Anonymous
in Trade Law
Asked May 09, 2017

Acquire trade license

  • 2 Answers
  • 608 Views

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.

Answers 2

Yes, so that you will be on safer side. The local municipality will collect one time tax per year, it is not burden.

Agree Comment 0 Agrees over 4 years ago

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). 

Agree Comment 0 Agrees over 4 years ago

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