1. Chetana Hazarimal Somani College
Of COM. & Eco. & Smt. Kusumtai
Chaudhari College Of Arts
Topic:- Sub Brokers
Presented To:-
Prof. Nitesh

2. Group Members
Sr.No. Name Roll. No
1 Kiran. Badsiwal 202
2 Rupesh. Gupta 215
3 Anil. Jain 217
4 Meenakshi. Kamble 219
5 Neha. Panchal 224
6 Siddesh. Shinde 235
7 Durgesh. Shivalkar 236
8 Jeet. Shukla 239
9 Heena. Tiwadekar 244
10 Priti. Vishwakarma 247

3. Agenda
 Introduction
 How Sub Broker Is Registered?
 Eligibility Criteria For Registration As Sub Broker
 Difference Between Broker And Sub Broker
 Functions Of Sub Broker
 Code Of Conduct
 Smart Things To Know About Sub Broker In Stock Market
 SEBI Has Laid Down Certain Guidelines For Dealing With Brokers &
Sub-brokers
 Conclusion

4. Who is a sub-broker????
A sub broker is intermediately channel of
broker who serves the services of its
broker to clients and gets some
commission.
Introduction

5. How sub broker is registered????
Obtain a Certificate of Registration from SEBI
 Only deal with sub broker who is registered with
SEBI

6. Eligibility criteria for registration as sub
broker
In case of an individual:
The applicant should not be less than 21 years of age.
The applicant should not be convicted of any offence
involving fraud or dishonesty.
The applicant should at least passed 12th standard
equivalent examination from an institution recognized
by the government.
The applicant should be a fit and proper person.

7. Difference between Broker and Sub
Broker
Brokers can work on their own the sub brokers work
under a broker.
The clients themselves cannot perform due to certain
constraints like the time constraints, lack of proper
knowledge, etc.
Brokers are obliged to perform all those activities and
functions on behalf of his clients

8. Execution of orders
Issue of purchase or sale note
Breach of trust
Business and Commission
Business of defaulting clients
Fairness to clients
Investment advice
Functions of Sub Broker

9. Code of conduct
Protection of clients interests
Transactions with brokers
Legal agreement between brokers
Advertisement and publicity
Inducement of clients

10. General conduct
Failure to give information
False or misleading returns
Manipulation
Malpractices
Contd….

11. Smart things to know about sub-brokers in
stock market
•Conducting transactions in the stock market
•Dealing of investors with sub brokers
•Singing of agreement
•Issuing purchase/ sale note
•Percentage of brokerage
•Authority of issuing cheques

12. SEBI has laid down certain Guidelines for
Dealing with Brokers & Sub-brokers

13. •Do’s:
Deal only with SEBI
Valid SEBI registration certificate.
Permitted to transact in the market.
Placing orders on our behalf.
Client registration form to be signed
Enter into an agreement

14. Confirmation memo for trades done each day
Insist on bill for every settlement.
Ensure that broker’s name, trade time and number,
transaction price and brokerage are shown distinctly on
the contract note.
Ensure receipt of payment/ deliveries within 48 hours
of payout
In case of sub-broker disputes, inform the main broker
about the dispute within a maximum of 6 months.
Contd..

15. Don’ts :-
Don’t deal with unregistered broker/sub-broker.
Don’t deal with unregistered broker/sub-broker.
Don’t pay more than the approved brokerage to the
intermediary.
Don’t undertake deals on behalf of others.
Don’t neglect to set out in writing orders for higher value
given earlier over the phone.
Don’t sign blank delivery instruction slip(s) while meeting
security pay-in obligation.

16. Don’t accept unsigned/duplicate contract note/confirmation
memo.
Don’t accept contract note/confirmation memo signed by
any unauthorized person.
Don’t delay payment/deliveries of securities to the broker/
sub-broker.
Don’t get carried away by luring advertisements.
Don’t be led by market rumors or get into shady transactions
Contd….