What are the order directing options available for Indian brokers? Do brokers cheat their customers?

Directing the orders by brokers to the exchange (NSE & BSE) and registered market makers of these exchanges are legitimate methods. I think the internalisation of orders (brokers fulfilling orders from their reserves and making small profits from the spread) is not acceptable in India. Mr. Nithin tweeted that payment for order flow is not legal, so that is clear.

I want to know

  1. Is ECN ( Electronic communication network) legal in India?
  2. Are these orders directed to exchanges directly by Indian Brokers (Found nothing from any brokers nor SEBI) or do they get the option to redirect order flow for incentives?
  3. Is internalisation really legal in India and to what extent?

I think you talking about Money for order flow :thinking: