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STOCK BROKER

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Stock Banker is a member of stock exchange and they are intermediaries who are allowed to trade in securities on the exchange. They buy and sell on their own behalf as well as on behalf  of their clients. A stock broker plays an important role in the secondary market helping both the seller and the buyer of the securities to enter into a transaction. When executing an order the stock broker may on behalf of his client buy or sell securities from his own account i. e. as principal acts, as an agent. 

APPLICATION FOR REGISTRATION:

▪An Application by a stock broker for grant of registration of a certificate of registration shall be made through the stock exchange of which he is admitted as a member. 

▪The stock exchange shall forward the application form to SEBI as early as possible but not later than 30 days from the date of its receipt. 

▪SEBI may require the applicant to furnish such further information or clarifications regarding the dealings in securities and related matters to consider the application for granting a certificate of registration. 

▪The applicant or its principal officer shall, if so required, appear before SEBI for personal representation. 

SEBI shall take into account following aspects:

(i) Whether the applicant is eligible to be admitted as a member of a stock exchange;

(ii) Whether he has any past experience in the business of buying, selling or dealing in securities;

(iii) Whether he was subjected to disciplinary proceedings under rules, regulations and bye laws of a stock exchange with respect to his business as a stock broker involving either himself or any of its partner, directors or employees; 

▪SEBI on being satisfied that the stock broker is eligible, shall grant a certificate of registration to him and send an intimation to that effect to the stock exchange. The stock broker holding a certificate shall at all times abide by code of conduct. 

REJECTION OF APPLICATION OF BROKERS:

▪SEBI may reject the application after giving a reasonable opportunity of being heard if application does not fulfill the requirements.

▪The refusal to grant registration shall be communicated by SEBI within 30 days of such refusal to concerned stock exchange and to the applicant stating the grounds on which the application has been rejected. 

▪An Applicant may, being aggrieved by the decision of SEBI, may apply within a period of 30 days from date of receipt of intimation, to SEBI for reconsideration of its decision. 

▪SEBI shall reconsider an application made and communicate its decision as soon as possible in writing to the applicant and to concerned stock exchange. 

▪Stock broker whose application for grant of a certificate has been refused by SEBI shall not, on and from the date of receipt of SEBI communication, buy, sell or deal in securities as a stock broker.

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