Trade as business entity

How to create business entity that will trade on behalf of group of individuals.

There is no easy way to do this, you need to either setup a PMS business or an alternate investment fund (Hedge fund). Both the routes are quite complex, requires SEBI approvals and all.

PMS minimum ticket size is Rs 25lks for a client (derivatives can be used only as hedging instruments). AIF ticket size is Rs 1 crore per client (min corpus of atleast Rs 20 crores to start off). With AIF, naked derivatives trading can be undertaken.

All other ways of pooling money collectively to trade/invest or trading on behalf of another person is not legal.