Trading Account Handling With Profit Sharing

Have you recently opened a demat account, excited to begin your trading journey, only to start receiving calls or messages from people offering to trading account handling with profit sharing services?

If yes, then you must stay alert. What appears to be a shortcut to wealth is often a trap that could cost you your entire capital.

Let’s get into the details to understand how this works, why it’s illegal, the consequences involved, and what steps you can take if you’ve already been trapped.

Trading Account Handling with Profit Sharing India

Since 2020, around 14 crores demat accounts have been opened, and among those, around 5 crores accounts are active in the share market.

Now this accelerated growth post covid is due to easy online onboarding, widespread smartphone usage, and bull-market enthusiasm.

When every business was facing a tough time in COVID, the stock market was making new highs. People misread it and considered it to be an opportunity to become rich overnight.

However, reality hit hard when most of those could not sustain in the highly volatile market, even for a few months.

But their willingness to make money from the market didn’t die, and many people and fake advisors started reaping benefits out of it by offering services like trading account handling with profit sharing.

In this setup, someone (registered or unregistered) reaches out, offering to trade on your behalf using your demat account and split the profits.

But what most people don‘’t consider checking:

Is a demat account legal in India?
Is demat account handling safe?
Does it violate SEBI guidelines?
And what if losses occur?

Beginners with little or no understanding of the share market, like this offer, and without any idea of risk, share their login with them.

Unfortunately, they end up losing more money than they could afford or could have lost if they had traded by themselves.

SEBI Registered Account Handling

As per SEBI guidelines, there are services like account handling that are ethical as well as legal. As per the regulatory body:

Only PMS or AIFs registered with SEBI can legally manage your funds under a formal structure
RAs and IAs can give advice, but not execute trades or handle your account
Even SEBI-registered entities are prohibited from offering guaranteed returns or entering profit-sharing agreements.

However, most of the beginner traders, being unaware of such guidelines, get trapped in one or the other profit-sharing scheme offered by a registered entity, including Research Analysts, Investment Advisers, and even stock brokers.

They generally come with an offer like:

“We place trades, you get 60% of the profit.“

Clients trusting their knowledge & experience, hand over their login without realizing that the losses are on their side only.

Now, such practices violate SEBI’s code of conduct and also lead to loss of clients’ capital by deploying it in high-risk strategies like naked options.

Here is one of the case studies where registered entities promised guaranteed returns and trapped them in profit-sharing schemes, resulting in huge losses for traders.

Alderleaf Stockmantra

An aspiring trader got a call in October 2025 from someone claiming to represent Alderleaf Stockmantra Private Limited.

The caller sounded confident, flaunted their SEBI registration, and offered a profit-sharing deal, initially 50–50, later sweetened to 60% for him.

To build trust, they ran a “demo trade” showing small profits.

Encouraged, he paid ₹25,000 as a service fee and deposited ₹50,000 into his account. At first, he saw minor gains, but soon the profits vanished.

Then came the pitch: hand over demat login credentials, and they’d manage trades for “zero risk” with “direct NSE/BSE connections” and guaranteed 200–300x returns.

Believing them, he agreed, but ultimately lost around ₹70,000, plus the service fee.

This is a classic profit sharing scam, highlighting the profit sharing scams risk: even SEBI-registered entities can step over the rules, promising profits they can’t deliver, while the investor bears all the losses.

In case you get trapped by any registered firm in such a case and lose money, then take immediate action and file a complaint against stock advisory online.

Trading Account Handling With Profit Sharing Telegram Channel

Apart from SEBI-registered advisory, some unregistered institutes & individuals approach traders with account handling services telegram & Instagram with an offer like

“DM us to handle your account. No fees. Just profit sharing 70:30.”

But here’s what happens:

Fake screenshots are used to show profits
You are asked to fund ₹1 lakh or more and share login credentials
Losses occur due to high-risk F&O or scalping strategies
Once losses happen, the handlers either disappear or block you
Most operate without any SEBI registration and offer no accountability

Consequences of Trading Account Handling with Profit Sharing

Traders facing losses or lacking knowledge have no idea of the guidelines of SEBI and get trapped in the advisory or fake scammers’ trap of profit sharing on account handling in stock market.

This generally leads to much bigger consequences, such as:

Account misuse: Handlers place trades beyond the agreed risk.
Capital erosion: Retail investors often lose their entire trading capital.
Psychological stress: Traders face emotional distress and family issues due to financial losses.
Difficulty filing complaints: No understanding or challenges in reporting, if the handler is unregistered.

How to Report Trading Account Handling with Profit Sharing?

If you fell into this trap, you’re not alone. Take action immediately:

If the handler is SEBI-registered, register with us and get assistance to file a SEBI SCORES complaint.
If they’re unregistered, you can still reach out to us.
We assist with:
- Drafting the complaint professionally
- Filing it with the right regulatory body
- Preparing for arbitration if required