Trading with other people’s money

[nithin]

@aseem12321

Here, what is the definition of “50% of REVENUE”.

• In case of trading FNO, is it “Turnover” or “Net Realized Profit”
• In case of business, is it “Sales revenue of goods” or “Sales - Costs of good sold (also known as gross profit)” or “Sales - Costs of goods sold - Expenses (also knows as net profit)”

Once the definition is clear, we would be able to understand whether we fall under the 50-50 rule.

Revenue = profits and not turnover when trading and in this context. So if your company has say Revenue of Rs 1crore and if more than 50lks or 50% come from trading profits and/or from interest income, that is financial income and will need NBFC license.