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.
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…
No, it is not necessary to register as an NBFC (Non-Banking Financial Company) if your company’s objective is to trade in the markets using your own funds and not accepting deposits or managing money on behalf of others.
Key Points:
NBFC registration with RBI is only required if the company is involved in:
Lending
Accepting public deposits
Managing client funds
Providing Financial services to others
If you’re forming a company solely to trade in Futures, Options, commodities, or equities with your own capital, and not offering investment services to clients, then NBFC registration is not required.
You can register your company as a Private Limited Company or LLP with appropriate object clauses in the Memorandum of Association (MoA), such as:
“To invest and deal in securities and derivatives in secondary markets for the company’s own account.”
Important:
Avoid phrases in your MoA like “portfolio management” or “investment advisory” unless you plan to obtain SEBI or RBI licenses.
Consult a CA or CS who understands financial market entities to draft the MoA properly. Seek Help from Setindiabiz Experts.