One of my clients requires a HSBC account which is currently active and operational with regular in and out transactions in terms of lakhs. My client's funds are also in a HSBC account which are completely white and tax paid. He intends to transfer 50cr into your client's account for trading purpose. The duration will be of 10 days. The agreement drawn up between both parties would be ID concept (Investment/Disinvestment). Once the funds are in your client's account, the client will provide all necessary KYC documents required for trading purpose to whoever my client instructs to do so. The trader will verify the documents and after successful verification, the 50cr that is transferred will be blocked for trading for a period of 10 days by the trader/programmer who will execute the entire business. Kindly note that this will have no impact on your client's other funds. After the 10th day, whatever the profits are generated by the trader through this entire exercise will be transferred to your client's account.

For the provision of the account to my client to conduct this business, your client will get 25cr from my client as fee. This is the amount offered by my client for the services rendered and is non negotiable, irrespective of what profits my client generates through the trading activity. Whatever funds are remaining from the profits (minus the 25cr as agreed fees) will be lifted/transferred back to my client's designated account, along with the initial investment of 50cr. Since your client's account is being used for this transaction, naturally, he will be liable to pay taxes for the entire profit received. To facilitate this, my client will deduct the total taxes payable by your client as per law, (from my client's profits) and will keep that particular amount in your client's account itself so that he can pay the taxes accordingly to avoid IT issues. Hence, my client will only take the NET PROFITS generated out of this transaction, thereby taking over the responsibility of the tax liability that has to be borne by your client. However, it is your client's responsibility to duly and honestly pay the taxes on time. Any non-compliance or delays in this regard, please don't blame my client for it, as he has done his job responsibly and parted ways amicably. Obviously, it is your client's responsibility to take care of the taxes, now that the tax amount to be paid is left in your client's account as previously mentioned above.

Reason for requirement of a different account by my client:- My client has already traded through his existing account successfully recently and received the profits and has paid his taxes as per law.
As per trading laws, he cannot trade for another 1 year after completion of a successful trade.

Also, if your client wants to receive his fee (25cr) in liquid/cash, then my trader will also arrange for a transfer of 4% of the fees to the account and the remaining amount will be delivered in cash wherever the account holder (your client) wishes it to be delivered.

Let me know if you have any further questions. If you wish to have a meeting to discuss this proposal in further detail, I will be happy to arrange.

Best Regards.