The stockbroker acts as an agent for the buyers and sellers of securities. They are performing a service for the investor when they buy or sell for the seller on behalf of the client. They make sure that the client gets the best price. They charge a commission for providing this service known as brokerage.

The stockbroker not only provides valuable information and service but also assist the client in making a correct investment decision. Stockbrokers are qualified to provide answers to the numerous questions an investor may have and also assist them in participating in the stock market.

Every stockbroker must be a member of a stock exchange, and must also be registered with SEBI. The SEBI registration number and other details can be found in the registration certificate issued by SEBI. They are also bound by the various directives of SEBI and stock exchange that are issued from time to time.

Stockbrokers are regulated and governed by:-

• The SEBI Act of 1992, Securities Contracts (Regulation) Act of 1956
• Securities and Exchange Board of India (Stockbrokers and Sub brokers) Rules and Regulations of 1992.
• Regulations, Rules, and Bye-laws of the stock exchange of which he is a member.

To know whether a broker is registered or not, every broker is mandated to display the registration details on their website and all the official documents. The registration details can also be confirmed on the SEBI website which provides the details of all registered brokers. The registration number starting with the letters “INB” denotes the broker while that of a sub-broker the number is preceded with the letters “INS”. Given below are some of the leading Stock Broking firms in India.

Sharekhan

ICICIdirect

HDFC

India bulls

Geojit Securities

Reliance Money

Religare

Angel Broking

IndiaInfoline

Before opening a trading account with any broker, Investors are advised to check their terms and conditions. The brokerage charges for delivery and intraday trades, minimum transaction charge, statement charges, DP charges, annual maintenance charges, etc., may differ from broker to broker. The government tax rates such a service tax, security transaction tax, stamp duty, exchange transaction tax, etc. are of course uniform.