Managing different accounts under one id - possible?

[DSM]

What is the best way to manage various individual accounts to be operated under one login-id.? It would be like a sub-broker managing different client account, where trades can be conducted on behalf of different individuals. Want this facility from a discount broker, as want to manage my family accounts with one login id. What is the best way to do this? Appreciate some feedback on this. Thanks.

 

[Smart_trade]

What is the best way to manage various individual accounts to be operated under one login-id.? It would be like a sub-broker managing different client account, where trades can be conducted on behalf of different individuals. Want this facility from a discount broker, as want to manage my family accounts with one login id. What is the best way to do this? Appreciate some feedback on this. Thanks.

For this you have to be sub-broker ( this is in case of BSE/NSE cash ) or Authorised Person ( this is in case of F &O) and have few clients mapped under you. But this will require SEBI registration, payment of sub-broker fees , acceptance by main broker and also you will come under inspection /and other regulations of the broker,The Exchange, SEBI etc. It will need NCFM exam certificate also.

If you are managing trades/money for few family members/close relatives then it is ok but if doing for public, it is illegal unless you have portfolio managers registration from SEBI ( this needs large networth of some 50 Cr ). If things go bad and someone complains to SEBI, your main broker and you will come under serious trouble. Many are doing it but the problem comes only when things go sour. Cautioning because I know many cases where police went after such money managers and they have to run away to save police harrassment.Police considers it as cheating under section 420 of IPC and is a criminal offence.

Smart_trade

 

[sibu3168]

In my view, contact your broker & apply for a franchise through him, in that way you will get a log-in id & it is also very cost effective.

 

[DSM]

Thanks ST for the comprehensive response. I have always shied away from managing money even for my friends, as I am happy trading for myself, and do not want to be answerable to anybody else or spoil the relationship (money usually does in my view) However, was wondering, since am suggesting trades to those in the family, who are not always in front of the terminal, and hence the query. Thanks for your views - much appreciated.

For this you have to be sub-broker ( this is in case of BSE/NSE cash ) or Authorised Person ( this is in case of F &O) and have few clients mapped under you. But this will require SEBI registration, payment of sub-broker fees , acceptance by main broker and also you will come under inspection /and other regulations of the broker,The Exchange, SEBI etc. It will need NCFM exam certificate also.

If you are managing trades/money for few family members/close relatives then it is ok but if doing for public, it is illegal unless you have portfolio managers registration from SEBI ( this needs large networth of some 50 Cr ). If things go bad and someone complains to SEBI, your main broker and you will come under serious trouble. Many are doing it but the problem comes only when things go sour. Cautioning because I know many cases where police went after such money managers and they have to run away to save police harrassment.Police considers it as cheating under section 420 of IPC and is a criminal offence.

Smart_trade

 

[DSM]

Thanks Sibu, I will speak to my broker, but do not want to get into legal issues or paperwork for only trying to help family folks. Will see how practical this is, else, else will let things be as is. Appreciate your views.

In my view, contact your broker & apply for a franchise through him, in that way you will get a log-in id & it is also very cost effective.

 

[sibu3168]

Thanks Sibu, I will speak to my broker, but do not want to get into legal issues or paperwork for only trying to help family folks. Will see how practical this is, else, else will let things be as is. Appreciate your views.

There is no paperwork. Everything will be done by your broker. Only thing you have to do is either clear NCFM exam. or arrange a NCFM certificate for the same. Otherwise, your broker will charge for the same. It will be 750/--1000/- per certificate per month.

 

[DSM]

Thank you Sibu. If it is only a question of NCFM exam, should not be a problem. There seems to be a way ahead.... Now to look for a discount broker who provides a platform with the required facility. Appreciate your help.

There is no paperwork. Everything will be done by your broker. Only thing you have to do is either clear NCFM exam. or arrange a NCFM certificate for the same. Otherwise, your broker will charge for the same. It will be 750/--1000/- per certificate per month.

 

[umeshmandal]

You cannot trade for more than one person under one id !
To be more precise, Contracts will be issued in a single name under one Client id!
You can be a sub broker, but you need to have your members registered as clients under you(sub broker) for you to trade on their account!

 

[DSM]

Thanks Umesh,

I do not want contract notes issued in my name for trades that are not mine. Will speak to brokers and findout what is the simplest and easiest way to go about this, and if at all if this is possible. Will update on this thread what I find out. Appreciate your views.

You cannot trade for more than one person under one id !
To be more precise, Contracts will be issued in a single name under one Client id!
You can be a sub broker, but you need to have your members registered as clients under you(sub broker) for you to trade on their account!

 

[test123]

i say become sub broker ... u need 5 to 10 lakhs for that to do it offically .....