Say, my friend is having some balance in his trading account (with zerodha).
I dont have sufficient funds to enter a position?
Is it possible that my friend could transfer some balance from his account to my account? (without transferring money via banks)
Can this be added as a feature? What could be the implications?
No, not possible. Withdraw first, then transfer.
YES, as long as you are transferring your money to my account. Reverse is NOT possible.
SEBI and Exchange regulations today mandate that the funds in the trading account has to come through the account holders bank account only. Brokers also have to document the proof that this bank account belongs to the person, hence the cancelled cheque leaf is asked while trading account opening.
Earlier, it was possible to deposit DD to a trading account, even that is not allowed today.
So no, there is no way funds in a trading account can be directly transferred to another trading account. It has to be first withdrawn by your friend, which has to be in turn transferred to your bank account, from where you transfer to the trading account.
It is currently not possible, I believe.
I would like to know what are all the problems that brokers would face?
If there is no issue for them, can this be added as a feature?
That was my primary intention.
If this feature is added in backoffice say, like withdrawal request we could initiate transfer request also, mentioning the client ID to which we need to transfer. In this case we could be avoiding payment gateway charges. Is it not?
Thanks for clarifying that!