Is it legal to trade for other people and then charge %age of profits?
To make it legal, you need to draw a legally binding contract written up and signed.
Its a matter of time, you will wipe out the account, they might turn bitter and sue your a**.
Thanks! Let’s say the account doesn’t get wiped out , how can the trader scale legitimately? Any sebi registration or any other compliance issues?
Apply for a PMS license with SEBI, if you want to publicly advertise your services or manage multiple client accounts.
It brings confidence for people approaching you for your services. Secondly, it avoids the situation where clients trying to exploit your weakness, knowing that you are operating without a PMS licence.
I don’t think that this is a very good idea. Why do you want to trade on behalf of your friend? If you want to trade for someone else, you should have a written agreement. I know that majority of the people will not agree with me but it is better for the future.