• Accept others' money and invest it in non-regulated market

Dear all,

I would like to know if it's possible to enter an agreement with other people and on mutual understanding and clear clauses invest their money.

In this case I am not talking about normal stock exchange but cryptocurrencies, which I can trade with my european account.

My questions are:

- can I trade others' people money as a private individual (even a business would be fine) in order to achieve a profit for myself?
- am I allowed to do this without broker license? (as again we are not talking about, regulated market)
- can I advertise this online to acquire investors? (I will be paying taxes on my profits of course)

Thank you for any answer.

Best regards
Asked 6 years ago in Business Law

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7 Answers

RBI has stated that The creation, trading or usage of VCs including Bitcoins, as a medium for payment are not authorised by any central bank or monetary authority. No regulatory approvals, registration or authorisation is stated to have been obtained by the entities concerned for carrying on such activities,

2)According to RBI they pose potential financial, legal, customer protection and security-related risks," "Payments by such currencies are on a peer-to- peer basis and there is no established framework for recourse to customer problems, disputes, etc. Legal status is definitely not there,"

3)you would not get any licence to deal in crypto currencies

4)do not trade with investors money

5)Bitcon is legal in USA, EU , Japan but not in india

Ajay Sethi
Advocate, Mumbai
94522 Answers
7485 Consultations

5.0 on 5.0

you can do in through individual agreement. broker license is not required in you invested in a fund which can be invested by individual. you can take a fixed amount as remuneration or in other form except brokerage. RBI has said that cryptocurrencies can not be prevented in online trading. RBI has no control over cryptocurrencies like bitcoin etc.

Shivendra Pratap Singh
Advocate, Lucknow
5127 Answers
78 Consultations

4.9 on 5.0

Sir,

You can trade with others money without any license but you need to make different way of agreement.

if you would like to advertise then you may need to register your firm.

thanks,

adv.niranjan,

mob / whatsapp - .

Niranjan
Advocate, Bangalore
844 Answers
9 Consultations

4.9 on 5.0

For doing stock market trading business by an investment of others who will participate in trading activities with you, then you may have to obtain stock broking license, if you are receiving the investments from others.

You are answerable hence you need to have broking license.

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

it is not advised to do the same without brokers license.

regards

Anilesh Tewari
Advocate, New Delhi
18077 Answers
377 Consultations

5.0 on 5.0

You can enter into agreement with your investors wherein you invest their money and pay them monthly interest . Get agreement drafted by lawyer

2) your agreement should not mention that you shall invest their money in crypto currencies

Ajay Sethi
Advocate, Mumbai
94522 Answers
7485 Consultations

5.0 on 5.0

You cannot enter into this business in a regulated market but yo wanted to continue this bu sines in a legal manner.

Well, in that case you can enter into a business contract on commissioner basis for some other business with all other conditions on profit and loss etc, without mentioning the actual business intended to do, at least on papers.

You can clearly mention the conditions of profit sharing and also the commissions on the transactions, TDS on the commissions received as well as TDS on the transactions made etc.

You can sit with an advocate and discuss the issues, get an agreement drafted favoring yor situation and not affecting the business and its future prospects etc.

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

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