Does a pvt ltd need nbfc lincense to trade equity's and f&o

General
1

@nithin does a pvt ltd need nbfc lincense to trade equity’s and f&o if major income of comes from trading and f&o ?

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2

Yes, if more than 50% of income is from trading, it would need NBFC license.

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3

if a company just want to trade from its surplus funds and if it contribute more than 50% income from trading then which type nbfc license they need if total income not exceed 5 cr and total investment is below 100 cr.

Investment Company (IC)
Core Investment Company
or any other

4

Core investment company should be okay I guess. @TAXIQ.IN ?

5

I thing core investment company should have more then 60% parked in equity shares

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6

@TAXIQ.IN do you please share your opinion on this matter

7

do you please look in to this pdf

on page no 20 they have mentioned that

Non-systematically Important CIC does not have to register itself with RBI.
they do not have to comply with any of the CIC directions, in view of the applicability of the operative provisions of the Directions to CIC-SI only.

also on rbi website i seen that CICs with an asset size of less than INR 100 crores are exempt from registration.

so if we need to go with core investment company then i think we dont need worry until total asset reach 100 crores.

please share your opinion on this @Quicko @TAXIQ.IN and @nithin

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