Acquire trade license
Hi I just wanted to know whether it is necessary to acquire a trade license from the local municipal authorities to start a sub-brokerage /franchisee of stock broker even though I will be obtaining an appointment letter from Exchanges/Main Broker as an Authorised person.
Yes, so that you will be on safer side. The local municipality will collect one time tax per year, it is not burden.
There is no requirement of a trade licence from the municipal authorities to start a sub-brokerage. The only requirements are those specified by the Securities and Exchange Board of India. (You can refer to the Securities and Exchange Board of India (Stock Brokers and Sub-brokers) Regulations, 1992 for these requirements, which can be found here: http://www.sebi.gov.in/sebi_data/commondocs/stockbroamendregu_p.pdf).
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