Under the SEBI Act, 1992, before a stock broker, merchant banker, sub-broker or other market intermediary commences business it must:

Section 12 of the SEBI Act, 1992, prohibits a stock broker, sub-broker, share transfer agent, banker to an issue, trustee of a trust deed, registrar to an issue, merchant banker, underwriter, portfolio manager or investment adviser, or any other intermediary associated with the securities market, from buying, selling or dealing in securities except after obtaining registration from the Securities and Exchange Board of India. Registration is the gateway to carrying on intermediary business, granted subject to fit-and-proper and operational conditions, and it may be suspended or cancelled for non-compliance. The Reserve Bank does not register market intermediaries, and recognition under the Securities Contracts (Regulation) Act concerns the stock exchanges themselves rather than individual brokers. This registration point was tested in the 2024 IBPS paper.