SEBI Sub-Broker Certification Conditions

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What does SEBI check when considering an entity for the grant of registration as a stock broker?

Past experience in agriculture

Having a high turnover rate

Eligibility to be admitted as a member of a stock exchange (correct)

Good credit score

Which of the following is a necessary infrastructure requirement for an entity applying for registration as a stock broker?

Large advertising budget

Adequate office space, equipment, and manpower (correct)

Luxurious employee lounges

Extensive legal team

What kind of experience does SEBI look for in an entity applying for registration as a stock broker?

Experience in the hospitality industry

Experience in the business of buying, selling or dealing in securities (correct)

Experience in the automotive industry

Experience in the manufacturing sector

In relation to disciplinary proceedings, who can be involved that may impact an entity's application as a stock broker?

Partners, directors, or employees Signup and view all the answers

What are the entry/exit barriers to membership of NSE according to the text?

There are no entry/exit barriers Signup and view all the answers

How can one become a member of NSE?

By complying with the prescribed eligibility criteria Signup and view all the answers

What conditions must a sub-broker fulfill to receive a certificate from SEBI?

Paying fees, addressing investor complaints, obtaining permission for status changes, and getting written authorization from a stockbroker Signup and view all the answers

What action should a sub-broker take upon receiving an investor complaint according to SEBI regulations?

Address the complaint within one month and inform SEBI about the details of the complaint Signup and view all the answers

What is the consequence if a sub-broker fails to obtain prior permission from SEBI for a change in status or constitution?

Cannot continue buying, selling, or dealing in securities on any stock exchange Signup and view all the answers

When can a sub-broker start trading in their capacity after applying for registration with SEBI?

After getting registered with SEBI Signup and view all the answers

What may prevent a stock exchange from forwarding a sub-broker's application to SEBI for registration?

Dealing with fake, forged, stolen, or counterfeit shares and securities Signup and view all the answers

If a sub-broker wants to cancel their registration, what documents are they required to submit according to SEBI regulations?

Specific cancellation documents as per SEBI guidelines Signup and view all the answers

What is the purpose of the Issue of Capital and Disclosure Requirements (ICDR) Regulations 2009?

To regulate all disclosure norms regarding the issue of securities. Signup and view all the answers

What is a key requirement for a stockbroker as per SEBI regulations?

Holding a certificate of registration from SEBI. Signup and view all the answers

What is one condition that SEBI imposes on stockbrokers for granting them a certificate?

Abiding by the rules of the stock exchange they are a member of. Signup and view all the answers

Why is it necessary for a stockbroker to obtain permission from SEBI in case of any change in status or constitution?

To ensure regulatory compliance during operational changes. Signup and view all the answers

What role does SEBI expect stockbrokers to play regarding investor complaints?

Address grievances promptly and inform SEBI about complaints. Signup and view all the answers

In what year did SEBI issue the Stock Brokers and Sub-Brokers Regulations?

1992 Signup and view all the answers

SEBI Sub-Broker Certification Conditions

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