Can partnership firm invest in shares in india?

Yes, a partnership firm is also a juristic person and it can do all such acts and activities like any other juristic person such as a company, individual etc provided the partnership deed provides for the manner of investments of its funds

I beg to differ from the view already expressed:

A Partnership firm cannot be a member of a Company. The membership has to be in the name of the partners of the firm. There is a clarification from the Department of Company Affairs stating that "a firm, not being a person cannot be registered as a member of the Company except when the Company is licences under Sec 25 of the Companies Act, 1956.

Regards

Sunu

CS Sunu is absolutely right

Partnership firm can invest in shares. CS Sonu is absolutely right that Partnership firm can not become member of the company as it doesnot have a seprate legal status like company. But Demat account can be opened in the name of the partners and broking account can be opened in the name of partnership firm. Partners can unanimously appoint authorised partner who will issue instructions to broker for purchasing and selling the shares. For this porpose Partnership PAn no. should be given.So the main answer is yes partnership firm can invest in shares market but cannot hold shares in partnership firm's name.

please clarify your query. in case partnership firm is intend to open a trading account and deal in the buying and selling in stock market. then a partnership can open trading account in its name

can a partnership firm wherin the partners are pvt ltd companies open a demat a/c...can the demat a/c be opened in the name of the pvt ltd companies jointly

In India partnership firm does not recognized as seprate legal entity. A firm always goes with its partners.

A firm can invest in a company and accordingly can become member through one or more of its partner. If partner holds shares in a company on behalf of the firm, Section 187C of the Company should be complied with.

Suresh

Partnership firm can invest in shares. CS Sonu is absolutely right that Partnership firm can not become member of the company as it doesnot have a seprate legal status like company. But Demat account can be opened in the name of the partners and broking account can be opened in the name of partnership firm. Partners can unanimously appoint authorised partner who will issue instructions to broker for purchasing and selling the shares. For this porpose Partnership PAn no. should be given.So the main answer is yes partnership firm can invest in shares market but cannot hold shares in partnership firm's name.

Share can be purchased by Partner subject to partnership deed & the beneficiary will be the partnership firm.

From the above it can be interpreted that in the Register of members and share certificate it should be mentioned Partners name to whom the firm has delegated the powers, also mentioning  on whose behalf it is been invested.

Further as Sec187C has to be compiled. Would like to know if the same has not been compiled with in past what would be the remedial measures at present..

Can any one pls explain what is  "Legal status/entity" means.

Sonu is absolutely correct. The Department Circular which talks about a firm not being a member is Circular 4/72 dated 9 March, 1972. 

what is the taxation i need to follow in case of investment partnership? capital gains or income tax?