Document background
The Broker Engagement Letter is a fundamental document used in the Indian financial services industry to formalize the relationship between a securities broker and their clients. This document is essential when establishing new brokerage relationships and must comply with the Securities and Exchange Board of India (SEBI) regulations, the Indian Contract Act, and other applicable financial services laws. The letter typically includes detailed service descriptions, fee structures, risk disclosures, and compliance requirements. It's particularly important in India's highly regulated securities market where clear documentation of the broker-client relationship is mandatory. The document serves both as a legal agreement and a regulatory compliance tool, ensuring that all aspects of the brokerage relationship are clearly defined and documented as per Indian law.
