Trading using family member's account

#1

Hi,

I am interested in trading in the F&O segment of NSE. However, due to trading restrictions placed by my employer, I am unable to do so. My question is: Can I trade using my family member’s zerodha account?

The steps are mentioned below:

  1. Transfer money from my bank account to my family member’s bank account.
  2. Transfer funds from family member’s bank account to his/her zerodha account.
  3. Trade using his/her account.
  4. Transfer profits (if any) to family member’s bank account.
  5. Tranfer money from family member’s bank account to my bank account.

There are no fees involved here; just some informal profit sharing agreement with family member.

Please let me know if this is legal and allowed by SEBI or if there are any restrictions/complications in this regard.

#2

Yes, it’s all kosher on paper unless you are feeling the emotional guilt of doing what you are otherwise not allowed to do.

The complications arise only when your employer catches you operating a F&O advisory betting ring inside his premises during working hours.

#3

Certainly you can use your family member account for trading, but just keep it well secret as we dont know what might actually happen if your employer realise what you are actually doing. It is on you to decide if you can make profits which are higher than risk of losing a job