Application for registration:
No person shall act as a stock broker, unless he obtains a certificate of registration from the Board:
For the purpose of this sub-regulation, it is clarified that no separate registration shall be required for a stock broker registered with the Board to operate in more than one stock exchange, of which he is admitted as a member, subject to grant of approval by the concerned stock exchange.
Furnishing of information, clarification:
Consideration of application for grant of registration:
The Board shall take into account for considering the grant of a certificate, all matters relating to trading, settling or dealing in securities and in particular the following, namely, whether –
Procedure for registration:
The Board may, after consideration of the application under regulation 3 and on being satisfied that the applicanthas complied with the conditions laid down in regulation 5 grant a certificate of registration in Form D to the stock-broker, and send intimation to that effect to the stock exchange(s) of which it is a member.
Procedure where registration is not granted:
|Holds funds in an account||Holds securities in an account|
|Transfers funds between accounts on the instruction of the account holder||Transfers securities between accounts on the instruction of the BO account holder|
|Facilities transfer without having to handle money||Facilities transfer of ownership without having to handle securities|
|Facilities safe keeping of money||Facilities safe keeping of securities|
|Depository is a place where financial securities are held in dematerialised form.||Depository Participant (DP) is described as an Agent (law) of the depository.|
|It is responsible for maintenance of ownership records and facilitation of trading in dematerialized securities.||It is the intermediaries between the depository and the investors.|
|The relationship between the DPs and the depository is governed by an agreement made between them two under the Depositories Act.||In a strictly legal sense, a DP is an entity who is registered as such with SEBI under the subsection 1A of Section 12 of the SEBI Act.|
Share Transfer Agent
According to SEBI
Merchant Bank Services:
This service deals with issuing equity shares, preference shares, and debentures that acts as a partner for a high net-worth client by issuing shares and debentures to the general public.
It is a service where a merchant bank invests in different kinds of financial instruments on behalf of clients as well as manages the whole investment.
Project counselling also involves filling up application forms and trying to fund projects through banks or financial institutions.
In this case the bank provides term loans for the projects that need money.
This is one of the main services offered by merchant bankers. It is a guarantee that states that if the subscription is below a specified level, then the merchant banker has to subscribe to the said amount.
Merchant Baking In India:
Public Sector Merchant Bankers
Private Sector Merchant Bankers
Foreign Players in Merchant Banking
Merchant Baking Functions:
The important functions of merchant banking are discussed below:
Raising funds for clients:
Merchant banking helps clients raise funds by issuing shares, debentures and bank loans. This helps clients raise funds both in the domestic as well as the international market.
Handling government consent for industrial projects:
Brokers in stock exchange:
Advice on expansion and modernization:
Managing public issue of companies:
Merchant bankers advise and manage public issues of companies.
Services to private sector units:
Special assistance to small companies:
Merchant banks advice small companies on business opportunities, government benefits, incentives and policies.
Management of interests and dividends:
Money market operation:
Merchant bankers deal with short term money market instruments like commercial paper issued by large corporate firms, government bonds, and treasury bills issued by the RBI and so on.
Merchant bankers also help in leasing services where the lessor allows the use of specific assets to the lessee for a certain period on behalf of rentals or fees.
Below section clearly explains the regulation process of Debenture Trustee:
In India, Debenture Trustees are regulated by SEBI.
What is Credit Rating?
A credit rating is an assessment of the credit worthiness of a borrower in general terms or with respect to a particular debt or financial obligation. A credit rating can be assigned to any entity that seeks to borrow money — an individual, corporation, state or provincial authority, or sovereign government.
Applicants can seek registration as an AIF in one of the following categories, and in sub-categories thereof, as may be applicable:
Category I AIF:
AIFs which invest in start-up or early stage ventures or social ventures or SMEs or infrastructure or other sectors or areas which the government orregulators consider as socially or economically desirable and shall include venture capital funds, SME Funds, social venture funds, infrastructure funds and such other Alternative Investment Funds as may be specified.
Category II AIF:
Category III AIF:
AIFs which employ diverse or complex trading strategies and may employ leverage including through investment in listed or unlisted derivatives Various types of funds such as hedge funds, PIPE Funds, etc. are registered as Category III AIFs.
b. a body corporate with a net worth of at least ten crore rupees ; or
Fund of funds:
Sponsor is any person(s) who set up the AIF and includes promoter in case of a company and designated partner in case of a limited liability partnership .
Banker to an issue means a scheduled bank carrying on all or any of the following issue related activities namely: