Section 8 Companies

@VenuMadhav

Hello Venu:

Can a section 8 company open a trading account and trade in derivatives?

No,
Section 8 company can only engage in activities of promotion of commerce, art, science, sports, education, research, social welfare, religion, charity etc., but not commercial activity leading to trade, buying and selling etc. resulting in profit and distribution of dividend.

1 Like

Thanks Sowjanya for your response.

How do large charitable organizations with investable surplus manage their excess funds

I think they can invest money in mutual funds and alternative investment funds , don’t know about exact regulations.