How To Become A Stock Broker In India

February 23, 2023

How To Become A Stock Broker In India? [Complete Step by Step Guide]

As you might have seen in various movies like Wolf of Wall Street, Scam 1992, Bazaar, etc., stock brokers are showcased as having one of the most lucrative careers.

But nobody talks about how to become a stockbroker. Well, that’s exactly what you are going to learn today!

Content:

Step-by-Step Admission Process (Become a Share Broker)

Follow the below steps to become a stock broker:

  1. Step 1: You need to submit a New Membership Application to the Membership Services Department in NSE.
  2. Step 2: Once approved by the Membership Services Department, the application is sent to the Membership Recommendation Committee and Membership Selection Committee.
  3. Step 3: The membership Selection Committee evaluates the application and sends it for approval to Member Compliance Department.
  4. Step 4: Once approved, the Offer Letter of Provisional Membership is sent to you. 
  5. Step 5: You need to submit documents to the SEBI for registration. Once approved SEBI Certificate will be sent to you, and finally, the trading system will be provided.

Do you know you can also become a sub-broker? Know more about it here! 

What are the Qualifications of a Stock Broker?

  1. You should be a 21-year-old Indian Citizen.
  2. Should have at least completed Higher Secondary College or 10 + 2 to become a stock broker. 
  3. You need to have an experience of not less than 2 years as a partner or authorized assistant or authorized clerk or remisier or apprentice to a Stock Broker.

Click here to check the eligibility requirements of a partnership firm.

What is the Stock Broker’s Salary in India?

The Stock Brokers Salary is not fixed. He gets brokerage commissions from his clients. Whenever his clients buy or sell stocks, he receives a certain amount of commission. The stock broker can earn a commission of ₹ 5000 to ₹ 100 Crores per month. It all depends on the number of clients he has. The higher the number of clients trade, the higher the commission will be.

Stock Broker Course – Other Eligibility Criteria

Either the Owner, Any Designated Director/Partner, or the Compliance Officer of the entity MUST be certified either in the Securities Market (Basic) Module or Compliance Officers (Brokers) Module or any relevant module below wherein the membership of the exchange is sought for:

  • Capital Market (Dealers) Module
  • Derivatives Market (Dealers) Module
  • National Institute of Securities Markets (NISM) Series I Currency
  • Derivatives Certification Examination

Deposit and Networth Requirement to become a broker in Stock Market

The below table represents the Deposit and Networth Requirements to become a broker in Stock Market:

SegmentCash – NSE (₹ in lakhs)Non-Cash – NSE (₹ in lakhs)Total Deposit (₹ in lakhs)Net Worth (₹ in lakhs)
Capital & Market26.526.575
Futures & Options252575
Currency Derivative Segment21315100
Commodity Derivatives5550

Fees & Charges to become a Financial Broker

  • Application Processing Fees: ₹ 10,000+ Applicable Tax.
  • Admission Fees: 
    • For all segments (except “Only Debt”): ₹ 5,00,000 + applicable tax
    • For the “Only Debt” segment: ₹ 1,00,000 + applicable tax 
  • Annual subscription charges (Capital Market Segment): ₹ 50,000 p.a..+ Applicable Tax.
  • Minimum transaction charges (Futures & Options segment): ₹ 1,00,000 p.a. + Applicable Tax.
  • Transaction charges (Currency Derivatives segment) ₹ 50,000 p.a. + Applicable Tax.

Who cannot be a Stock Broker?

You cannot be a Stock Broker if:

  • You have been adjudged bankrupt or been proved to be insolvent.
  • Compounded by creditors for the incomplete discharge of debts.
  • You have been convicted of an offense involving fraud or dishonesty.
  • Engaged in business like personal financial liability, merchant banking, underwriting, and investment advisory services.
  • Expelled or declared a defaulter by any stock exchange or debarred from trading in securities by Regulatory Authorities like SEBI, RBI, etc.

Check out this link to learn Who Cannot Be a Stock Broker in detail.

We hope that you are clear about the topic. But there is more to learn and explore when it comes to the stock market, and hence we bring you the important topics and areas that you should know:

Sub Broker Terminal
How to Become a Sub Broker?
How to Become a Stock Broker?

Quick Summary

  • To become a stockbroker: One should be a 21-year-old Indian citizen, should have completed at least 10+2 or higher secondary college, and should also have an experience of not less than 2 years as a partner or authorized assistant or authorized clerk or remisier or apprentice to a Stock Broker.
  • Stock Brokers’ Salary is not fixed. He earns commission and brokerage when his clients buy or sell stocks.
  • One must be certified either in the Securities Market (Basic) Module or Compliance Officers (Brokers) Module or any relevant module 
  • Application Processing Fees: ₹ 10,000+ Applicable Tax.
  • You cannot become a stock broker if you have been adjudged bankrupt or been proved to be insolvent, compounded by creditors, convicted for an offense involving fraud and dishonesty, etc.

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