How to Become a Stock Broker in India?
To become a stockbroker 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.
A stockbroker is a SEBI registered professional who helps people to buy and sell shares and other securities on a stock exchange. Stockbrokers connect investors with the securities market, provide trading services, and share knowledge about financial market. Candidates must meet educational and regulatory requirements to become a stock broker in India. A class 12 passout who has crossed 21 years of age is eligible to become a SEBI-registered stock broker. Scroll down to know how to become a stockbroker in India.
- Who is a Stock Broker?
- What are the Functions of a Stock Broker in India?
- Stock Broker in India: Eligibility and Educational Requirements
- Stock Broker Registration with SEBI
- Stock Broker Career in India
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. Indian stock markets function with two types of stockbrokers, 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.
Also Check: Stock Broker Career Options - Career Guidance for Stock Broker
What are the Functions of a Stock Broker in India?
Functions of a stockbroker in India include
| Sr No | Function |
|---|---|
| 1 | Buying and selling shares and other securities |
| 2 | Executing orders on stock exchanges. |
| 3 | Assisting in opening trading and demat accounts. |
| 4 | Guidance in using trading platforms. |
| 5 | Applying for IPO on behalf of clients. |
| 6 | Providing market updates and basic investment advice.Ensuring all SEBI rules. |
| 7 | 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 an Indian citizen.
- Should have met age limit.
- Must have passed class 12.
Most brokerage firms hire 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 stockbroker in India, candidates must register with SEBI. Candidates willing to pursue a career as a stockbroker 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. or FINEA exam.
- Apply to SEBI for registration as a stockbroker.
- Become a member of a recognised stock exchange
- Complete all documentation, like agreements & compliance forms.
- Get SEBI approval and receive a registration certificate.
Candidates who does not have enough resources to become a stockbroker in India, can also continue to the path of becoming a sub broker by registering under an existing brokerage firm.
Stock Broker Career in India
Once the candidates has passed the Financial Industry Regulatory Authority's General Securities Representative Exam (FINRA) exam, they can proceed to become a stock broker. Once they complete stock broker registration with SEBI, they can apply for jobs as well as become an individual stock broker in India
Abhishek is a content writer and editor with 7+ years of experience in education journalism. He completed his graduation from University of Delhi with a BA Degree. At Shiksha.com, he handles content for MBA, BBA, an
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