When it comes to trading in India, two names come up frequently — SEBI (Securities and
Exchange Board of India) and RBI (Reserve Bank of India). Both are highly respected
regulatory bodies, and their role is to maintain transparency, protect investors, and regulate the
financial markets.
However, many traders are still confused about how these regulations apply to proprietary
trading firms (prop firms) like FundedStock.live This confusion often leads to unnecessary
doubts about legitimacy.
In this article, we’ll break it down clearly — and show you why FundedStock.live is 100%
transparent, trustworthy, and designed for serious traders.
1. What SEBI & RBI Actually Regulate
SEBI regulates stockbrokers, investment advisors, mutual funds, PMS (Portfolio Management
Services), and other investor-facing financial services.
RBI regulates banks, NBFCs, and entities involved in currency exchange, lending, and payment
systems.
Prop firms are different — they do not take public deposits, give investment advice, or act as
brokers. Instead, they provide company-owned capital to skilled traders, under specific risk
management rules.
2. Why Prop Firms Don’t Need SEBI/RBI Registration
Currently, in India, there are no specific SEBI or RBI guidelines for prop firms — whether online
or offline.
Many well-known offline prop firms have been operating for years without SEBI/RBI licenses
because they fall outside the current regulatory categories.
FundedStock.live operates under the same model — but instead of office-based trading, we
provide a fully online platform to make it accessible across India.
3. The FundedStock Model – 100% Transparent
Here’s how our model works:
We use our own capital or investor funds.
We allocate it to traders who qualify via skill tests or instant funding plans.
The profits are shared 80% to the trader, 10% to our investors, and 10% to the company.
There’s no public investment, no deposit taking, no trading advice, and no pooled client money.
This is why our model is not under SEBI/RBI licensing requirements.
4. Why This Is Safe for Traders
Unlike in the Forex prop firm industry (where losses by traders can mean profits for the
company), our success is tied directly to your success.
If you profit, we profit. If you lose, we lose.
That’s why our risk management rules (drawdowns, no hedging, consistency rules) exist — to
protect both the trader and the capital.
5. How We Build Trust Without a License
While we don’t need SEBI/RBI registration, we make sure trust is built through:
Over 15,000 funded accounts sold to Indian traders.
Weekly verified payouts (proofs available).
Features on reputable media like Times Now India.
Transparent rules and contracts before you join.
No fake reviews, no paid influencer hype — only real traders, real results.
6. Final Word
SEBI and RBI are essential for regulating brokers, advisors, and banks — but prop firms like
FundedStock operate under a different category, one that currently has no licensing requirement
in India.
What matters more than a license is transparency, payout reliability, and fair rules — and that’s
exactly where FundedStock.live stands apart.
Disclaimer: FundedStock is not registered with SEBI or RBI. We use our own or investor capital
to fund traders and charge fees solely for company maintenance and operational costs. We do
not take public deposits, give investment advice, or act as a stockbroker
The Truth About SEBI, RBI, and Prop Firms in India
