Here is the process to follow to become Stock Exchange Trading Member or a Broker in India. As you all know Broker means a member in recognized stock exchange who will said be the authorized trader.
Steps to become a Trading Member (Broker) in National Stock Exchange of India Ltd
1. Eligibility: Indian Citizen, 21 years, HSC or equivalent qualification, 2 years experience in stock market relative affairs.
2. Necessary Infrastructure:- Office space, Manpower, Equipment (according to the NSE norms)
3. Disciplinary Proceedings: – Not convicted involving fraud & dishonesty
4. Fitness:- Not Bankrupt, Not default in any stock exchange, not previously refused by NSE, fully discharged from Debts by creditors (self declaration)
5. First Send Application to stock exchange for broker ship- stock exchange send that application to SEBI 30 days SEBI satisfy above 1 & 2 points to grant Certificate of Registration.
6. Maximum Commission of the broker 2.5% (including sub broker commission 1.5%) on Cash Market and Future Market Buy and Sell Values but option Market 2.5% is charged on (Strike Price + Premium) Value. Note:- but real time brokers collecting for delivery transactions around 0.50%
For Intra-day transactions around 0.05%
For Option Market for each lot Rs.10 to Rs.50
7. Membership transfer fee Rs. 1 Lakh.
8. In case if you want TM cum CM Broking Card for individual and Firm Rs.300 Lakhs net worth is required,
In case if you want TM cum CM Broking Card on behalf of Company Rs.300 Lakhs net worth plus Rs.30 Lakhs paid up Capital is required.
9. Dominant Promoters
a) For individual:- (not exceeding 4 members) his & his spouse not less than 51%. One Person Graduation is compulsory.
b) For Firm:- not less than 51% his & his spouse, children’s & brothers One Person Graduation is compulsory.
C) Corporate company:- Not less than 40% of the directors share holding (at least 50% each director) 2 Directors Graduation is compulsory.
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