The primary job of a broker is to execute transactions on behalf of the clients. There are some brokers who run what is called a Proprietary Book. Here the broker takes buy and sell positions in his own account using his own money. This is permitted by SEBI. In case you are giving money to your broker to handle, ensure that the broker has a PMS (Portfolio Management Service) license. Only brokers with a PMS license can manage money on behalf of clients.

If you broker informally assures you returns and agrees to manage your money then don’t fall for that trap. Brokers are not supposed to manage money and are only supposed to execute contracts on behalf and on instructions from the client.