Can you raise capital from your friends and family without worrying about the regulations?

1 Like

Yes you can.

After raising the capital, you will have to worry about regulation based on what you intend to do with the capital.

First of all chances are that if you tell friends and family that you are borrowing money for trading, they will step back.

And trading is a high risk venture where borrowing money to trade is not advisable if you cant tolerate the situation where the whole money is lost.

If its a gift from your uncle or something, go ahead and pool the money and trade. :slight_smile:

If you are borrowing money, which you have to return back, think twice before acting. If the capital is not so huge say 50 k or less than a lakh, I dont think so you need to worry about regulations. You can always say it as a gift and return back whenever it is possible by you (internal adjustments).

Dear karthi,
If i borrow money from frnd and relatives for F & O trading, any regulation permision etc required ??

You can borrow money, deposit all that money in your bank account, link it with a trading account and start trading.
But, please do take my advice don’t do this. Never borrow money for trading…especially from friends and family…and 'moreso to trade in leveraged products. Stay safe, be happy.