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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@nithin @nithin is this the norm in other exchanges around the world that institution can manipulate what positions they show on market and hide their real position behind clearing member. Also can you show any official documents which highlights this process and does sebi actually knows about this manipulation
It’s not hiding or manipulation it’s just how the system is designed and how data is displayed.
For the public: Positions are shown aggregated under clearing member IDs.
For regulators: Complete client-level data is available. Nothing escapes their surveillance.
This is standard across all major global exchanges. SEBI has multiple circulars on risk management and reporting that mandate client-level position reporting to exchanges and regulators. This data isn’t made public for obvious reasons such as institutional privacy, competitive strategy, and surveillance effectiveness.
The framework is well-documented in SEBI’s master circulars on derivatives, position limit monitoring, and client collateral segregation.
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If sebi have all these documented then it seems they are also involved in manipulating markets , because limiting simple information like open interest leave retailers with no information at all of whats happening behind the scene. Hiding behind competitive edge and surveillance effectiveness is just their inefficiency and nothing else.
If sebi continues to do this then they should not show circular of 9 out of 10 traders loses money because information is money .
Regarding privacy who is asking institution to disclose their position in public but they should disclose it to exchange while placing order so that exchange can easily know what is the live open interest.
Where is the problem. Can you explain what is the real challenge in showing it live or maybe 10 mins delayed, this could make market more efficient .
The above reminds me of the following fable -
How much more clear can a regulator make it
that certain markets and instruments are not optimal for the retail trader
that typically lacks the necessary means (information, time, tools, capital, …)
to participate in it effectively! 
Based on this thread, it appears that the messaging needs to be a lot more obvious/explicit.
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