You can see the rules and regulations in other jurisdictions.
The traditional mutual funds industry in India (discussed in Section IV) is increasingly relying on fintech solutions for distributing its products, including online platforms to transact seamlessly. Further, many fintech start-ups are innovating in the financial advisory space through automated tools and algorithms for aiding in analytics and investment decisions (with reduced human intervention). Depending on the nature of services, investment advisers and asset management and mutual fund companies in India are required to comply with the securities regulations of the SEBI for investment advisers (the IA Regulations) and mutual funds (the MF Regulations), as amended periodically, and that apply uniformly to both traditional and automated service models. In fact, SEBI has clarified that investment advisers using automated tools cannot electronically acquire consent from their customers while entering into investment advisory agreements, as mandated by the IA Regulations.1
The business of providing credit information services is regulated in India under the Credit Information Companies (Regulations) Act, which provides a framework to facilitate efficient distribution of credit, including a registration requirement for such companies.1
Public issue and listing of debt securities are regulated in India under the SEBI (Issue and Listing of Debt Securities) Regulations. Trading in debt securities in a secondary market is permitted after these securities are listed on one or more recognised stock exchanges and subject to compliance with the conditions prescribed in the relevant listing agreement and as specified periodically by the SEBI. Moreover, fintech companies accepting assignment of receivables, or facilitating lending against the security of receivables (barring banks and NBFCs providing debt against the security of receivables in the ordinary course of business), may trigger the Factoring Regulation Act, and may need to register as NBFC-factors.1
Fintech players see huge potential in the Indian market, owing to the large population and proliferation of cheap internet services. An untapped market for these players is that of the lower-income groups that require financial services but cannot avail these from traditional banks on account of poor credit scores or lack of access. This has given rise to new fintech models such as Toffee Insurance's bite-sized insurance cover for dengue or GramCover's insurance for farmers. These models are built around financial inclusion through the provision of flexible payment models. However, these ventures currently operate in a realm of legal uncertainty.1
You can launch your platform by paying $5000 initially and the rest after 6-12 months if your business grows