NBFC for a FnO focused partnership firm

Is NBFC license mandatory for a partnership firm whose primary objective/asset/income is FnO trading (with family/friend money)?

As far as NBFC is concerned it’s non banking financial companies … so it has to be a company to be an NBFC A partnership can’t apply for NBFC.

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Thank you for the response :slight_smile:

Let me reframe the question - Is NBFC license mandatory if the primary objective/asset/income of an entity is FnO trading (with family’s / friend’s money)?


@Mukund10 let me answer this way it’ll depend how you wanna do it,
if you form a company then yes it’ll be necessary
if you form a partnership i’m not sure but as much as i know no you don’t need nbfc
if you just take money from them and still do it as in individual then no

i’d like to listen some confirmations from you guys
@nithin @ShubhS9 @Bhuvan @Meher_Smaran @Karthik

Had written about this

If you are pooling the funds with the primary objective of trading, it is a potential regulatory issue.

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Hello @nithin this topic beautifully explains a lot about this concern however i have one more thing to ask Can an HUF have an demat account and trade?

Hi @CN_ib, yes. You can open a HUF account for trading. You can check the account opening process here.

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