I wonder if it is possible to start up a small investment group consists of a group of people which contributes an amount of money ... and then we just role the money in the stock market.

It is possible. Count me in, RM 50 for a start can? lulz

Stock market as in buying shares right? Not Forex right?

This post has been edited by -GILA-: Mar 31 2008, 11:29 PM

Im on, any minimum and / or maximum limitS?

Lol ... RM50 can buy 4 public bank shares Not bad.

Hate to crash your party folks but please read before proceeding to do anything...

This are the people who were caught and fine +imprisoned.

http://www.sc.com.my/ENG/html/enforcement/CriProsecution2008.html

handling private money is never easy, if your so called investment group is found to commit any offences by Securities Commission. You could be liable to a fine + imprisonement.

Read the licensing handbook by Securities Commission...






Attached File(s)
 licensinghandbook.pdf ( 662.24k ) Number of downloads: 34

Friend, as i said, "legal" . It will follow all the rules and regulations with professionals and lawyers.

Legal means you have to be license by Securities Commission to handle other peoples monies.

Let me highlight the issue:
1. To have a "Group"
2. To "pool" money from the "public"
3. Final one "soliciting" the public to invest by using the "media"

3 offences in a span of 1 day hhahaha...

Confirm with Secuties Commission or Bursa Malaysia.. they can guide you on this.

Though your plan is ambitious but not necessarily impossible, you just need someone on the inside to guide you.

aurora97 is right, it is illegal to collect money or fund from the public without SC approval.

Once you get the approval from SC, then it can be done, it is just as same as mutual fund or UT.

Attaining the licence and approval by SC is not easy, as you need to have a proven track record. Also, you will need a huge backup of cash in case anything goes wrong. That is why you see most of the players are banks or insurance companies.
Since you are so interested in "pooling" the public's money, why don't you consider joining a unit trust company and start marketing unit trust?
No headache and no pressure

My opinion...

Easy is more an over-statement, rediculous would be more accurate to describe the situation. Most smaller brokers have already been eatten or torn apart by larger peers in the industry, all because this regulatory bodies hold on to the brokers license.

This two regulatory bodies have godlike powers, they r always right and brokers always wrong. One does the talking, while another does the whipping. Strictly no carrots if u do anything right, they always must find some shit on a broker be4 they are satisfied.

"They" are moving towards a more self reliant and shifting responsibility to brokers and denying any responsibility on their part and expect brokers to spoon feed them, everytime there is a problem rather than contributing ideas.

how about collect money from relatives and friends??

will offense to the law also??

how is the legal process of starting a hedge fund in Malaysia? is there special regulation for this?

Only if thee collection is for the purpose in investment schemes...

say u have a pool of friends, every put Rm 50,000 and you invest it in the market that is a form of fund management.

No offence collecting debt ... but it depends on the intention at the end.

If u collect for the purpose of MLM or Stolen goods or Investment link Scheme etc...

---

Added on April 10, 2008, 10:59 amgo to Sc.com.my , seach for Licensing Handbook and refer to Fund Management.

you need license for the person running the organisation and also license for the organisation...

Other special requirements...

they might require you to have market experience, its a ver controlled market so not everyone can enter into the market.



This post has been edited by aurora97: Apr 10 2008, 10:59 AM

[quote=aurora97,Apr 10 2008, 10:50 AM]
Only if thee collection is for the purpose in investment schemes...

say u have a pool of friends, every put Rm 50,000 and you invest it in the market that is a form of fund management.

No offence collecting debt ... but it depends on the intention at the end.

If u collect for the purpose of MLM or Stolen goods or Investment link Scheme etc...

---

Added on April 10, 2008, 10:59 am


my english not so good... not so clear about ur explanation..sorry

so that means it is offense to law if i collect from my fren and relatives for investing purpose??

[quote=chin20350,Apr 15 2008, 09:31 PM]
[quote=aurora97,Apr 10 2008, 10:50 AM]
Only if thee collection is for the purpose in investment schemes...

say u have a pool of friends, every put Rm 50,000 and you invest it in the market that is a form of fund management.

No offence collecting debt ... but it depends on the intention at the end.

If u collect for the purpose of MLM or Stolen goods or Investment link Scheme etc...

---

Added on April 10, 2008, 10:59 am
my english not so good... not so clear about ur explanation..sorry

so that means it is offense to law if i collect from my fren and relatives for investing purpose??

[/quote]

yes.

oh my god.....
tat also consider as offence to law ah.....
i thought it was just a small matter.....

if u dont tell, no one in that group of ppl complain or got disupute than ur ok, but if there is dispute and they lapor police sure will kena kau kau

what if we start a sdn bhd, collect capital & invest in usa equities?
all shareholders to sign letter confirming & understanding risk involve thru a lawyer
is it also haram? thanx in advance

Someone trying to Warren Buffet here. No offence, but WB starting via parttnership status in USA.

If someone still inspired to be the greatest WB - why not horn your stocks pick skill first from your backyard or garage or wherever it maybe.

LYN seniors are right. No offence.

What if you started a partnership, all the partners contributed capital for the company, and the company decided to invest in the stock market ?


This post has been edited by wodenus: Oct 24 2009, 11:34 PM