Business Model of Minance

[global_bull]

Hi,

Does any body have a clear idea of the business model of Minance Capital, Bangalore? They claim to be a registered sub brokers of Angel broking and can thus manage their clients' accounts (placing orders on clients behalf). Also, they share the profits generated in the clients account in a ratio with the client. Is this legally permitted by SEBI and exchanges? Per my understanding, sub brokers can only share brokerage with the main broker on mutually agreed terms and should not charge any fee directly from the client. If that is case, charging a consultation fee from the client will not be legal. Can any one throw some light on this, please?

Regards..

 

[Kancharno]

I am interested on this. However, does this company give any training?

 

[travi]

Hi,

Does any body have a clear idea of the business model of Minance Capital, Bangalore? They claim to be a registered sub brokers of Angel broking and can thus manage their clients' accounts (placing orders on clients behalf). Also, they share the profits generated in the clients account in a ratio with the client. Is this legally permitted by SEBI and exchanges? Per my understanding, sub brokers can only share brokerage with the main broker on mutually agreed terms and should not charge any fee directly from the client. If that is case, charging a consultation fee from the client will not be legal. Can any one throw some light on this, please?

Regards..

see this http://www.traderji.com/general-tra...68-general-trading-chat-4628.html#post1183652

 

[global_bull]

Thanks for that link travi. I have all that info though.

My question in the original post still remains unanswered : Can a sub-broker legally share the profits generated in a client's account while doing algo trades in the client's account? Is this permitted by SEBI and the exchanges like NSE/ MCX ?

 

[travi]

Thanks for that link travi. I have all that info though.

My question in the original post still remains unanswered : Can a sub-broker legally share the profits generated in a client's account while doing algo trades in the client's account? Is this permitted by SEBI and the exchanges like NSE/ MCX ?

They are many such firms, many(most or all I'm not sure) are SEBI registered as well.
I wont say with conviction but definitely with conviction.

1. SEBI doesn't have problem with Algo Trading.
2. They are declaring to SEBI, their role, on your behalf (Even tip givers have to do this)

SEBI is happy bcos this generates more income for them.
The day something goes wrong they'll try and figure it out.

 

[fractalwave]

Thanks for that link travi. I have all that info though.

My question in the original post still remains unanswered : Can a sub-broker legally share the profits generated in a client's account while doing algo trades in the client's account? Is this permitted by SEBI and the exchanges like NSE/ MCX ?

Did you come to know anything about this? I have the same doubt. To manage someone else's money, you need to have PMS licence or a hedge fund licence from SEBI right?
How are they able to manage with what they're currently doing?

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