How to verify a stock broker in India
Five checks, all free, all on websites the broker does not control. Run them on us, and on anyone else asking for your PAN.
Why this matters more than it used to
Opening a trading account is now a ten-minute phone process. That convenience cuts both ways: it is also ten minutes to hand your PAN, Aadhaar and bank details to an entity you have not checked. Impersonation of real brokers is common, and so are platforms that look like brokers but are not registered at all.
The good news is that verification is genuinely easy. Every fact that matters is published by a regulator, an exchange, a depository or the Ministry of Corporate Affairs — none of whom are paid by the broker.
Step 1 — Get the legal entity name, not the brand name
Brand names are marketing. Registrations belong to legal entities. Before anything else, find the registered company name and the SEBI registration number. A legitimate broker publishes both, usually in the website footer and on a dedicated page.
If you cannot find a registration number on the website at all, you can stop here.
Step 2 — Look up the SEBI registration
Search the registration number in SEBI's intermediaries database. Check three things: the number exists, the entity name matches, and the registration is current rather than lapsed or cancelled.
Step 3 — Check exchange membership
A broker executing your trades on NSE or BSE must be a member of that exchange. Both publish searchable member directories showing the member code, the entity, and the segments they are permitted to operate in.
Pay attention to segments. A broker may be a member for equity but not for commodities. If someone is offering you a segment that does not appear against their name, ask why.
NSE member search · BSE member directory
Step 4 — Check the depository participant
Your shares are held in a demat account with CDSL or NSDL, not with the broker. The broker acts as a Depository Participant, or ties up with one. Look up the DP ID on the depository's own website.
This step is worth doing because it tells you where your shares actually sit. If a broker fails, securities in your demat account remain yours and remain with the depository.
Step 5 — Check the company itself
Search the CIN on the MCA portal for incorporation date, registered office and company status. A recently incorporated company is not automatically a problem — every firm was new once — but you should make that decision knowingly rather than assume a long history that is not there.
Three extra checks worth ninety seconds
- App developer name. On Google Play or the App Store, the developer listed should be the registered entity. A mismatch is serious.
- Named compliance officer. Registered brokers must publish one. If nobody will tell you who it is, that is an answer.
- Grievance path. A real broker will tell you how to escalate past them, to the exchange and to SEBI SCORES. A fraudulent one will not want you to know that route exists.
Warning signs that should stop you entirely
- Anyone asking for your OTP, password or PIN, for any stated reason
- Any promise of assured returns or guaranteed profits from trading
- A request to transfer funds to an individual's bank account, UPI ID or wallet
- An app sent to you as a file or a link rather than from an official store
- Pressure to decide today, or an offer that expires within hours
Apply this to us
Everything above is a test you can run on Trade Grow. We would rather you did.