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)

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)

13 May 2020 Permission and registration with RBI is required as NBFC.
Take one resident as additional director.

c.bakshi

c.bakshi (Expert)

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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