Trading F&O via LLC or Pvt Ltd

General
269

Hi Nithin,

If I may ask a follow up question on the AIF cat 3 structure. What is the maximum tenure prescribed by SEBI in order to achieve the minimum corpus of INR 20 cr? @nithin

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The first close for all AIFs if 12 months from SEBI taking PPM (Private Placement Memorandum) on record and giving their consent for it. Even in the case of open ended Cat 3 AIF, the initial offer period is also 12 months. And if the first close does not happen in 12 months, then the PPM has to filed again with SEBI for comments, along with repayment of fees.

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271

Hi @nithin @TAXIQ.IN @Ca_Omprakash_Jain @Jason_Castelino @cheko @Quicko

I went through the entire thread in details, each & every line, and my primary 3 queries are ?

  1. Can I open a Partnership firm with a primary objective as Trading in F&O or does the 50:50 rule of RBI applies to Partnership firm as well? (100% Income will only be from F&O Trading)

  2. Zerodha API allows you to punch in 200 Orders / Min (If we take example of Nifty Options then 200 * 1800 Qty = 3.6 Lac Qtys / Min) | Can we open 10 different Partnership Firms & open 10 Different Trading Accs with Zerodha (In all the 10 Different Partnership Firms the 2 Partners will be the same) so that we can lease 10 Zerodha APIs & punch 200 * 10 = 2000 Orders per Min ?

  3. If the above is not feasible then what is the best solution to punch 36 Lakh - 54 Lakh Nifty Option Qtys per Min ?

Thanks,
Awaiting Your Reply.

272

  1. Primary objective as trading in F&O is not possible. Check this https://www.winmansoftware.com/files/Business_Profession_Nature.pdf
    The RBI rule doesn’t apply to partnerships.

  2. We wouldn’t get to know, so technically, you can, but I’d advise not to. The APIs are meant for retail trading and this would be like abusing the trading system. The new algo restrictions would most likely also mean you are not able to do that.

  3. Hmmm… Best is to get your algo approved and do it as part of that. We don’t get into that aspect of the business, i.e catering to algo/HFT customers. There are brokers especially for that purpose.

2 Likes
273

can i do options buying using 200cr if i want to but nifty 50 option of 200cr capital can i do it using zerodha or i need some special permission for doing that trade as an individual

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No. Not possible. You need to first have 200crore.

3 Likes
275

Did you try the better kite script? It is executed from browser. I am not sure, in one account (PAN) you will be able to punch this much quantity. 500cr premium value or 15% OI might kick in. Your premium should be very low

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Can you name the brokers who are there to cater the algo or HFT for players less dhan 20 cr capital

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The values are now 7500 Cr or 15%

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Hmm… 200cr of options premium is potentially a lot :slight_smile: You can do it with us, using CP code. You can ping (direct message) @mohitmehra for this.

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Ah, I don’t know. But there are small shops who might be able to do this.

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Which broker?

Can you guys become that broker also, please?

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You will have to search for the broker.

We don’t intend to get into that space. Too much compliance and regulatory risk.