Proprietary investing and trading by RIA/RA

General
1

Hey guys,

I had a question regarding proprietary investing/trading by Research Analyst Firms and RIA firms and was hoping if any of you could shed some light on the topic.

If a RA/RIA firm is investing it’s own money in stocks and derivatives apart from imparting it’s research analysis does it come under the purview of RBI as an NBFC if it’s financial assets constitute more than 50% of it’s assets? Or does it come under SEBI, as SEBI regulates RA/RIA in India and not the RBI.

Any solutions would be helpful. @nithin could you shed some light on the same if possible. Thanks

2

Only a stock broking license allows you to do prop trading as a company without needing an NBFC license. An RA/RIA license doesn’t cover it. I had written about this before on a similar topic.

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3

Dear @nithin , may I know the requirements of stock broking license, is it possible for anyone tie up with any brokerage firm and got stock broking license, without taking a expensive membership of nse & bse.
Thanks

4

You can’t tie up with a brokerage firm and get a stock broking license. You need to atleast take an alpha membership with the exchanges and need to set up a trading and backoffice platform. I have answered this before.

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