What Are The Legal Requirements Of Share Market Franchise In India?

If you have ever invested in the stock market, you have most likely heard of exchanges and brokers. However, what exactly is a sub-broker?

The Securities and Exchange Board of India (SEBI) has a set of norms that must be followed by all financial institutions, including banks. Before being allowed to trade in securities, SEBI mandates that all Sub-Brokers obtain a Certificate of Registration. The Securities and Exchange Board of India (SEBI) issued a warning that no Trading Member should engage in business with a Sub-Broker who is not registered with the regulator. The Trading Member is required to verify that his customers are not working in the capacity of Sub-Brokers unless his clients are already registered with SEBI as Sub-Brokers.


  • SEBI in the stock market: characteristics of the organization –
  1. The roles played by protection –

The Securities and Exchange Board of India (SEBI) is responsible for these duties to safeguard the interests of investors and financial institutions. Protective functions include the detection of price manipulation, the prevention of insider trading, the promotion of fair trading practices, investor education, and the prohibition of acts that are unfair to trade.

  1. The roles played by regulation –

As part of its regulatory duties, SEBI monitors the activities of the many intermediaries that operate in the share market franchise India . The processes of mergers, amalgamations, and takeovers between firms are all subject to regulation.

In addition, SEBI conducts audits and inspections of stock exchanges. As a registrar, it is used by many parties, including brokers, sub-brokers, merchant bankers, and others. The participants in the capital markets are required to pay fees to SEBI. In addition to regulating intermediaries, they have authority over credit rating companies.

  1. The roles played by development –

As part of its development activities, SEBI provides training for intermediaries. In addition to promoting honest business practices, SEBI works to eradicate unethical business activities. 

  • Extra material and information –

Both beginning a new company from scratch and purchasing an existing franchise come with their own individual sets of benefits and drawbacks. Beginning a franchise business may be highly beneficial if you are an entrepreneur who is willing to follow a system and has the financial resources to do so. When you become a franchisee, you have the opportunity to capitalize on the established brand name, reputation, and business infrastructure.

The franchising company will be in charge of making all of the decisions about the operation of the franchise. You just need to pay attention and act by what they instruct you to do.

  • Your level of financial success is dependent on a variety of factors –

Do as much research as you can to learn how the franchising process works so that you will be prepared for what to anticipate.

Take into consideration how well you can interact with people. Are you able to communicate with the personnel as well as the customers without any difficulty? In addition to having a lot of energy, you need to have a lot of self-control and pay a lot of attention to the little things.

  • Conclusion –

The majority of individuals have the dream of one day running their own business. Start-ups of today are eager to try new things and learn more about business, and  franchising enables them to do both by providing a business model including open demat account that is both innovative and tested. You need to be knowledgeable about a few topics before launching a franchise business.

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