Trading should be done through a registered broker only

i.Difference between registered and un-registered brokers:
The brokers need to register themselves with SEBI and are called registered brokers. Any broker failing to comply with the above rule is known as un-registered broker.

ii.Trading through unregistered brokers:
You will be wholly and solely liable for any sort of trading done through an un-registered broker. It may lead to fraud and in any such situation no relief can be availed for the same from SEBI.

iii.Regulation:
As per SEBI regulations, only registered members can operate in the stock market. One can trade by executing a deal only through a registered broker of a recognized Stock Exchange.