Is it necessary to register as an NBFC when forming a company to trade in the markets?

[suresh]

I am a full-time day trader and am planning to form a company. But When I tried to register the company the consultant said that if the company’s objective is to deal with financial assets then it should be formed as an NBFC company.

I do not wish to deal with public money. I intend to trade intraday in Futures, Options and commodities. Can someone please clarify if this is the case.

[Bhuvan]

please clarify if this is the case.

Check this thread

Trading F&O via LLC or Pvt Ltd

Hi, Can someone please comment if a NBFC license is required if the sole purpose of forming a company is to use it for trading F&O segment ? This will be investing/trading only money recieved from the directors. Would be grateful if @TAXIQ.IN or @nithin can clarify if a NBFC license is required to open a trading account in the name of the company and would there be any issues if the company has no other operations except to trade derivatives in the market to generate non-speculative business i…

[S_gupta]

I also have a similar query. If an individual wish to become a broker with NSE, only for EQ and MIS. What are the requirement and procedure.

From a look at NSE website, it seems the total deposit be 75L, and 10000/- yearly + taxes ? It also talks about 2 yrs of experience as an assistant /clerk… But how about those managing own portfolio through existing brokers…

[nithin]

From a look at NSE website, it seems the total deposit be 75L, and 10000/- yearly + taxes ? It also talks about 2 yrs of experience as an assistant /clerk… But how about those managing own portfolio through existing brokers…

NSE has something called alpha membership for people who don’t intend to run a brokerage business. I have explained here

NSE Alpha Membership

Hi @nithin, NSE Alpha membership requires 25lkhs as deposit and I think 50 lakhs as net worth. If someone has a book size above 50lkhs does it make sense to apply for NSE alpha membership ? I guess, except for the brokerage, all other costs remain the same. So am I correct in assuming if the interest earned on 25 lakhs is less than the total brokerage paid, it is financially feasible to think of an Alpha membership ? 25lakhs will basically say earn 8%-9% annualized. So if someone is paying mor…