Is there advantages of setting up Prop Trading desk in Gift City (IFSC Company)? I know there is no STT in Gift City
Why broking firms register a fresh company in IFSC rather than migrate existing company to Gift City?
Prop desk that focus on Derivative Trading , setup a company in IFSC or go with normal company?
Being in GIFT city is like being in a different jurisdiction (outside India). So Indian companies can’t migrate.
Prop traders looking to trade international markets or on the exchanges within GIFT are the ones who are setting up shop there. You can’t move there and trade Indian markets to avoid STT.
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So can one setup a company in gift city and trade forex or cfd outside India legally ?
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Hey @nithin sir ; what if the plan is to find such profitable traders and allocate funds to them in return for a nominal fees. What would be your plan of action to execute this plan?
Assumptions:
1)The RMS and Frontend could be built on top of the Kite APIs.
2) The entity could partner with Zerodha as a DP so in turn the Infra and tech stack would be yours and we don’t need an active NSE membership to start with.
In this case when we build on top of your APIs apart from getting access to the Zerodha existing client base do we also get any deductions in the brokerage or is it same for all participants?
We don’t lease out our infra for stuff which is regulatory grey. You would have to take your own broking license.
How is regulatory grey area?
Because we already have existing prop desk firms in India. To speed up the setup process collaboration in terms of technology would be of great help for a headstart ; because you yourself have been through it and know the hassles , time and efforts needed to setup a broking license today.
U r a prop firm, as in a broking firm (with license) already?
No I am not associated with any prop firms or I don’t have a broking license as of now.
I want to build in this space for mass retail traders and thats the reason I am seeking help and guidance from your end.
I have also reached out to you on your mail.
The sender email id is divvya1808@gmail.com
Appreciate and respect your valuable insights and help.