Stock brokers are intermediaries who facilitate buying and selling of securities in the stock market. They charge a commission or fee for their services and are regulated by the Securities and Exchange Board of India (SEBI).
Table of Contents
SEBI is the apex regulator of the securities market in India and has the power to frame rules and regulations for the protection of investors and the development of the market. SEBI also monitors and supervises the activities of stock brokers and other market intermediaries.
In January 2023, SEBI amended its regulations to introduce a new category of stock brokers called Qualified Stock Brokers (QSBs). These are stock brokers who have been designated by SEBI as having a large size and scale of operations, a significant impact on investors and the market, and high standards of governance and service.
QSBs are required to meet enhanced obligations and are subjected to enhanced monitoring by SEBI and the stock exchanges. Some of these obligations include maintaining higher net worth, capital adequacy, risk management, compliance, audit, investor grievance redressal, and disclosure requirements.
The aim of introducing QSBs is to ensure that stock brokers who handle a large volume of transactions and clients are more accountable and responsible for their conduct and performance. This is expected to improve the quality of services offered by stock brokers and enhance investor confidence and market integrity.
In today’s time mostly people invest into stock market so, this article for those who invest into stock market and who willing to know about it. Before investing into Stock market everyone should open their demat account then can invest into shares.
So the news over here Stock exchanges designate 15 stock brokers as QSBS (qualified stock brokers) with enhanced obligations the National Stock Exchange (NSE) issued a list of brokers designated qualified stock brokers (QSBs).
In India there are two famous stock exchanges is one is BSE Bombay stock exchange – Sensex which come into BSE index. Similarly, NSE national stock Exchange which index is Nifty.
The List of 15 stock brokers who get this identification of Qualified Stock Brokers from NSE.
- ZERODHA BROKING LIMITED
- 5paisa Capital
- HDFC Securities.
- ICICI Securities.
- Anand Rathi Shares
- Stockbroker
- ANGEL ONE LIMITED
- IIFL Securities
- Kotak Securities
- Motilal Oswal Financial Services.
- JAINAM BROKING LIMITED
- NEXTBILLION TECHNOLOGY PRIVATE LIMITED
- NUVAMA WEALTH AND INVESTMENT LIMITED.
- RKSV SECURITIES INDIA PRIVATE LIMITED
- SHAREKHAN LTD.
This list was announced by the direction of SEBI, which is a regulatory body of security and exchange.
Meaning of qualified Stock brokers in terms of SEBI. SEBI defines QSBS, as entities who, because of their size and scale of operations, can likely impact investors and the securities market as well as governance and service standards. These stock brokers cater to the needs of a large number of investors.
Why are QSB Important?
Due to their size and the trading volume into their platform with this there are multiple of investors as well as traders who invest into stocks through their platform and they’re large of amounts of money invested on there.
QSB occupies a significant position in the Indian securities market. The stock market activity is concentrated on these designed stock brokers. A large number of people open their Demat account with these 15 brokers.
In Case of failure of such stock, brokers have the potential to cause disruption in the services they provide to large numbers of investors, causing widespread impact in the securities market. This is to related to the Indian banks that get obligations of a systemically important bank( SIB) – are SBI, HDFC, and ICICI. In case if they fail then it impacts entire the economy of India.
How is QSB Designated?
So, the question over here is how the stock broker is designed, Are these brokers qualified stock brokers or not?
On the basis of parameters – a number of active clients and users, Total availability of assets of clients means if the user activates their account with a broker but it should invest and trade will see their trading size and volumes and end-of-day margin obligations. With all these parameters stock brokers have got the designation or identification of qualified stock broker QSBs.
The capital market regulator SEBI said it may include more stock brokers in a list of designated QSBs by considering additional parameters such as compliance, grievance redressal scores, and proprietary trading volumes. The scores are to be calculated on an annual basis (in the financial year) and the revised list of QSBs will be released jointly by stock exchanges in consultation with SEBI.
