How To Become a Stockbroker in India: A Step-by-Step Guide for Freshers
You must first submit an application to the Membership Services Department in order to become a stockbroker. The Compliance, Recommendation, and Membership Selection committee will review the application when it is filed. The SEBI Certificate issue after approval and the trading system is provided.
What is a Stockbroker?
A stockbroker is someone who wants to acquire shares in listed companies in return for a fee. The trading system you will be provided with comes with a customer representative in India. He can assist you with the various functions which you might require to ensure a smooth trading experience, including transfer of orders, following regulations, and any other relevant information you might require. Pre-work that you must do Before you go ahead and register with the Stock Broker, it is important that you familiarise yourself with the various components that go into building a portfolio.
What are the eligibility requirements?
- A graduate degree in a business-related field 2. Minimum 3 years of relevant experience 3. Minimum Rs 25,000 per month salary during the probation period 4. Formal identification proof 5. Disclose the payment of salary to the broker as required
What are the responsibilities?
- Know your client
- Track and develop financial market information
- Evaluate trading systems and methods
- Promote SEBI policies and deliver compliance reports on trading transactions
- Prepare compliance reports on regulatory transactions
- Monitor financial markets and report on them
- Regular meetings with clients
- Exchange, analyst, and research activity
- Attend company-related seminars and events
- Operating of the stockbroking firm.
How long does it take to become a stockbroker in India?
A stock broker must complete all the necessary formalities, and register as a stockbroker, after which he can start trading. At present, the process is long, tedious and you have to hire an expert to help you. You have to pass the Common Test to become a stockbroker in India. The brokerage license is granted after six years of professional trading experience. All the necessary records and documents must be submitted by you.
Following are stock broker Certificate courses for Stockbroking such as:
- NSE’s Certification in Financial Markets
- Certificate Programme on Capital Markets
- A PG Diploma in Capital Market and Financial Services
- Post Graduate Diploma in Fundamentals of Capital Market Development
- NSE’s Certified Market Professional
Stockbrokers’ Entrance Exams
Candidates can take a variety of entrance exams to get admission to better stock brokerage institutes:
The following is a list of available entrance tests in this field.
- BSE Certification on Central Depository
- Certification of on Derivatives Exchange
- BSE Certification on Currency Futures
- BSE Certification on Securities Markets
Apply for SEBI Certificate in India?
In this Guide to Becoming a Stockbroker, Instructions should be followed to apply for SEBI Certificate. – An application form should be filled out and filled in the prescribed format. Include all the necessary information, the applicable sections, and relevant data on every page. Fill in all the information. As you may be aware, under Section 12(1) of the Securities and Exchange Board of India Act 1992, no stockbroker may buy, sell, or deal in securities unless he or she keeps a certificate of registration issued by the Securities and Exchange Board of India (SEBI) and complies with the Rules and Regulations promulgated thereunder. If a current member stock broker of a recognized Stock Exchange has applied for registration within three months of the Board’s inception, he may continue to do so until the application is approved.
What are the benefits of becoming a stockbroker?
Securities markets are in a state of flux. India, especially, is facing lots of structural changes, and this is one of the key reasons for the current volatilization of the financial markets. Businesses, especially small- and medium-sized, need to be protected from the uncertainties of the financial markets. In order to do this, a stockbroker must be completely aware of the market conditions, and work closely with small and medium-sized businesses to provide them with protection from the ups and downs of the markets. Being a stockbroker means you understand the market changes that occur, and you must be aware of the latest changes in business practices. Understanding the changing needs of the financial markets requires a great deal of experience, knowledge, and depth of knowledge.
Conclusion
There are no requirements to become a stockbroker in India. You can start trading and create your own investing strategy if you can afford to pay the monthly trading charge. Stockbrokers, on the other hand, have the knowledge and ability to access financial markets and make proper judgments on your behalf. You will study what the professionals are doing overtime and be able to make an informed conclusion. Only a handful of people in India manage their financial well-being from the profession. However, it is a good option if you are in dire need of money.
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