Uttar Pradesh - Register as Stock Broker

Advertisement

Procedure

Apply In-Person:

1. To Register as Stock Broker, the applicant must approach the nearest office of Security Exchange Board of India – link
2. An application form will be provided to the applicant by the concerned officer or the applicant must download the application form from the following link – link Refer Page No 25
3. The applicant must fill in all the necessary details in the application form. (Incomplete applications are not accepted)
4. Make sure that the applicant has attached all the necessary documents that are mentioned in the “Required Documents” section of this page.
5. The applicant must attach photocopies of the required documents along with the application form while submitting it.
6. Submit all the documents with the completed form to the concerned officer.
7. The applicant must pay the prescribed fee as requested by the authority. The fee details are mentioned in “Fees” Section of this page.
8. After receiving the application, the concerned authority will check the submitted application and document set. If all are in place, the application will be accepted.
9. All applications are processed within a reasonable time, having regard to the circumstances of each application, including the completeness of information and documents submitted to the authority by the applicant.
10. The authority may seek additional information from an applicant if this is necessary to assess the application. The authority does not need to deal further with an application until the applicant has provided this additional information.
11. The Board shall consider for considering the grant of a certificate all matters relating to buying, selling, or dealing in securities and in particular the following, namely, whether the stock broker—
12. Is eligible to be admitted as a member of a stock exchange
13. Has the necessary infrastructure like adequate office space, equipment and man power to effectively discharge his activities
14. Has any experience in the business of buying, selling, or dealing in securities
15. Is subjected to disciplinary proceedings under the rules, regulations, and byelaws of a stock exchange with respect to his business as a stock-broker involving either himself or any of his partners, directors, or employees
16. The Board on being satisfied that the stock-broker is eligible, shall grant a certificate to the stock-broker and send an intimation to that effect to the stock exchange or stock exchanges.
17. This entire process can be completed within 30 - 90 days or as per the timeline advised by the respective department authority.

Advertisement

Required Documents

• Completed application form link Refer Page No 25
• Documents asserting the type of organization like partnership deed, memorandum, and articles of association (in case of a non-individual)
• PAN of the applicant
• Educational qualifications of the applicant
• Certificate of registration or incorporation
• Certificate of passing the required module
• MOU/ copy of the Contract Agreement entered with the clearing member in case where the applicant wants to clear and settle trades through such clearing member
• Recommendation from stock exchange

Office Locations & Contacts

SECURITY EXCHANGE BOARD OF INDIA


Lucknow Local Office
3rd Floor, Eldeco Corporate Chambers-II,
Vibhuti Khand, Gomti Nagar,
Lucknow - 226010, Uttar Pradesh
Tel. Board: +91-0522-4017192 0522 - 4017193
E-mail: lucknow-lo@sebi.gov.in
Contact Details – link

Eligibility

Any registration granted by the Board under regulation shall be subject to the following conditions, namely—

• The applicant can be a person or any other organization (registered partnership firms, limited liability partnerships, corporations, companies, or institutions)
• The person must be an Indian citizen of a minimum of 21 years of age. There is no limit on the maximum eligible age for being a stockbroker.
• The minimum educational qualification to be a stockbroker is having an HSC or its equivalent.
• The stock broker holds the membership of any stock exchange
• The stock broker shall abide by the rules, regulations and bye-laws of the stock exchange which are applicable to him
• Where the stock broker proposes to change his status or constitution, he shall obtain prior approval of the board for continuing to act as such after the change
• The stock broker shall pay fees charged by the board in the manner provided in these regulations
• The stock broker shall take adequate steps for redressal of grievances, of the investors within one month of the date of receipt of the complaint and keep the board informed about the number, nature and other particulars of the complaints received from such investors

Fees

Every stock broker shall subject to pay registration fees in the manner set out below:

• Where the annual turnover does not exceed rupees one crore during any financial year, a sum of rupees five thousand for each financial year.
• Where the annual turnover of the stock-broker exceeds rupees one crore during any financial year, a sum of rupees five thousand plus one hundredth of one per cent of the turnover in excess of rupees one crore for each financial year

Use the following link to know more about fee section – link Refer page no 38

Validity

Explain the time until which the certificate/document is valid.
e.g. Birth Certificate Valid Forever

Documents to Use

• Application form – link Refer Page No 25

Sample Documents

Please attach sample completed documents that would help other people.

Processing Time

• This entire process can be completed within 30 - 90 days or as per the timeline advised by the respective department authority.

Related Videos

Videos explaining the procedure or to fill the applications.
Attach videos using the following tag <&video type='website'>video ID|width|height<&/video&> from external websites.
Please remove the '&' inside the tags during implementation.
Website = allocine, blip, dailymotion, facebook, gametrailers, googlevideo, html5, metacafe, myspace, revver,
sevenload, viddler, vimeo, youku, youtube
width = 560, height = 340, Video ID = Can be obtained from the URL of webpage where the video is displayed.
e.g In the following url 'http://www.youtube.com/watch?v=Y0US7oR_t3M' Video ID is 'Y0US7oR_t3M'.

Instructions

• Applicants must complete the application form before submitting it. Incomplete applications will not be accepted.
• Applicants must provide genuine information while applying for this procedure.

Required Information

• Name of the applicant
• Pan number
• Address
• Email
• Telephone
• Date of birth
• Gender
• Details of company
• Details of partners and directors
• Details of employees

Need for the Document

• A stock broker license is a license that is required for individuals who want to buy and sell securities on behalf of their clients. In India, the Securities and Exchange Board of India (SEBI) is the regulatory body that is responsible for issuing stock broker licenses

Information which might help

The role of a stockbroker is crucial in the financial markets, as they act as intermediaries between individual investors or institutional clients and the stock exchanges where securities (stocks, bonds, commodities, etc.) are traded. Stockbrokers play a vital role in facilitating the buying and selling of securities and providing various financial services to their clients. Here are the key responsibilities and roles of a stockbroker:

• Order Execution
• Market Information
• Investment Advice
• Portfolio Management
• Risk Assessment
• Trade Settlement
• Compliance
• Customer Service
• Margin Trading
• Financial Products
• Research

For more information – link

Other uses of the Document/Certificate

Please explain what are other uses of obtaining this document/certificate.
e.g. Birth Certificate can be used as proof of identity.

External Links

List of Stock Exchanges - link

Others

Procedure where registration is not granted.

• Where an application for grant of a certificate under regulation 3, does not fulfil the requirements, the Board may reject the application after giving a reasonable opportunity of being heard.
• The refusal to grant the registration certificate shall be communicated by the Board within thirty days of such refusal to the concerned stock exchange and to the applicant stating therein the grounds on which the application has been rejected.
• An applicant may, being aggrieved by the decision of the Board under sub regulation apply within a period of thirty days from the date of receipt of such intimation, to the Board for reconsideration of its decision.
• The Board shall reconsider an application made under sub-regulation and communicate its decision as soon as possible in writing to the applicant and to the concerned stock-exchange.