Forming A Prop Trading Firm (LLP)

[nithin]

@abbanerjee

The only legal way arround PMS is to get an investor advisor license and manage 100 demat acccounts via a AP terminal with 100 different bilateral agreements on fees. The challenge is compliance of recorded confirmations before each trade is executed.

@nithin: this is based on my understanding without any legal opinion. Will defer to your knowhow in this if this is indeed allowed as I think.

As long as you are getting a client to confirm before every trade and record it via voice as a proof, yeah this route can be taken. The challenge here though is that as an RIA, you need to charge your fees separately and collect it separately. Whereas in a PMS you charge it on the funds you already hold. We Indians are extremely finicky when paying a fees separately. Btw, managing 100 different portfolios and executing them separately while getting confirmations is almost an impossible task.