If you are one of those who want to become a stockbroker in India, then read on as this article will help you learn the process and procedure involved in becoming a broker.
To be a stockbroker, you must apply for a trading member of the stock exchange. The person should have passed 10+2 or an equivalent examination from the recognized board. Apart from this, he/she should have undergone a training course and should have passed the examination conducted by any recognized Stock Exchange.
The candidate should be at least 21 years old and should not be declared insolvent or bankrupt under any court as well as he/she should not be convicted for cheating, fraud, or default in payment of debts, etc. Further, he/she must also give an undertaking that he/she has not been refused registration by any other Stock Exchange.
In the case of individual brokers, you have to complete the formalities of SEBI registration before applying for trading membership with any stock exchange. You can get the application form for the SEBI exemption certificate from the SEBI website or from SEBI zonal offices (i.e., Hyderabad, Kolkata, New Delhi, Mumbai, and Chennai).
You can apply for trading membership with any stock exchange in India like BSE or NSE?
What is a stockbroker?
A stockbroker (also called equity broker or share broker) is a person who buys and sells stocks for investors. A stockbroker can be an individual person or a firm. The Securities and Exchange Board of India (SEBI) is the country’s stock market regulator. The SEBI has a comprehensive set of guidelines for becoming a broker in the Indian stock market, but they can be complicated to understand. Below is some basic information on how to become a broker in India.
Before you start, you need to know that there are different types of brokerage licenses available in India. If you’re interested in becoming an independent broker working out of your own office, the license you need is called “sub-broker.” If you’d rather work as an agent or sub-broker under someone else’s brokerage license, then there are three different kinds of sub-broker licenses available: large, small, and rural. This guide will go into detail about how to get all four types of licenses.
Step by Step Admission Process (Become a Share Broker)
This article is about the process of admission for share stock brokers in India.
- Applying for the membership
- Submission of documents and payment of fees
- Remitting the initial margin money
- Registration with SEBI
- Filing application for stock exchange
- Approval from the stock exchange
How do you become a stockbroker?
In India, there are two ways to become a stockbroker:
- Become an Authorized Person (AP) with an existing Member of an exchange;
- Become a Trading Member of an exchange.
An Authorized Person (AP) is an individual who is registered with an existing Member of an exchange as an AP to carry out trading on behalf of their clients. The AP has to pass NISM Series VIII certification exam before taking up this role. APs can work in different roles like sub-broker, DSA, banker, etc.
Certificate courses for Stockbroking
Following are Certificate courses for Stockbroking such as:
- NSE’s Certification in Financial Markets
- NSE’s Certified Market Professional
- Certificate Programme on Capital Markets
- A PG Diploma in Capital Market and Financial Services
- Post Graduate Diploma in Fundamentals of Capital Market Development
Entrance Exams for Stockbrokers
Candidates can take a variety of entrance exams to seek admission to top stockbroking institutes:
- BSE Certification on Central Depository
- BSE Certification on Derivatives Exchange
- BSE Certification on Currency Futures
- BSE Certification on Securities Markets
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