Most retail brokerage firms are self clearing, they don’t use professional clearing services. Even if they use 3rd party clearing, the funds lying at clearing goes through the broking company and not from the customer directly. Hence there is no concept of confirming a trade, the positions crystallize automatically and CM can’t reject the order.
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Why will broker send stock idea ? Isn’t institution do research ?
Hmm… didn’t get your question. Can you be more elaborate?
Now when i see oi in kite through sensibull and in nse website option chain i see a difference. Why is that?
This thread answers that query only, you can check first few responses.
Most retail brokerage firms are self clearing, they don’t use professional clearing services.
Is there any specific reason the institutional investors don’t use this way? Why are they using separate members for trading and clearing instead of a broker who does both trading and clearing?
Institutional customers keep their funds and securities with a custodian. They then use multiple brokers to execute trades and not a single one like retail customers. This gives them an option to shift between brokers based on cost or based on who offers better research/advice, and etc.
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Why do brokers offer advice/research to institutions ? Does institutions place their orders based on brokers advice?
I thought institution people do the research about companies and then they invest.
Institutions usually have to execute large blocks of stocks, so they usually will need the help of the broker for this. And yes, they also take research help and also all the chatter about stocks in the broking industry.
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Does this really help or just increase the noise.
May be or may not, I don’t think there is one answer.
Yes…
why do institutions need broker , and pay them the brokerage/fees ?
Institutions have the money power , man power , knowledge , expertise and experience . They can opt for the alpha membership of the exchange . Thus saving lakhs of rupees which otherwise they would be paying to the broker !!!
@nithin such interactions by you and team are a major major incentive to keep using Zerodha. Thanks a lot 
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