Forming A Prop Trading Firm (LLP)

If you are setting the pvt ltd company and its main purpose is trading, then yeah it is an issue. If more than 50% of income comes from this activity, you might have to get an NBFC license. Also selling shares might seem like you are circumventing the collective investment scheme regulation. Think about it, everyone would do it this way instead of having to take AIF or PMS license, if it was this easy.

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