Formation of company
surajp21
(Querist) 30 January 2012
This query is : Resolved
Dear Sir / Madam,
My query is as follows:
Mr. A is acting as a sub-broker for a leading stock broker who manages portfolio of various clients like under PMS. In this situation, he executes various share trades in n number of shares of his client's choic or as per his recommendation. As of now his clientele is limited but he expects it to increase beyond the number where he wont act as a one man show. Hence he is planning to form a PVT ltd company along with his colleague where he will take deposits from his clients and will invest in share market in his own style and not as earlier stated. In turn, he will distribute the profit made as a dividend to his clients. If required, he will return deposit accepted to his client.
I wish to know whether is it possible to form a such company who will accept deposits and invest in shares. What kind of Acts will be applicable to start such business?
Regards,
Suraj
Raj Kumar Makkad
(Expert) 30 January 2012
Such company shall have to acquire as NBFC as per rules and regulations of RBI and shall also have to register itself with SEBI. It shall be better for you to take the services of a CA for this purpose.
Sankaranarayanan
(Expert) 31 January 2012
U can start for which. U doubt some CA or tax expert advocate to make MOU of company and get grant certificate from Sebi and Rbi.
Jai Karan Nagwan
(Expert) 31 January 2012
Private limited company can not accept the deposit or invite public issue.
M V Gupta
(Expert) 02 February 2012
The querist's proposal is to accept deposits from his clients only. This may not need NBFC status; but may require registration with the SEBI and follow its guidelines while trading for the customers.
Pradeep Rohra
(Expert) 04 February 2012
Registartion with SEBI is necessary but but I am not recommand services of C.A.
surajp21
(Querist) 05 February 2012
Resp members,
Thanks for your valuable replies.
Here Mr. A who in present case, finds it difficult to handle a large number of clients, wishes to find out a way where he can invest his clients money. He is also not so big to form a NBFC. But the business, though not in true sense, which is planning, seems to be like Asset Management Company - MF where individual investor invest in a particular MF and Fund manages invests his money in his style.
So I would like to know What kind of company he can form.
Advocate. Arunagiri
(Expert) 05 February 2012
You can form a consultancy company. The activities you are planning are not NBFC.
You can call it as a venture capital.
Draft the agreement very carefully, with your clients, to avoid future litigation, in case of loss in the market.
V R SHROFF
(Expert) 09 February 2012
Is it the same owner of a chawl you reside and want to form Regd Association??
As share broker now absconding or not ready to co-operate you??
surajp21
(Querist) 09 February 2012
No V. R. Shroff Sir.
The person in above query is my friend. He handles portfolio of around 60-65 people but now find it difficult as he is number of enquiries; hence wanted to start some business activity as stated above.
Thanks to all members for replying to my query.
