NISM Series 7 Securities Operations & Risk Management | NISM VII Course | NISM SORM Course - Who is a Stock Broker / Share Broker ?

Stock Broker / Share Broker Stock Broker is a Trading member of a Stock Exchange. He may also be a Member of Depository and clearing corporations. Membership in Clearing Corporation might be taken in the name of a subsidiary / related company. Trading member means a member of a Stock Exchange and Sub-broker means any person not being a member of Stock Exchange who acts on behalf of a trading member as an agent or otherwise for assisting the investors in buying, selling or dealing in securities through such trading members. Trading members can be individuals (sole proprietor), Partnership Firms, Corporates and Banks A Clearing Corporation / Agency is a part of an exchange or it can also be a separate entity, which performs three main functions, namely, clearing and settling all transactions executed in the stock market, i.e. completes the process of receiving and delivering shares/funds to the buyers and sellers in the market, providing financial guarantee for all transactions executed on the exchange and providing risk management functions. This process is called novation. Anyone who has taken membership from Clearing Corporation is called as a Clearing Member. Depository and Depository Participants (DPs) There are two Depositories in India, Central Depository Services Limited (CDSL) and National Securities Depository Limited (NSDL), which were established under the Depositories Act, for the purpose of facilitating dematerialization of securities and assisting in trading of securities in the demat form. The Depository provides its services to clients through its agents called depository participants (DPs). NISM Mock Tests - https://modelexam.in/nism-exams/nism-mock-test.html NISM Study Material - https://modelexam.in/nism-exams/nism-study-material.html NISM 7 SORM Exam Preparation - https://modelexam.in/nism-exams/nism-series-7-sorm.html