Establishes SEBI’s authority to regulate the securities market.

Grants SEBI power to register, regulate, and take action against stock brokers.

Governs stock exchanges and the listing of securities.

Defines rules for contracts in securities and regulates trading practices.

Covers registration, capital adequacy, compliance requirements, and obligations of stock brokers.

Mandates brokers to adhere to ethical trading practices and maintain client funds separately.

Prohibits insider trading, price manipulation, and fraudulent activities in the stock market.

Requires stock brokers giving investment advice to register as investment advisers.

Ensures disclosure of risks and conflicts of interest to clients.

Regulates brokers acting as intermediaries between investors and depositories (NSDL, CDSL).

Mandates brokers to perform KYC (Know Your Customer) checks and report suspicious transactions to the Financial Intelligence Unit (FIU).8. The Companies Act, 2013 (if operating as a company)

Governs corporate compliance, financial reporting, and governance for brokerage firms.

Stock brokers must comply with tax regulations, including TDS on transactions, GST on brokerage services, and income tax on earnings.