Leading bourse National Stock Exchange (NSE) today said that ‘one person company’ can act as stock broker provided the entity has at least two directors.
However, such broker would not be allowed to trade in his proprietary account.
“One Person Company (OPC) as described under the Companies Act is eligible to be registered as a stock broker, provided it satisfies the condition of minimum two directors, as stipulated under…Securities Contract (Regulation) Rules, 1957,” NSE said in a circular.
Further, OPCs can register as a sub-brokers too.
At the end of January, a total of 5,402 OPCs were registered in the country.
The OPC concept was introduced in the Companies Act, 2013 to primarily benefit entrepreneurs and facilitate easier access to funding sources through an institutional establishment.
Apart from India, many nations, including the US, China and Singapore, allow businesses to be structured as OPCs.