Who is a Stock Broker?
A stock broker is a person or entity, which is a member of a stock exchange. A stock broker acts as a facilitator to carry out transactions of investors on a stock exchange. Thus if you want to buy say 100 shares of a company XYZ (which is listed on say National Stock Exchange) in the secondary securities market, he would have to go through a stock broker registered in NSE to carry out his transactions on National Stock exchange.

Whether stock brokers are governed by any Rules and Regulations?
Stock brokers are governed by SEBI Act, 1992, Securities Contracts (Regulation) Act, 1956, Securities and Exchange Board of India [SEBI (Stock brokers and Sub brokers) Rules and Regulations, 1992], Rules, Regulations and Bye laws of stock exchange of which he is a member as well as various directives of SEBI and stock exchange issued from time to time.

What are the documents to be signed with stock broker?
Before start of trading with a stock broker, you are required to furnish your details such as name, address, proof of address, etc. and execute a broker client agreement. You are also entitled to a document called Risk Disclosure Document, which would give you a fair idea about the risks associated with securities market. Please go through all these documents carefully.

What to check while registering with a stock broker?
Every stock broker is required to be a member of a stock exchange as well as registered with SEBI. Examine the SEBI registration number and other relevant details can be found out from the registration certificate issued by SEBI.

Indian share market is likely to open flat amid mixed cues from the global markets. Nonetheless, the market may show volatility on account of alternate bouts of buying and profit taking. According to provisional data, foreign funds bought shares worth Rs.285 crore on a net basis Monday, while domestic institutional investors were net sellers for Rs.46 crore.
Overnight, the US stock markets closed little changed as investors awaited progress on the U.S. bank’s rescue plan after U.S. Treasury Secretary Timothy Geithner postponed the decision by one day until Tuesday. Additionally, traders were anxious as the U.S. economic stimulus package faced hurdles in the Senate. The Nasdaq Composite index slipped 0.01% and the Dow Jones Industrial Average shed 0.12%, while the S&P 500 index ended up 0.15%.

The Indian ADRs also closed mixed. MTNL, Wipro and Satyam Computers closed lower, while the others finished on a positive note.

The rupee settled at Rs.48.57/58 against the dollar on Monday, 0.2% stronger than its previous close, helped by a rally in the stock market, dollar selling by banks and hopes about further capital inflows from foreign funds after SEBI data showed that FII’s have been buying shares over the past few sessions.