Stock brokers in India deal in various stock exchanges. Two major stock exchanges are Bombay Stock Exchange - BSE and National Stock Exchange - NSE. Besides these big ones, stock brokers in India deal in following smaller exchanges like OTC Exchange of India and the exchanges in U.P., Jaipur etc.
While there are many exchanges based on regions in India and some that deal nationwide, the basic types of dealers are of three types. Before discussing that thought it is important to understand what a dealer does and why is he/she needed.
A dealer in essence is a regulated professional employed with a brokerage firm. These are middlemen between the investor who wishes to invest in various trading options and the stock market. Since it is not possible for the stock exchange to deal with each investor individually, without proper authorizations, thus stock brokers are required in India and all over the world to do the dealings. As said before, the stock brokers in India are of three types:
Discretionary Dealing: The broker estimates the investor's investment objectives and makes all decisions on investor's behalf.
Advisory Dealing: The broker advices the investor about various investment options but the final decision is made by the investor himself.
Execution Only: The broker gets all trading instructions from the investor and is only required to carry out the investor's instructions.
While there are many exchanges based on regions in India and some that deal nationwide, the basic types of dealers are of three types. Before discussing that thought it is important to understand what a dealer does and why is he/she needed.
A dealer in essence is a regulated professional employed with a brokerage firm. These are middlemen between the investor who wishes to invest in various trading options and the stock market. Since it is not possible for the stock exchange to deal with each investor individually, without proper authorizations, thus stock brokers are required in India and all over the world to do the dealings. As said before, the stock brokers in India are of three types:
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