Creation of Company

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Ravi Kumar Rajgaria

Ravi Kumar Rajgaria (Querist)
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19 May 2008 Can we create a company consisting main object for trading and investment in Shares/Mutual Funds?

CA. Yayati Tyagi

CA. Yayati Tyagi (Expert)
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19 May 2008 i don't see a problem.

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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20 May 2008 Why this doubt?

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Ravi Kumar Rajgaria

Ravi Kumar Rajgaria (Querist)
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20 May 2008 I have a doubt because of I heared that Only NBFC can do it or it is better to do these transactions from NBFC.Am I right?

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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20 May 2008 If the main object of the company is tading in investments and mutual funds it will be a NBFC.

CA. Yayati Tyagi

CA. Yayati Tyagi (Expert)
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20 May 2008 i think if a company invests its own funds in capital market, it will not necessarily be called a NBFC.

NBFC is a company, which have its main objective to accept deposits from public and distribute loans. then it need to apply for license with RBI.

so, i believe if you want to invest ur own funds in stocks/mutual funds, u need not to be a NBFC. but if u wish to collect money from public and then invest that money in stocks, u will have to get a license of NBFC.