Registration required for investing public money in shares

This query is : Open

Vipul J. Bhavsar (Querist)
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31 December 2010 Hello Experts,

One of my client is planning to set up a company wherein he will take money from friends, relatives etc. and invest in stock market. Further he would pay a guaranteed return to the person who has given money.
The trading will be on company's account and the proceeds after paying guaranteed returns will be earned by the company.
The trading can even be made on clients own account instead of company's account.

My question is whether the company will have to take any registration, approval under any Act applicable in India under both the cases:
1. Company invests money on its own account OR
2. Company invests money on its clients account

Regards..