Meanwhile, found this previous post with few details on this aspect,
including what is permitted/prohibihted for such an entity
(eg. one cannot actively seek new investors/capital in the business promising returns from trading the markets).
Financial activity as principal business is when
a company’s financial assets constitute more than 50 per cent of the total assets
(netted off by intangible assets) and
income from financial assets constitute more than 50 per cent of the gross income.
A company which fulfils both these criteria needs to get registered as NBFC with the Reserve Bank.
The same “50-50 test” is called out in few other other articles on this topic online [1] [2] [3].
If you possess a consistently profitable trading strategy, a logical next step is to approach established trading firms. These firms are often seeking talented traders and may provide capital, thereby eliminating the burden of personal loans and repayment schedules. This path also offers invaluable experience in managing significant sums of money, which operates on an entirely different level compared to trading a small personal account. Success in this environment could eventually provide the foundation and capital to start your own firm.
there are many hedge funds , family offices, AMCs, investment banks & prop trading desks. You can approach them with 3 months pnls as well , i approached with a loss making account yet got a chance to work and learn using bootcamps and internships. few top firms like da vinci , optiver, Barclays, dolat, etc . you can send your resume. but remember as trading is the hardest thing in this planet to make easy money , getting in to on of those is also very hard but Ur capital (i mean ur family’s savings lol) is safe.
A key thing to remember in your search is that legitimate trading firms never ask for any kind of money or security deposit. Be very careful, as Tier-1 firms are extremely difficult to get into, and the pressure to find an opportunity can make you vulnerable to scams. The easiest red flag to spot is if a company requests payment.
The best part of this process is that researching these firms will teach you the essential concepts required for professional trading and investing. It’s a great learning experience in itself.
I’ve already interviewed with firms like Jane Street, Optiver, guru99,etc. While I didn’t succeed at Optiver this time, their feedback was very helpful, and I plan to reapply in seven months. I’ve attached their reply as an example. Every one will give you feedbacks so that you can improve.
