I am in the ideation phase of a startup where we enable retail investors to take part in the film and entertainment industry investments. I am planning on naming it “FentX”- F for Film, ent for entertainment and X for exchange.
This platform would enable retail investors invest and trade their equity in project among other users in the platform. I feel this would enable a breakthrough in the number of investors in this industry. Imagine being able to invest in films and music and capitalizing on the public interest around each particular project which fluctuates with trends, mainly on social media.
For this idea to come to gain initial traction, the following areas have to be worked on:
Cyber resilience of the platform
Meeting of regulatory compliances
Transparent Due Diligence reports on the investment opportunities present to the users.
I have a submitted the idea in detail through the form given by Rainmatter. But i’d like to refine this idea further with then help of the readers.
I have a same idea namely “CelebX”, i.e. Celebrity Index, a platform where Celebrities can list themselves and fans/investors can trade their stocks based various factors.
Hello sivanremesh - I would like to understand more on this. Would you be able to provide information on if you are still pursuing this idea ? Or would you be interested in a coversation on this. Let me know. You can contact me on Linkedin - Shreelakshmee R Kashyap
The idea of FentX - a platform that allows retail investors to invest in and trade equity in films, music, and entertainment projects has strong potential to democratize an industry traditionally dominated by studios and high-net-worth investors. However, to move from ideation to execution, there are three pillars that must be developed carefully: regulatory compliance, cyber resilience, and transparent due diligence.
Regulatory Compliance
Building a platform like FentX requires compliance with multiple Indian regulatory frameworks governing securities, media, and digital finance.
Financial Market Regulations (SEBI):
Since FentX will allow users to buy shares or equity in film projects and trade them, it will likely fall under SEBI’s crowdfunding and alternative investment norms.
You may need to register under SEBI’s Alternative Investment Fund (AIF) or Capital Market Intermediary framework to legally pool investor funds and distribute investment returns.
If fractional ownership of creative IPs (e.g., songs or films) is offered as a “security,” SEBI approval will be required before public participation.
Entertainment and Media Law:
Compliance under the Cinematograph Act, 1952, IT Act, 2000, and the Intermediary Guidelines Rules (2021) will be essential for handling digital rights, IP licensing, and preventing content-related disputes.
Company and Tax Compliance:
Register your entity with the Ministry of Corporate Affairs (MCA) as a Private Limited Company or LLP.
Obtain PAN, TAN, GST, and necessary FDI filings if foreign investors are allowed.
Employ contract management, copyright assignments, and talent release forms to safeguard all stakeholder interests.
Cyber Resilience
A platform handling financial investments and media rights must meet high cybersecurity standards.
Adopt end-to-end encryption for transactions and personal data.
Ensure compliance with India’s Digital Personal Data Protection Act (2023).
Obtain cybersecurity certification under ISO 27001 and conduct periodic penetration testing.
Include multi-factor authentication and AML/KYC checks per RBI and SEBI norms for digital finance platforms.
Transparent Due Diligence
Trust and clarity will drive early adoption among retail investors.
Introduce a Film Investment Whitepaper for each project, disclosing:
Project budgets, expected ROI, team credentials, and IP ownership.
Risk disclosures and independent valuation audits.
Build a rating or scoring system for film projects based on historical performance and real-time market analytics—linking social media interest to valuation trends, much like a “sentiment index” for entertainment.
Strategic Next Steps
To refine FentX further:
Consult legal experts in securities and IP law to develop a compliant structure.
Partner with a registered film fund or AIF Category II to test proof of concept.
Develop an MVP platform focusing on safe, simulated film equity trading to gauge user traction before public launch.
Prepare due diligence templates and an investor education module to build credibility.
Your concept lies at the intersection of FinTech and MediaTech, making it a promising niche—but also one requiring meticulous legal navigation and strong technical backing.
