Stock broking Entity In GIFT City, IFSC

Global Overview:

In the early days, brokers operated as intermediaries, facilitating trades between buyers and sellers. They often conducted business in coffeehouses or other meeting places. Over time, formalized brokerage firms emerged.

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Today, stock broking is characterized by global connectivity, algorithmic trading, and the use of sophisticated financial instruments. Commission-free trading, robo-advisors, and mobile trading apps are among the latest trends. The history of stock broking reflects the evolution of financial markets and their role in supporting economic growth and development worldwide. From humble beginnings in coffeehouses to the digital age, stock broking has come a long way.

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Stock broking in India:

The roots of stock trading in India can be traced back to the 18th century when stockbrokers would gather under banyan trees in Mumbai to conduct trades. Economic reforms in the early 1990s played a crucial role in the development of the Indian stock market. Liberalization measures opened up the economy, attracting foreign investment and increasing participation in the stock markets.

As part of the globalization trend, Indian stock markets became more integrated with global markets. Foreign Institutional Investors (FIIs) play a significant role in Indian stock markets.

The process of demutualization, separating ownership and trading rights, took place in the Indian stock exchanges. This move aimed to enhance transparency and governance in the functioning of stock exchanges

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Steps & timelines for setting up Stock broking Entity in GIFT City:

• Steps — Activity — Approx. Timeline
• 1 — Apply for reserving name of new company with ROC — 5 working days from the date of application
• 2 — PLOA and NOC from GIFT City — 10 working days
• 3 — ROC Process for incorporation — 15 working days
• 4 — Application to SEZ — 30 working days from the date of application
• 5 — Application to Stock Exchange & IFSCA — 30 working days from the date of application
• 6 — The approved Units shall have to execute lease deed/Leave and License with the Developer or Co –developer as the case may be for the allotted space. — according to terms and condition on which the PLOA was issued
• Approx time — 90 working days

Regulatory requirements and Fees:

• Sr.no — Particulars — Descriptions
• 1 — Legal Form — Branch or forming a company or limited liability partnership or body corporate or partnership firm or proprietorship firm or any other form as may be permitted by the Authority. Branch structure is permitted only for an intermediary which is already registered or regulated in India or a Foreign Jurisdiction for conducting similar activities.
• 2 — Minimum Net worth (Trading Member) — USD 1,35,000
• 3 — Permissible categories of clients — (I) a person resident outside India (II) a non-resident Indian. (III) a non-individual resident in India who is eligible under FEMA to invest funds offshore, to the extent of outward investment permitted. (IV) an individual resident in India who is eligible under FEMA to invest funds offshore, to the extent allowed in the Liberalized Remittance Scheme of Reserve Bank of India
• 4 — Stock exchange fees — USD 15,000
• 5 — Base Minimum Capital (BMC) deposit Requirement — Proprietary trading without Algo trading – USD 15,000 Proprietary trading with Algo trading – USD 75,000
• 6 — Requirement of Employee — Appointment of Compliance Officer

Note: Above mentioned fees are on approximate basis and actual fees may differ at the time of making application

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