Leading bourse Bombay Stock Exchange (BSE) today said ‘one person company’ (OPC) can act as a stock broker provided the entity has at least two directors. However, such broker will not be permitted to trade in his proprietary account.
“One Person Company, as permitted under the Companies Act, 2013, is eligible to be registered as a stock broker, provided it satisfies the condition of minimum two directors, as stipulated under... the Securities Contract (Regulation) Rules, 1957,” BSE said in a circular.
Further, OPCs can register as sub-brokers too.
Last week, NSE also approved OPCs to act as stock broker on similar conditions. 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.