Licensing Requirement

Is there in any licensing requirement in stock trading(not investing), trade license or other. I know income will be taxed as stcg or ltcg. As per the business definition under head income from business or profession, stock trading and speculation comes under business if it is done on regular or day to day basis. Though, I understand that in stock trading , I am not buying and selling any goods or service, and as it’s income comes under the head income from capital gain, still I want to know is there any licensing requirement?

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Hi @dibmon2012 ,

If you are trading with your own capital you don’t need to have any license. All you need is trading account (like Zerodha), DEMAT account (from NSDL/CDSL) and a bank account to fund the trading account. That’s it!

However, if you are trading with other’s money (like fund manager role), that’s an entirely different issue.


A must read on taxation for traders:

As far as I know, there’s the aspect of taxation. But few people talk about it, I don’t know why. I think there is more information in the introduction and rules.