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Investment in shares-Cj

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charu

Student CA Final

8 Points Posted on 11 November 2021

Is it allowed to make a long term/short term investment in shares via unsecured loans? Also can intraday trading or derivatives trading be carried out via unsecured loans?

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Quick Summary

This discussion explores the permissibility of using unsecured loans for various types of share investments, including long-term and short-term holdings, as well as intraday and derivatives trading. While generally allowed, it's noted that loan funds should ideally be used for the purpose for which they were originally raised, particularly for LLPs and companies.