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    Financial Markets AND Financial Services: Chapter-31

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    Dipali Davda
    This document discusses the code of conduct for stock brokers. It outlines 20 points that stock brokers must follow, including honestly and promptly executing client orders, maintaining client confidentiality, disclosing if acting as a principal or agent, exercising reasonable care and diligence, maintaining high standards of integrity and honesty, and abiding by all rules and regulations of authorities like SEBI and the stock exchange. Stock brokers should prioritize clients' interests, not discriminate, maintain proper infrastructure, and not engage in unfair practices or spread rumors to manipulate the market.

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    Financial Markets AND Financial Services: Chapter-31

    Uploaded by

    Dipali Davda
    43 views7 pages
    This document discusses the code of conduct for stock brokers. It outlines 20 points that stock brokers must follow, including honestly and promptly executing client orders, maintaining client confidentiality, disclosing if acting as a principal or agent, exercising reasonable care and diligence, maintaining high standards of integrity and honesty, and abiding by all rules and regulations of authorities like SEBI and the stock exchange. Stock brokers should prioritize clients' interests, not discriminate, maintain proper infrastructure, and not engage in unfair practices or spread rumors to manipulate the market.

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    Ch-31

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    This document discusses the code of conduct for stock brokers. It outlines 20 points that stock brokers must follow, including honestly and promptly executing client orders, maintaining client confidentiality, disclosing if acting as a principal or agent, exercising reasonable care and diligence, maintaining high standards of integrity and honesty, and abiding by all rules and regulations of authorities like SEBI and the stock exchange. Stock brokers should prioritize clients' interests, not discriminate, maintain proper infrastructure, and not engage in unfair practices or spread rumors to manipulate the market.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    43 views7 pages

    Financial Markets AND Financial Services: Chapter-31

    Uploaded by

    Dipali Davda
    This document discusses the code of conduct for stock brokers. It outlines 20 points that stock brokers must follow, including honestly and promptly executing client orders, maintaining client confidentiality, disclosing if acting as a principal or agent, exercising reasonable care and diligence, maintaining high standards of integrity and honesty, and abiding by all rules and regulations of authorities like SEBI and the stock exchange. Stock brokers should prioritize clients' interests, not discriminate, maintain proper infrastructure, and not engage in unfair practices or spread rumors to manipulate the market.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 7

    FINANCIAL MARKETS AND FINANCIAL SERVICES

    CHAPTER-31 THE BROKERAGE SERVICES

    Chapter-31 The Brokerage Services

    Himalaya Publishing House

    Financial Markets and Financial Services Vasant Desai

    Chapter-31 The Brokerage Services

    Himalaya Publishing House

    Financial Markets and Financial Services Vasant Desai

    Chapter-31 The Brokerage Services

    Code of Conduct for Stock Brokers


    i. A stock broker must honestly and promptly execute all order for buying and selling of securities at the best possible market price. He must make prompt payment to his clients in the case of sales and prompt delivery in the case of purchases. ii. He should not discriminate small investors against big investors. iii. He must issue a contract note for all transactions as specified by the stock exchange without any delay. iv. He must maintain complete secrecy of his clients personal investments and other informations of a confidential nature. v. He should not induce or initiate purchases or sales just for the sake of his brokerage or commission. vi. He should not give any false or misleading information with a view to encouraging purchases or sales and thereby getting his commission. vii. He should not entertain those clients who have failed to carry out their commitments in respect of securities with other stock brokers. viii. The capacity in which he is acting must be duly informed to his client. In other words, he must disclose whether he is acting as a principal or as an agent. In all cases, he must give top priority to his clients interest.
    Himalaya Publishing House Financial Markets and Financial Services Vasant Desai

    Chapter-31 The Brokerage Services

    ix.

    He is not expected to render any investment advice except under those circumstances which warrant it. x. He must possess adequate infrastructure facilities and maintain proper staff to render prompt, efficient and fair services to his clients. xi. He should not advertise his business publicly except when it is permitted by the stock exchange. xii. He should not adopt any unfair practices with a view to attracting clients from other brokers. xiii. He should not knowingly and willfully deliver documents which constitute bad delivery. xiv. He should not fail to submit the necessary returns to the SEBI and the stock exchange as and when they have to be submitted as the statutory regulations. These returns should not contain any false or misleading information.

    Himalaya Publishing House

    Financial Markets and Financial Services Vasant Desai

    Chapter-31 The Brokerage Services

    xv.

    He must exercise reasonable care, diligence and skill in the discharge of his functions as a broker. xvi. He must maintain high standards of integrity and honesty, promptness and fairness in the conduct of all his business. xvii. Above all, he should not indulge in fraudulent or deceptive transactions or spread rumours with a view to creating a false market and making personal gains. xviii. He must abide by all the rules and regulations of the regulating authorities including the stock exchange. xix. He must maintain proper books of account, records and documents as required by the various regulating authorities. xx. He must produce the above books and records for inspection whenever an inspection is undertaken as per the provision of the SEBI Act.

    Himalaya Publishing House

    Financial Markets and Financial Services Vasant Desai

    Chapter-31 The Brokerage Services

    Himalaya Publishing House

    Financial Markets and Financial Services Vasant Desai

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