Sunday, June 12, 2016

Role of Broker and Sub-broker in the Secondary Market



    Whom should I contact for my Stock Market related transactions?

You can contact a broker or a sub broker registered with SEBI for carrying out your transactions pertaining to the capital market.

    Who is a broker?

A broker is a member of a recognized stock exchange, who is permitted to do trades on the screen-based trading system of different stock exchanges.  He is enrolled as a member with the concerned exchange and is registered with SEBI.

    Who is a sub broker?

A sub broker is a person who is registered with SEBI as such and is affiliated to a member of a recognized stock exchange.

    How do I know if the broker or sub broker is registered?


You can confirm it by verifying the registration certificate issued by SEBI.  A broker's registration number begins with the letters "INB" and that of a sub broker with the letters “INS". For the brokers of derivatives segment, the registration number begins with the letters “INF”. There is no sub-broker in the derivatives segment.

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