Authorised Person on personal trading

[nithin]

@Karan23

Can an AP trade his own capital through client accounts ? is it legal or is it still in the grey ?

For e.g , a trader has 10 Lakhs of personal capital and places 2 trades per day (2 X 40 = Rs 80 brokerage /day)

So instead of trading 10L from his own personal account , he registers as an AP and brings on 20 accounts
( family and friends )
and spreads this 10L into 20 - 50K accounts.
Now placing 40 trades per day ( 2 X 20 ) and generating Rs 3200 brokerage .For which the AP well get 50% pass back.

Trading on others accounts isn’t allowed, even if you are an AP.

Check this

Trading with other people’s money

https://zerodha.com/z-connect/rainmatter/trading-with-other-peoples-money This post talks about how you can manage money for others legally and also some grey ways wealth management is done.

Trading with other people’s money

By the way it is your money why would you want to earn money as brokerage? You rather focus on making trading profits without generating too much brokerage right?