Broker norms refer to the rules, regulations, and ethical standards that govern the activities of stockbrokers, sub-brokers, and brokerage firms in financial markets. These norms are established by regulatory authorities such as SEBI (Securities and Exchange Board of India) to ensure transparency, fairness, and investor protection in trading and investment practices.

A broker acts as an intermediary between investors and the stock exchange, facilitating the buying and selling of securities like shares, commodities, and currencies. According to SEBI norms, every broker must be registered, maintain proper records of all client transactions, and follow strict Know Your Customer (KYC) and Anti-Money Laundering (AML) guidelines. Brokers are also required to segregate client funds from their own accounts to prevent misuse.

Transparency in brokerage charges, margin requirements, and trade execution is a core part of broker norms. Ethical conduct is equally important — brokers must avoid misleading advice, ensure fair dealing, and maintain confidentiality of client information. Regular audits and compliance checks help ensure adherence to these regulations.

In essence, broker norms create a disciplined trading environment, safeguard investor interests, and maintain integrity within the financial markets, promoting trust and stability across all trading activities.