker in India:
- Clear the NISM Series-VIII: Equity Derivatives Certification Exam.
- Apply to SEBI for registration as a stock broker.
- Meet minimum capital requirements set by SEBI.
- Set up necessary office infrastructure and technology systems.
- Become a member of at least one recognized stock exchange (like NSE or BSE).
- Complete all documentation, like agreements and compliance forms.
- Get SEBI approval and receive a registration certificate.
One who does not have enough resources to become a stock broker in India, can also continue to the path of becoming a sub broker by registering under an existing brokerage firm.
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