BY:

HIMANSHU
JINDIA
JUHI DARGAN
SUKHBIR SINGH

VIDYANAND KUMAR
 Securities Broking

“the right destination for financial

talent”
Introduction
Broker
primarily work as agent for buying and
selling of securities
earn commission for each of the
transactions

“Broker is an intermediary who facilitates

entry & exit in Equity market”
History
• Origin

• Pre-Independence Scenario

• Post-Independence Scenario
Economic Environment
Structure
• 191 companies listed under NSE and BSE

• Divided into four regions

 North – 40%
 South – 24%
 East – 5%
 West -- 31%

Source : CMIE
database(Prowess)
Income of the Industry

Source : CMIE
database(Prowess)
Trading Statistics of Stock
Exchanges

Source : SEBI Handbook 2009

Registered Brokers and Sub-
Brokers
Stock Exchanges Brokers Sub-Brokers
Ahmadabad 325 96
Bangalore 257 158
BSE 984 30059
Bhubaneswar 213 17
Calcutta 926 84
Cochin 435 43
Coimbatore 135 19
Delhi 375 261
Gauhati 103 4
ICSE 946 3
Jaipur 488 33
Ludhiana 301 36

Source : SEBI Handbook 2009

 Contd.
Stock Exchanges Brokers Sub-Brokers
Madhya Pradesh 174 5
Madras 183 110
NSE 1243 31328
OTCEI 713 19
Pune 188 156
UPSE 351 3
Vadodara 312 37
Total 8652 62471

Source : SEBI Handbook 2009

Shining Stones of the Industry
Major Players

Source : CMIE
database(Prowess)
Advertisement
Source : CMIE
database(Prowess)
Products
Major Element of Cost

Source : CMIE database

(Prowess)
TECHNOLOGICAL
ENVIRONMENT
Introduction
Development in information, communication and network
technologies

Created a paradigm shift in securities market operations

Bringing about innovations in product and services

Provide new business opportunities

Insure timeliness and satisfaction in customer service

Technology of NSE
• IT set is largest by any company in India

• Use satellite communication technology

• Energize participation from around 200 cities

spread all over the country
• With up gradation of trading hardware, NSE today
can handle up to 15 million trades per day
Source :
www.nseindia.com
Types of Trading Environment
Mobile Trading
Broking houses are now betting on mobile

trading to boost revenues

Provides a Java application for your cell phone

BSE launched its Mobitrack service

Political and Legal
Environment
 Why strict rules and
regulations are there
in stock market?
STOCK MARKET AND SCAM

Harshad Mehta scam (4000 crores) : 1992

Ketan Parekh scam (2000 crores) : 2001

Source : www.subashares.com
SECURITIES AND EXCHANGE BOARD
OF INDIA
How to become a Stock Broker?

SEBI (STOCK BROKERS AND SUB-BROKERS)

RULES AND REGULATION,1992

 Registration of stock brokers

 Registration of sub-brokers

 Code of conduct for stock brokers

 Code of conduct for Sub-brokers

Source : SEBI Manual, 2007

Cont.
 Regulation of transaction between clients and brokers

 Risk disclosure document

 Unique client code

 Model tripartite agreement

 Dealing by foreign brokers

Source : SEBI Manual, 2007

Bitter & Curative experience in
legal frame work
Badla in share market (Badla to Derivatives)

 Harshad Mehta Scam and Others.

 Settlement Period & Settlement Cycle

 Know your customers (KYC Norms)

Source : www.ezineaticles.com
Socio-Cultural
Environment
Psychological Nerves
People encourage themselves to invest in stock market

Festivals
Social Responsibility
Provide the facility of free demonstrations

Limited number of clients under the relationship

manager

Promotional activities for the awareness of the

customer

Co-operation with other department and other

branches

Should not give fake news to their customers

Contd.
Complete information about products and

services offered
Educate about the rules and regulations of

SEBI to its customers

Health of Brokers

Neck inclined to one side causes pain

Headache

Loss in Vision

Stress

Diabetes due to stress

 AN K
TH
YO U