NBFC for a FnO focused partnership firm

General
1

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

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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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3

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)?

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@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

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

6

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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7

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?

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

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