Operations Of Stock Broking Firms In The Country

The history of a stock broking firm in the country can be traced back to a number of years earlier when the concept was first launched in the country. Since then, the country has seen many such stock broking firms start operating from its soil, trading in stocks and equities. The huge growth of economy about thirty years back had increased the value of private holdings which were used to boost productive development and the growth of the nation. Many stock exchanges have been established since then and the buying and selling of securities and debentures.

Safeguarding of investors

A large number of investors buy shares and securities of various companies and industries that inject money in the market for the healthy growth of these industries and companies. The money that is pumped into the market should have some protection so that the investors do not lose the money they have invested by any fraudulent means. This is ensured by the stock exchanges that have set down some rules and regulations that have to be followed strictly by the persons involved in trading the stocks, equities, futures and other securities. The money provided by the investors in economic growth is put to good use with the help of these rules and regulations. For more information visit us : https://www.plindia.com/

Evolution of concept

Though the concept of stock broking was present in the country before its independence, it received structure only about forty years ago. Soon, there were many accountants and business managers who started flocking to stock exchanges to try their hand in the trading of shares and equities. It initially started with buying and selling of shares of various industries but quickly began including commodities, currency and bullion in its scope. The stock broking scenario in the country at present is at its peak with a large number of stock brokerage firms in India competing to bring in more investors into the market.

Registering as broker

The government of the country has formed many regulatory boards to oversee the healthy trade of shares and stocks in the market. When a firm wants to become a member of the stock exchange, it has to submit an application to the board to that effect. There are many things that are considered by the board before the firm is granted membership. The Board examines whether the firm is eligible to become a member or not. It asks for proof of whether the firm has an office space and manpower required to carry out the trade. It asks the firm to show whether it has any past experiences in trading activities.

Completing the formalities

It asks for a declaration from the stock broking firm to abide by the rules and regulations of the stock exchange before issuing the certificate of membership to the firm. In case the board finds some irregularities in information supplied by the applicant, the board may reject its application. The applicant may ask the board to reconsider its decision within a certain period, but the final decision of granting membership lies with the board.