Can sub broker trade on behalf of clients?

However, there is no difference in the operative role of a sub-broker and that of an authorized person. A sub-broker acts on behalf of a trading member as an agent for assisting investors in dealing with securities. “No fresh registration shall be granted to any person as sub-broker.

Can a stock broker buy and sell stocks on your behalf?

Your broker cannot sell your securities without getting permission from you. A financial advisor needs the proper authorization to execute any transaction on your brokerage account. Whether it is buying a stock, selling securities, or moving money around, unauthorized trading is a very serious legal violation.

Can a sub broker trade for himself?

In the sub-broker trade, you have to pay a certain fee for membership to the stock exchange. Besides trading for the clients, the sub-broker can trade for himself also by using the individual client account. In simpler words, the answer to the question – Can a Sub broker trade for himself is YES!

Can broker sell my shares without my permission?

A brokerage is not allowed to buy stocks on your behalf without your written or oral consent. This is a rule by SEBI & the exchanges are authorized to monitor that it is being diligently followed by brokerages.

What is the difference between the broker and sub broker?

Broker Vs Sub-Broker Function: A stockbroker functions independently, while a sub-broker acts as an intermediary between the main stockbroker and its clients. These can provide access to a trading platform of a stock exchange by acting as an agent of the stockbroker.

Can a broker steal your shares?

While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.

Is sub-broker a member of stock exchange?

As per Regulation 2(1)(gc) of SEBI (Stock-Brokers and Sub-Brokers) Regulations, 1992 a “sub-broker” (SB) means any person not being a member of stock exchange who acts on behalf of a stock broker as an agent or otherwise for assisting the investors in buying, selling or dealing in securities through such stock brokers.

What is the difference between the broker and sub-broker?

Can a stock broker prevent you from selling?

If your broker sold securities out of your investment account without getting permission first, then your broker’s actions are not legal unless the transaction was made under certain conditions.

What are the functions of a sub broker?

Functions of sub-brokers include buying, selling, and dealing with securities and assisting stockbrokers in increasing their business volume. They build the business book of the stockbroker by bringing new investors and helping the existing clients to reinvest.