@Quicko I removed all references to securities, currencies, derivates etc and put below simple Object clause, which was also rejected with same reason.
Object clause used,
The LLP Business shall be the business to carry on Trading in Futures and Options(F&O) on the National Stock Exchange of India (NSE), until and unless changed as mutually agreed upon by all the partners for the time being of the LLP.
Response:
As the objects of the proposed LLP includes ‘trading in Futures & Options’ indicating financial activity and the
same is not allowed in case of LLP pursuant to RBI notifications. Resubmit accordingly.
Anyone who have managed to get LLP registered for F&O Please guide or comment. Thanks.
I don’t think NBFC License is Required. ENAM Holdings Pvt Ltd is a 100% Stock Trading & Stock Holding Company. However, their name doesn’t appear in RBI List.
OPC Pvt Ltd if articles of associaltion includes trading speculatively in all kinds of financial markets, commodities etc can trade all segments all right ?
@nithin you mentioned that for trading through private ltd company NBFC license is required but there are financial companies like stock Broking, mutual funds ,insurance etc which are regulated by their specific boards such as sebi,irda and don’t require nbfc license for their activities.
My CA is of the view that nbfc license would not be required but I want to confirm, can you suggest some law or CA firm having experience regarding markets , which I could consult.
What if I take alpha membership from my companies name, will it be okay then.
Or doesn’t sebi recognize or provide any type of license apart from AIFs/Broking for trading purposes.
In such a case, if the shareholder dies the nominee who is entitled to those shares has to give notice regarding this to the company, so he can get those shares registered in his name.
Rakesh Jhunjhunwala and vijay kedia trade via Rare enterprises and kedia securities etc respectively. Are those NBFCs?
LLP by definition means limited liability but trading can theoretically lead to unlimited losses. Is there not an inherent conflict there? Even OPC has limited liability facility I think
maybe , but the situation is that mca does not give name approval stating that rbi permission is required and there is no process to approach rbi for llp registration. (below response from mca for ref)
Response:
As the objects of the proposed LLP includes ‘trading in Futures & Options’ indicating financial activity and the
same is not allowed in case of LLP pursuant to RBI notifications. Resubmit accordingly.
Then how are prop trading firms setup as? What is their objective if not the same one which you mentioned and got rejected? I also am in the same dilemma but haven’t applied yet want to start trading on llp!
what i have understood is that some years(2-3) back permission was being given for llp to be setup for trading, that is when most of the firms have been setup. And also that some people keep the objects clause vague(not clearly mentioning trading) and modify the same later once llp is registered.