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Q. Dear Sir,
I have been investing and trading in stocks & derivatives as an Individual for some years now - operating with a 3-in-1 account with the HDFC Bank.
Since I am now onto this work on a full time basis and it has become my business I got a Proprietorship (Financial services) firm registered with the registrar of companies.
I then proceeded to open a Current Account (as Cos can only operate under a current account)
with the same Bank - asking them to open a new 3-in-1 account in the name of the
Company - thinking that I could operate my stock trading business under the name
of the new Co., and subsequently close my individual account with them.
But, though the Bank opened the Current Account in the name of the Company,
they told me that they cannot open a Demat / Trading Account of a Proprietership
Company. Things are at a standstill - even as I continue with the Individual Account.
Could you kindly clarify this issue... on what is the actual rule or law on this subject.?
Is the Bank right in saying that they cannot open a Demat/Trading account in the name
of a Proprietorship Company. If the Bank is right... what is the way out for me.?
I wanted to offer financial services / sub-broking / sale of mutual fund/ Insurance etc
and at the same time do Investing & Trading in the name of the Company?
Thanks and Regards
Azaad
A. The bank is wrong in denying you from opening a demand / trading account in the name of a proprietorship.
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