RBI just made small private investment pools way easier (no registration needed)

General
1

RBI exempted small Type I NBFCs (< ₹1000 Cr assets, no public money, no customer interface) from registration.

You can now set up friends & family / angel syndicate / startup pooling vehicles without the full RBI headache.

Deepak Shenoy says it’s a solid progressive move and more private funds might get benefitted or come up.

Link: https://x.com/deepakshenoy/status/2019670753692774888

This is actually useful, it will now help many HNIs, family offices and small groups from doing clean, pooled investments. Expect to see more micro-funds, syndicates. Also guessing many companies might encourage this and create a niche around this.

They might even compete with PMS and Mutual Funds.

Thoughts? Actually gonna use this or still too niche?

2

can we form private limited company to trade with Zerodha ?

3

Worth noting this is only a proposal.

RBI itself says draft amendment directions will be issued later for stakeholder feedback. Until those are released and finalised, there’s no change yet, and the actual exemption will depend on conditions and safeguards in the final notification.

1 Like
4

Yes you can.

5

They should also allowed this for One Person Company.