I am not an AP for any brokerage house. And, if I understand it right, SEBI has already discontinued or something the AP route. Now one has to be sub-broker with some financial targets, meaning financial requirements. And I don’t intend to invest anything deep.
I know about satta and dabba, why would I let that happen, especially in present scenario where IT, ED and SEBI are very active in busting these kind of activities. I am seriously not looking to get into legal trouble, that’s why seeking advice. This is a proposed business, so I would certainly learn about any and all kinds of legalities and possibilities before actually venturing into this.
As said, financial assistance is only to get people from paper trading to real trading. Maximum anyone would be able to buy is not more than 10 stocks of any company that too below CMP of 100 or less.
This is just to encourage people to get their hands dirty and learn to control their fear and greed while trading. This can be learned only by real practice and not through paper trading.
When I had opened an account with a particular brokerage house, a few years back, they had a classroom program for learning to trade in the market. After the end of all learning sessions, they provided assistance to cover losses while trading in the live market. Upto a certain level only, but they did provide this. This brokerage house is one of the top 5 in India. If it could, why I can’t.
Also, another brokerage house offered to give me 2 shares of a particular scrip without me paying any money for it. Infact, I was told that I could sell it or keep it as I wished. I kept it as I didn’t need the money and to see how it goes in the long run.
My offer is only to encourage learning and nothing else. In my approach, I don’t teach them anything, but let them learn by themselves, by learning from their mistakes. What is wrong in this?