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.
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.

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

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

Approx. Timeline
Apply for reserving name of new company with ROC
5 working days from the date of application
PLOA and NOC from GIFT City
10 working days
ROC Process for incorporation
15 working days
Application to SEZ
30 working days from the date of application
Application to Stock Exchange & IFSCA
30 working days from the date of application
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:
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.
Minimum Net worth (Trading Member)
USD 1,35,000
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
Stock exchange fees
USD 15,000
Base Minimum Capital (BMC) deposit Requirement
Proprietary trading without Algo trading – USD 15,000
Proprietary trading with Algo trading      – USD 75,000
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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