Stock tips Legal registeration process

Stocks
1

My friend had done about 7 courses on trading from different mentors in the world , in last year.
and hehas been trading for a while …

Many people ask him for tips, but he wants to be certified and do it legally

He wanted

to start giving stock tips,
help other balance their portfolios , etc
give long term and short term tips

1.What is the legal certifications needed ?
2.What are the different types of certification avalable ??
3.who gives these certifications ??
4.He was actually a software engiineer education background . What can he doto get certification??

WIll someone please asnwer my 4 question…??

2

If you want to give investment advise to others, you need to be a SEBI Registered Investment Advisor (RIA).
Sebi website had details on what is needed to be done.

NiSM offers certification on same.

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  1. If the advice is common to all (like trading tips) you can become RA (Research Analyst). You can complete Nism RA certification and get it registered under SEBI.

  2. If the advise is unique to each client (like financial planning etc) you can become RIA (Registered Investment Advisor). Need to complete Nism Xa and Xb certification and get it registered with SEBI.

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4

@gowtham4 and @Akash_Shah I have another question …
1 Can i execute trades for m y aunties and uncles …?
they want to invest …
They are ready to give me the password to their accounts and they are telling me to handle their Kite account …Is it legal for me to do so ??
They are willfully ready to pay me a small amount to handle their accounts too
They are my close relatives .(mom’s brothers and sisters )
2 Is there any law that i could break if i execute trades for them and take a small pay to mantain their accounts …

5

It is not legal to handle others account unless you are a sub broker (even that has many regulations currently)

Kindly check out this article - Trading with other people’s money – Z-Connect by Zerodha Z-Connect by Zerodha

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6

Maybe u would like to follow this thread…

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7

I won’t go into legality as other people have rightly pointed it out.

Only to add, I would seriously advice against managing your relatives money and using them to trade. While you may be an excellent trader, a time will come when you will loose money on trades (not if, but when), and if it is substantial loss, that will sour the relationship too. And along with financial toll, that will add emotional toll on you.

Better advise them to use a professional money manager, who can understand their risk profile and provide investment advises accordingly.

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