Why do I need to give my Income details while opening a trading A/c? And do I need to inform about my change of income status?
Income details are usually asked if a person is trading futures and options (both on equity and commodity exchanges). Futures and options are usually leveraged products, and exchanges guide brokers to ensure that the person trading on F&O has sufficient networth or income, to be able to trade on high risk products like these.
Yes, as and when your income status changes it is best to inform the broker.
Trading on Commodity Exchange does not require submission of Income proof.
I thought it does. If it doesn’t, I’m sure a lot more people would be trading commodities. Are you sure about this? I think they may want at least a self-declaration or a 6-month statement, no?
No Sir. Neither FMC nor MCX asks for an Income proof.
Is it possible, if the income is low say 6k per month, the application of trading account get rejected? Is there any minimum limit?
Also my cousin is doing her college and wants to open a trading account. But she is not having any income.
(no salary account, but she is having only savings bank account) Is it possible to show my salary details (like a sponsor) and open a trading account for her?
Update: MCX does ask for an income proof now.