A COMPARATIVE STUDY ON LEADING STOCK BROKING FIRMS

Abstract

An equity brokerage firm is an investment services organisation that is fundamentally involved in the
business of purchasing and selling equity and other financial securities for its customers in return for
a charge or commission. This business segment operates under close government regulations that aim to
secure the investing public. An equity brokerage firms may not open for business without filing for proper
enrolments and acquiring certain memberships. Anequity brokerage firms may concentrate on different
investment services and customers. It must also be able to provide extensive variety of security information
to customers for investment research and trade selections. As per Section 65(93) of Finance Act, 1994
“Stock-broker” means a person, who has either made an application for registration or is registered as an
equity broker, in accordance with the rules and directions made under the Securities and Exchange Board of
India Act, 1992. A retail brokerage firm serves only individual investors, whereas an institutional brokerage
firm has the capacity to handle large order flows from institutional investors such as mutual funds. The focus
of the research is to study the investor’s perception regarding investment in equity market and to analyse the
investor’s behaviour toward market trend on his investment. To do the comparison of broking firms in terms
of service provided by them to the investors.