HOW TO CLASSIFY YOUR TRADING FIRM AS A " FAMILY OFFICE " in INDIA , w.r.t INDIAN REGULATORY BODIES?


#1

A family office is a combination of prop firm and hedge fund, in that
it trades only proprietary capital and is largely exempt from
regulatory oversight, while deploying mostly long term strategies like
a hedge fund.

The rise of the family office underscores the difficulty of
successfully managing a hedge fund in a highly regulated global
environment. Legendary investor George Soros has converted Soros Fund
Management from a hedge fund into a family office. Steven Cohen,
founder of consistently profitable S.A.C. Capital Advisors shuttered
the firm following a bruising insider trading investigation, then
reemerged in 2014 as Point72 Asset Management, also structured as a
family office.

IS THERE ANY SEPARATE CLASSIFICATION OF FAMILY OFFICE ?

HOW TO GET ONE FOR YOUR TRADING FIRM ?


#2

There isn’t any family office classification for routing your trades. You may choose to structure your family office in form of a company (Public, Pvt. or OPC), Partnership firm, Sole Proprietorship, HUF (if you’re Hindu, Jain or SIkh), Trust, etc.

Hopefully, this will help. Cheers.


#3

If trading from big capital which structure is best individual or private company and will forming company enhance the credibility and also limit liability.


#4

You’ll be in the best position to understand your requirements. Perhaps, you could also consult an accountant. However, forming a company might make sense if you’re looking to create a clean structure where accounting for incomes and expenses from trading/investing would be easier to allocate. Keep in mind that there is significantly more regulation involved in a corporate entity structure.

A reiteration. Consult an accountant with the details of your needs. Cheers.


#5

thanks i already consulted an accountant but he like many others is not completely aware of the nuisances of trading stocks and derivatives .