Is it possible to hold shares as stock in trade?

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Chintan Patel (Querist)

23 December 2013 Can shares be held as stock in trade?
If yes,who can hold so?
Is it the brokers who buy shares on client's behalf?

-Thank You

Nikhil Kaushik

Nikhil Kaushik (Expert)

23 December 2013 1. yes you can hold shares as stock in trade.

2. Anyone who wishes to do a business in share trading (anyone) can do so. There is no need for regulatory permission to do so. You need to maintain separate accounts and show it as stock instead as investments.

3. Yes you can say so. broker act as the intermediary between the buyer and the seller.

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@VaibhavJ

@VaibhavJ (Expert)

23 December 2013 Yes agree with expert.

Those who are doing trading in shares for them shares are Stock in Trade.

Thanks

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Chintan Patel

Chintan Patel (Querist)

24 December 2013 Thank You Nikhil Sir for your reply,this means that those who are interested in speculation of shares MUST show shares as stock in trade since speculation requires active participation in the activity?

Nikhil Kaushik

Nikhil Kaushik (Expert)

24 December 2013 you cant say must show. But yes, preferably they should show it in trading stock.

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