MEANING

Stock Broking is a activity, job, business or profession, usually associated with a brokerage firm or broker-dealer, involving of buying and selling of shares and other securities for both retail and institutional clients, through a stock exchange or over the counter, in return for a fee or commission. Stock Broker is who has either made an application for registration or is registered as a stockbroker in accordance with the rules and regulations made under the Securities and Exchange Board of Indian Act, 1992.

SEBI GUIDELINES
The SEBI registration of stock brokers is conditional in nature. According to regulations of SEBI the following are the conditions to issue certificate of registration to the brokers.

He holds the membership of any stock exchange.

He shall abide by the rules, regulations and byelaws of the stock exchanges in which he is a member. In case of any change in the status, he shall obtain prior permission of SEBI to continue in any stock exchange.

SEBI GUIDELINES (CONT..)

He shall pay the amount of fees for registration in the prescribed manner. He Shall take adequate steps for redressal of grievances of the investors and keep SEBI informed it.

Fund Based Services

In fund-based services the firm raises funds through the form of debt, equity, deposits and the bank investments in securities or lending's for the capital needs of a firm.
The fund based income is that revenue gained from interest, lease rental, and as well as income from capital market investments. Some of the fund-based services are as follows: a) Leasing and Hire Purchase b) Housing Finance d) Venture Capital e) Factoring f) Forfeiting g) Bill Discounting

Fee Based Services

Fee based financial services are those services where financial institutions operate in specialized fields to earn a substantial income.

The income is in the form of fees or dividends or brokerage on operations. The major fee based financial services are as follow: a) Issue Management b) Corporate Advisory Services c) Credit Rating d) Mutual Funds e) Asset Securitization f) Stock Broking Services

Fund Based Services

It is long term in nature. This involves a lot of risk to be taken. In fund based business, money in the form of cash is involved in the transaction. It does not requires expertise as much as fee based services to offer fund-based services.

Fee Based Services

It is short or medium term in nature. The level of risk taken is very low or there is no risk involved. In case of fee based business no money is directly involved. It requires a lot of expertise on the part of a financial company to offer such fee-based services.

Fund based means dealing with actual cash like cash credits, term loan.

Fee based means providing only services for which they will get some income.