how to legally manage money for 4-5 people? i want to invest monye of only about 4-5 prople in the stock market. how can i do so legally? can i do it from home?
You need to get a PMS licence - http://www.sebi.gov.in/sebi_data/attachdocs/1483590008700.pdf without which it would be deemed illegal.
Bro if you are an expert in managing money me ready to put money. me need to recover some losses. ur contact?
no bro, i don’t have a PMS licnece… hence i cannot manage ur money. sorry
i am good at investments, but bad at day/short term trading. therefore without knowing facts don’t accuse. be astonished at how u assume things and how ur whole mindset is a scamming u. kindly refrain from replying to my posts as there r more productive things to do than just read ur baseless comments.
spend time learning some English… ur comment has a line’me ready to put money’ is hilarious.
"be astonished at how u assume things and how ur whole mindset is a scamming u. " - you are telling this to urself or me?. I didnot assume anything. I read ur earlier replies. Chill Bro.
read my post again… don’t assume things and stop replying. if u think you are very talented then share your trading strategy with results…
u assumed that i am bad with investing and cannot manage money and that i am a scammer… and u r telling me u did not assume things … i am astonished at ur baseless thoughts
earlier posts were on trading and not investing… managing money does not mean trading fyi
u felt bad… i changed the harsh words. trading n investing done in the stockmarket na bro.
i request you to kindly not to come to a conclusion by reading just one post. kindly read my other posts also and understand the context and then defame if deemed fit. anyway i am not replying further. i know that i am not a scammer. there will be people who will suck the energy out in all walks of life for no reason, but i have decided not to play the victim. may u and all those reading this prosper.
@nithin if someone offers me his login credentials to his trading account and I maintain a proof that he himself had provided it then would it be considered legal to trade in his account and then take profit share in agreed manner.
It isn’t legal to manage money this way.
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So apart from AIF3 is there any way to manage money if not for everyone then may be there could be structure to manage ones family money. How did you managed money before starting brokerage ,was it through sub-broker route and is it still feasible in starting days as getting AIF license and compliance’s in early days very difficult.
These regulations have gotten really strict now. Yeah, back then I was a sub-broker.
There are customers who share login/pwds with third party, it is kind of grey. What is not allowed is for you to charge a profit sharing fees - this is specifically banned by SEBI for anyone who is not registered.
Best route is to become an RIA, if you want to proceed with this legally. Every time executing a trade in a client account, get a confirmation on phone/email, it will cover you from any issues in future.
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Yes.
Mandatory compliances (variable in nature) are real headaches (cash & time draining) to start & run a business in India. Regulators are firing cannons to kill mosquitoes. Only sole proprietorship (high risk) way seems quite OK for tiny businesses.
Well, the only way you can legally manage other peoples money is if you are certified. It means that you need to have a license first. You know like it is peoples money after all. If you lose it then there has ti be assurance that you will return what you have lost. Also you have to be of legal age. I cannot say how olfd that is because being 18 is not enough. You have to be in that age that shows you are capable. it will be easier for you to get a license if you are older. Then again, the fact that you are asking this question to us means that you are not in the know of what needs to be done. This clearly shows that you are not ready to manage other peoples money. I hope that you are not a scammer because you have some signs. Show the people that you can be trusted then get a PMS license.
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@nithin lets take a hypothetical example , suppose zerodha xyz ltd. is a prop firm , now it gives me say 1 crore to manage and execute trades on markets and gives me terminal access or whatever for this and we make arrangement to share profits and losses in 50-50. That is both profit and loss , so is it legal and fully compliance since broker is extending us money to make transaction and not general public.
The prop firm isn’t really giving you money, it is allowing you to trade on their account with a profit sharing deal. This isn’t a legal issue. This is a very common arrangement in many prop shops.
Thanks , that was what i wanted to ask , btw would this require any sort of license since it would be professional type of deal/relationship and not necessorily employer-employee relation.
Just a professional relationship like a doctor, lawyer, advisor, etc. No license needed. But I guess you know that the prop firm will need to be a brokerage firm, NBFC, Hedge fund, etc.
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How to start prop firm as Private limited company ? Without NBFC license.