Object of Trading of Shares and Securities

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This discussion explores whether a private limited company in India can be established primarily for trading shares, securities, F&O, and currency. It also addresses the implications of foreign resident directors and shareholders, and the necessary permissions from the RBI and SEBI. The advice suggests that such a company might be considered an 'intermediary' under SEBI regulations, potentially impacting its formation and operation.

CA ANKIT GADA

CA ANKIT GADA (Querist)
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13 May 2020 Can normal Pvt ltd be formed for trading of shares & securities, F&O, MCX, Currency,etc as a main business object ?

Also Both Directors & Shareholders are POI but Foreign Resident staying in Singapore.

Please guide what permission must be obtained to incorporate the Pvt Ltd in india at Indian address ?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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13 May 2020 Permission and registration with RBI is required as NBFC.
Take one resident as additional director.

c.bakshi

c.bakshi (Expert)
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14 May 2020 the main object of this private company is covered under the meaning of "intermediary" u/s 12 of SEBI act, 1992. the operation of the company is like of depository participant under Depository Act, 1996 so i think its not allowable.

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