I want to know restrictions on trading for brokers for Intraday or short term basis.
The rules are the same, both for brokers and customers.
Which is the best way to manage your own fund.
If someone has large fund and cant make orders on intraday by himself and want to hire emoloyees to do that.
There are lots of restrictions for companies to do intraday trading or short term trading.
Do you think one should become broker to do this.
Broker can hire emoloyees to manage broker money. I mean place orders.
If it is only for your own account, become an authorized person with a broker who gives you dealing terminals. Get multiple dealing terminals, so multiple people can place orders on one account. Give this dealing terminal to the employees. This account can be in individual or partnership. If it is a pvt ltd, then it might need NBFC license. This is the easiest way to do this.
If private limited company do this and get NBFC license.
There will be any restriction for Intraday trading in cash segment.
Or any other requirements or restrictions ?
If you get NBFC license, a pvt ltd company can do this, as long as the money is your own. If you really wanted to take that route, it is better to just become a member of stock exchange.
@nithin does Zerodha gives this terminals , I want to hire two three traders for my account but I want to cap limit on those traders and also want to have full right to place/modify their orders and limits from one main account . How to do this. And I prefer pvt ltd company for above person for compliance reasons
No, we don’t give terminals.
Okay but are there any restriction for Intraday trading in cash segment for pvt ltd company.
Can NRI become promoter in this company. Because if someone is moving abroad they have to change trading account to Portfolio Investment Scheme.
And There are limit on investment in PIS account base on company paid up capital.
NRIs being shareholder in NBFC, I am not sure about the regulations around it. Maybe ask a CA.
Alternative Investments Fund is good to manage own money ?
Can AIF trade in equities cash segment on Intraday or short term basis ?
AIFs can do all types of trades. Minimum 20 crores to start a fund and Rs 1crore minimum per client.
I mean person can manage own money not others ??
At what stage incorporating it makes a sense. I mean how much should be my net worth whick will practically make sense . Second is it good idea to start AIF with own money and then use it to build a track record to manage outside money .
AIF makes sense only if you have traded and made money for yourself and have a track record to raise outside money. If you are trading for yourself, no point doing this.
If someone has large amount of capital and can not manage alone. AIF is good option because there are lots of restrictions in NBFC Private Limited companies.
And as you mentioned above AIF does not have restrictions on intraday and short term investment.
Can a person start AIF just manage own money ?