GOLD Loan to purchase Stocks

Dear Experts,

Greetings.

Regarding the subject matter, whether any legal (or such) restriction exists restricting us to buy shares/stocks from primary or secondary markets using the amount received from gold loan provided by banks/NBFC or ay other financial companies. Whether we need to make any other protocols/formalities on IT point of view to proceed with such stocks investents. Plesse advise. 🙏🏻 Regards GK

Replies (5)
Quick Summary
This discussion explores the legality of using funds from a gold loan to invest in stocks, whether for long-term holdings, short-term trades, or intraday activities. Experts clarify that for resident individuals, there are generally no specific restrictions on using gold loan proceeds for stock market investments, beyond informing the lending institution about the intended use. Permissions are typically only required if the investment activity constitutes a business venture.

For investment purpose, no restrictions.

If it's your business, need to get some permissions from relevant departments.

Thank you sir,

I wish to make that amount to use for long, short investments and intraday trades. And wish to continue such if I could earn at least 30% annually. So what sort of permissions need to have and from which departments should I get those - please let me know sir.

(I was a NRI, but retired /stopped my service since 2015 - just for your information only)

with many thanks once again for your kind advise,

GK

You being resident Individual now, no need of such formalities, except declaration with the loaner bank about its utilization.

That is nice to hear Dhiraj Sir🥰🙏

My hearty thanks for your kind responses and instructions. Best Regards.

Joyful weekend 💖

GK

You are welcome.                           

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