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		<title>SEBI’s New ICDR Rules 2025: What Every Investor Must Know!</title>
		<link>https://muds.co.in/sebis-new-icdr-rules-2025-what-every-investor-must-know/</link>
		
		<dc:creator><![CDATA[m0dsAdmn]]></dc:creator>
		<pubDate>Wed, 19 Mar 2025 12:41:32 +0000</pubDate>
				<category><![CDATA[SEBI Guidelines]]></category>
		<category><![CDATA[ICDR Rules 2025]]></category>
		<category><![CDATA[SEBI]]></category>
		<guid isPermaLink="false">https://muds.co.in/?p=19766</guid>

					<description><![CDATA[<p>The Securities and Exchange Board of India (SEBI) has introduced fresh changes in its Issue of Capital and Disclosure Requirements (ICDR) Regulations, 2025. Sounds complicated? Don’t worry. We’re here to break it down in the simplest way possible so you can understand how it affects investors, companies, and the stock market. NOTIFICATION States In exercise [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/sebis-new-icdr-rules-2025-what-every-investor-must-know/">SEBI’s New ICDR Rules 2025: What Every Investor Must Know!</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p><span style="font-weight: 400;">The Securities and Exchange Board of India (SEBI) has introduced fresh changes in its Issue of Capital and Disclosure Requirements (ICDR) Regulations, 2025. Sounds complicated? Don’t worry. We’re here to break it down in the simplest way possible so you can understand how it affects investors, companies, and the stock market.</span></p>
<h3><b>NOTIFICATION States</b></h3>
<p><span style="font-weight: 400;">In exercise of the powers conferred by section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018, namely: These regulations may be called the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2025. They shall come into force on March 4, 2025, except for the provisions relating to the expedited allocation of unsubscribed portion in rights issues, which shall come into force on April 4, 2025.</span></p>
<p><span style="font-weight: 400;">The complete text of these regulations shall be available on the website of the Securities and Exchange Board of India (www.sebi.gov.in).</span></p>
<p><b>Effective Date</b><span style="font-weight: 400;">: March 4, 2025</span><span style="font-weight: 400;"><br />
</span> <b>Rights Issue Changes Apply From</b><span style="font-weight: 400;">: April 4, 2025</span></p>
<p><b>By Order of the Board</b><b><br />
</b><span style="font-weight: 400;"> Secretary, Securities and Exchange Board of India</span></p>
<h3><b>What is SEBI’s ICDR Regulation?</b></h3>
<p><span style="font-weight: 400;">Before we get into the updates, let’s first understand what ICDR regulations are. These rules govern how companies raise money from the public through Initial Public Offerings (IPOs), rights issues, and other capital-raising methods. SEBI ensures that companies follow these rules to maintain fairness, transparency, and investor protection.</span></p>
<p><span style="font-weight: 400;">Now, SEBI has introduced some major updates in 2025 to make the capital-raising process faster and more investor-friendly. Let’s dive in.</span></p>
<h3><b>Key Updates in SEBI ICDR (Amendment) Regulations, 2025</b></h3>
<h4><b>1. Offer for Sale (OFS) Limitations in SME IPOs</b></h4>
<ul>
<li style="font-weight: 400;" aria-level="1"><b>New Rule</b><span style="font-weight: 400;">: SEBI has set a 20% limit on the Offer for Sale (OFS) in Small and Medium Enterprises (SME) IPOs. This ensures that the existing shareholders cannot offload more than 50% of their pre-IPO holdings.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Why This Matters</b><span style="font-weight: 400;">: This change is aimed at ensuring more equity remains with the company and its promoters, providing stability post-IPO.</span></li>
</ul>
<h4><b>2. General Corporate Purpose (GCP) Capping</b></h4>
<ul>
<li style="font-weight: 400;" aria-level="1"><b>New Rule</b><span style="font-weight: 400;">: GCP is now capped at 15% or ₹10 crores, whichever is lower. Additionally, the combined GCP and unidentified acquisitions are capped at 25% of the issue size.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Why This Matters</b><span style="font-weight: 400;">: This ensures that more funds raised through IPOs go toward actual business expansion rather than vague corporate purposes, improving investor confidence.</span></li>
</ul>
<h4><b>3. Lock-In Period for Promoters</b></h4>
<ul>
<li style="font-weight: 400;" aria-level="1"><b>New Rule</b><span style="font-weight: 400;">:</span>
<ul>
<li style="font-weight: 400;" aria-level="2"><b>Minimum Promoter Contribution (MPC)</b><span style="font-weight: 400;">: 20% of post-issue capital is locked-in for 3 years.</span></li>
<li style="font-weight: 400;" aria-level="2"><b>Excess MPC</b><span style="font-weight: 400;">:</span>
<ul>
<li style="font-weight: 400;" aria-level="3"><span style="font-weight: 400;">50% of the excess is released after 1 year.</span></li>
<li style="font-weight: 400;" aria-level="3"><span style="font-weight: 400;">Remaining 50% after 2 years.</span></li>
</ul>
</li>
</ul>
</li>
<li style="font-weight: 400;" aria-level="1"><b>Why This Matters</b><span style="font-weight: 400;">: This lock-in ensures that promoters remain committed to the company post-IPO, which aligns their interests with the shareholders.</span></li>
</ul>
<h4><b>4. Increased Minimum Application Lot Size</b></h4>
<ul>
<li style="font-weight: 400;" aria-level="1"><b>New Rule</b><span style="font-weight: 400;">: Individual investors must now buy at least 2 lots in <a href="https://muds.co.in/sme-ipo/">SME IPOs</a>, promoting serious participation. The number of allottees has increased from 50 to 200.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Why This Matters</b><span style="font-weight: 400;">: This change ensures that more investors participate actively in the <a href="https://muds.co.in/navigating-the-maze-a-simplified-guide-to-the-sme-ipo-process/">IPO process</a>, improving liquidity and market depth.</span></li>
</ul>
<h4><b>5. Restriction on Loan Repayment</b></h4>
<ul>
<li style="font-weight: 400;" aria-level="1"><b>New Rule</b><span style="font-weight: 400;">: SMEs cannot use IPO funds to repay loans taken by promoters or related parties.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Why This Matters</b><span style="font-weight: 400;">: This prevents misuse of funds raised through IPOs and ensures the funds are directed toward genuine business needs.</span></li>
</ul>
<h4><b>6. Public Comments on DRHP</b></h4>
<ul>
<li style="font-weight: 400;" aria-level="1"><b>New Rule</b><span style="font-weight: 400;">: SME IPO Draft Red Herring Prospectus (DRHP) now requires a 21-day public review, with newspaper advertisements within 2 days of filing the DRHP and a QR code for seamless investor access.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Why This Matters</b><span style="font-weight: 400;">: This change ensures more transparency and makes it easier for investors to access key information about an IPO.</span></li>
</ul>
<h4><b>7. Fundraising Through Further Issues</b></h4>
<ul>
<li style="font-weight: 400;" aria-level="1"><b>New Rule</b><span style="font-weight: 400;">: SMEs can raise further capital without shifting to the main board, provided they comply with SEBI (LODR) regulations.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Why This Matters</b><span style="font-weight: 400;">: This gives SMEs greater flexibility in raising capital while maintaining their position on the SME platform.</span></li>
</ul>
<h4><b>8. Mandatory 1-Year Existence for Converted Entities</b></h4>
<ul>
<li style="font-weight: 400;" aria-level="1"><b>New Rule</b><span style="font-weight: 400;">: SMEs must have completed 1 financial year as a company after converting from a proprietorship, partnership, or LLP before filing for an IPO.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Why This Matters</b><span style="font-weight: 400;">: This ensures that newly converted entities have a stable operational track record before going public.</span></li>
</ul>
<h4><b>9. Change in Promoter Holding</b></h4>
<ul>
<li style="font-weight: 400;" aria-level="1"><b>New Rule</b><span style="font-weight: 400;">: A 1-year waiting period is required for filing offer documents if an SME undergoes a major promoter change exceeding 50% ownership.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Why This Matters</b><span style="font-weight: 400;">: This regulation provides a cooling-off period to ensure that major ownership changes do not disrupt the IPO process.</span></li>
</ul>
<h4><b>10. Profitability Requirements</b></h4>
<ul>
<li style="font-weight: 400;" aria-level="1"><b>New Rule</b><span style="font-weight: 400;">: SME IPOs require ₹1 crore EBITDA in any 2 of the past 3 years, ensuring financial stability.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Why This Matters</b><span style="font-weight: 400;">: This ensures that SMEs have a solid financial history before attempting to raise funds through an IPO.</span></li>
</ul>
<h4><b>11. Monitoring Agency</b></h4>
<ul>
<li style="font-weight: 400;" aria-level="1"><b>New Rule</b><span style="font-weight: 400;">: Appointment of a monitoring agency is mandatory if the issue size exceeds ₹50 crores. If the monitoring agency is not mandatory, a certificate from the statutory auditor (along with quarterly financial statement filings with the SME exchange) is required for fund utilization, especially where working capital exceeds ₹5 crores.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Why This Matters</b><span style="font-weight: 400;">: This ensures transparency in the use of IPO proceeds, helping to safeguard investor interests.</span></li>
</ul>
<h3><b>How Do These Changes Benefit You as an Investor?</b></h3>
<ul>
<li style="font-weight: 400;" aria-level="1"><b>More Transparency</b><span style="font-weight: 400;">: No hidden legal issues, and clearer financial disclosures help you understand the risks.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Faster Processes</b><span style="font-weight: 400;">: Rights issues won’t get stuck, and SMEs can raise funds efficiently.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Better Decision-Making</b><span style="font-weight: 400;">: Clearer financial disclosures and promoter commitments give you the tools to make informed investment choices.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Improved Trust</b><span style="font-weight: 400;">: Stronger investor protection measures ensure your investments are safer.</span></li>
</ul>
<h3><b>Final Thoughts – Why This is a Big Deal</b></h3>
<p><span style="font-weight: 400;">The SEBI ICDR (Amendment) Regulations, 2025 are designed to make investing safer, faster, and more transparent. With better disclosures, investors can make informed choices, and companies can raise funds efficiently. Whether you’re an investor looking for safer IPOs or a company raising capital, these new SEBI rules are a game-changer.</span></p>
<p><span style="font-weight: 400;">Stay updated. Stay informed. Invest wisely.</span></p>
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<p><a href="https://muds.co.in/how-to-launch-ipo-in-india-a-complete-guide-for-startups-and-established-companies/"><b>https://muds.co.in/how-to-launch-ipo-in-india-a-complete-guide-for-startups-and-established-companies/</b></a></p>
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<p><a href="https://muds.co.in/choosing-the-right-ipo-services-key-considerations-for-going-public/"><b>https://muds.co.in/choosing-the-right-ipo-services-key-considerations-for-going-public/</b></a></p>
<p>The post <a rel="nofollow" href="https://muds.co.in/sebis-new-icdr-rules-2025-what-every-investor-must-know/">SEBI’s New ICDR Rules 2025: What Every Investor Must Know!</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
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		<title>SEBI Simplifies Share and Mutual Fund Inheritance Rules for Family</title>
		<link>https://muds.co.in/sebi-simplifies-share-and-mutual-fund-inheritance-rules-for-family/</link>
		
		<dc:creator><![CDATA[m0dsAdmn]]></dc:creator>
		<pubDate>Tue, 05 Dec 2023 09:19:28 +0000</pubDate>
				<category><![CDATA[SEBI]]></category>
		<category><![CDATA[SEBI inheritance rules]]></category>
		<guid isPermaLink="false">https://muds.co.in/?p=18488</guid>

					<description><![CDATA[<p>Have you worked hard over the years to build your share or mutual fund portfolio, but worried about what will happen to the investments after you? Well, worry no more! SEBI has issued simplified inheritance guidelines that make it easier for families to pass on share/MF assets to legal heirs. Your hard-earned assets are meant [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/sebi-simplifies-share-and-mutual-fund-inheritance-rules-for-family/">SEBI Simplifies Share and Mutual Fund Inheritance Rules for Family</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p><span style="font-weight: 400;">Have you worked hard over the years to build your share or mutual fund portfolio, but worried about what will happen to the investments after you? Well, worry no more! SEBI has issued simplified inheritance guidelines that make it easier for families to pass on share/MF assets to legal heirs.</span></p>
<p><span style="font-weight: 400;">Your hard-earned assets are meant to be enjoyed not just by you but also bequeathed to future generations. This belief has driven Indian families for time immemorial when it comes to succession planning and inheritance.</span></p>
<p><span style="font-weight: 400;">However, the practical difficulties in ensuring one&#8217;s share investments and mutual fund holdings are seamlessly passed on to rightful heirs have often played spoilsport. Opaque procedures, burdensome paperwork and lack of standardization in rules have hindered smooth transfer of portfolio wealth from ancestors to descendants.</span></p>
<p><span style="font-weight: 400;">In a major respite that stands to benefit crores of retail investors, SEBI recently announced simplified, progressive guidelines to ease the nomination and transmission protocols for securities and mutual fund units. Now, investors can relax knowing their painstakingly built share/MF investment legacy can be continued hassle-free by family.</span></p>
<p><span style="font-weight: 400;">This blog post explains SEBI&#8217;s investor-friendly steps to standardize and digitize processes around assigning portfolio assets to nominees as well as claiming inheritance. We simplify key terminologies like nomination, transmission, eKYC authentication that underpin the new transparent protocols. Common real-life inheritance scenarios are elucidated so readers understand implications on their specific situations. Queries around timelines, taxes, NRI investors etc. are addressed through FAQs.</span></p>
<p><span style="font-weight: 400;">Our aim is to equip readers with clarity on rule changes so India&#8217;s investing community can seamlessly pass the earnings baton to the next generation. Be it shares or mutual funds, may your hard work continue reaping dividends for family beyond your time!</span></p>
<p><span style="font-weight: 400;">This guide breaks down the new rules on nominations, transmission, documentation and procedures involved in seamless inheritance of your portfolio within the family. Read on to ensure your hard-earned wealth stays protected across generations!</span></p>
<h2><b>Easing the Journey of Passing on Your Investment Legacy</b></h2>
<p><span style="font-weight: 400;">Have you diligently built up your portfolio of shares and mutual funds over the decades to securely pass on this hard-earned wealth to your loved ones? Inheritance rules so far have proved tedious with opaque procedures and burdensome paperwork often acting as roadblocks for families to access rightful dues.</span></p>
<p><span style="font-weight: 400;">In a major positive move to benefit retail investors, SEBI has issued simplified nomination and transmission guidelines that facilitate smooth transfer of listed securities and MF units to legal heirs. Read on to understand the key changes that allow you to seamlessly bequeath your portfolio legacy to the next generation!</span></p>
<p><b>Demystifying Key Terminologies on Inheritance</b></p>
<p><span style="font-weight: 400;">First, let’s get clear on the exact meanings of certain common terms that underpin legacy transfer of investments:</span></p>
<p><span style="font-weight: 400;">Nomination &#8211; The act of designating one or more persons as beneficiaries entitled to receive stocks, mutual funds etc. held in your demat account upon death of the original asset holder.</span></p>
<p><span style="font-weight: 400;">Transmission &#8211; The actual process of transferring securities from the deceased person&#8217;s portfolio to the account(s) of nominee(s) as per succession certificate/Will or as per applicable law.</span></p>
<p><span style="font-weight: 400;">Now let us explore the enhanced processes SEBI has established around nomination and transmission to ease intergenerational transfer of investments for families.</span></p>
<ol>
<li><b> Flexible Nomination Facility Introduced</b></li>
</ol>
<p><span style="font-weight: 400;">Earlier, you could nominate only one person to eventually own the shares/mutual funds held – leading to issues later amongst heirs. Additional constraints existed on assignments to minors etc.</span></p>
<p><span style="font-weight: 400;">In its circular, SEBI has significantly enhanced nomination flexibility/simplicity:</span></p>
<ul>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Option to nominate multiple beneficiaries along with allocation of percentage entitlements clearly defined. For instance 40% to spouses, 30% each to 2 children.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Nomination for minors allowed through guardians under simplified docs.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">One-time nomination can be provided which applies automatically across all securities/MFs held. Avoid the hassle of nominating every time you purchase new assets.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">New demat accounts require nomination details to be captured upfront by broker/DPs. Can update anytime.</span></li>
</ul>
<p><span style="font-weight: 400;">So the new rules allow investors better nominate specific family members as inheritors through flexible allocation percentages on a one-time basis across portfolios.</span></p>
<ol>
<li><b> Standardized, Simplified Transmission Process</b></li>
</ol>
<p><span style="font-weight: 400;">Earlier, companies had varying local rules for documents needed, formats, eligibility etc. causing confusion on claims for families. Now, processes standardized:</span></p>
<p><b>A) Securities holding below ₹5 lacs</b></p>
<ul>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Only specified documents like proof of holder&#8217;s death, claimant&#8217;s identity/address proof and nomination certificate required across firms. No ad hoc submissions. Listed in SEBI circular.</span></li>
</ul>
<p><b>B) Holdings over ₹5 lacs</b></p>
<ul>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Additional stipulation is furnishing PAN details of nominee(s)/claimant(s) for enhanced identity verification by RTAs.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Standardized format given to apply for transmission that firms cannot modify or add fields to. Reduces paperwork.</span></li>
</ul>
<p><span style="font-weight: 400;">By bringing in uniformity, transparency and simplification for transmission cases up to 5 lacs at least, SEBI move promises major ease of processes for common retail investors.</span></p>
<p><span style="font-weight: 400;">III. Digitization of Transmission Process</span></p>
<p><span style="font-weight: 400;">In another major positive, SEBI has also introduced digitalization of transmission procedures via Aadhaar e-KYC authentication route as an alternative to physical documents submission:</span></p>
<ul>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Nominees can initiate transmission requests online supported through Aadhaar validation instead of needing to present in-person or send physical papers.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Standard formats introduced which allow nominee details, entitlement percentages, bank account details for electronic transfer of securities etc. to be captured digitally.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Allows remote initiation and faster claims processing &#8211; boon for families needing urgent access to finances or wanting to consolidate holdings.</span></li>
</ul>
<p><span style="font-weight: 400;">So e-KYC authenticated transmission promises to reduce paperwork and delays significantly in the digital era through electronic validation mechanisms for inheritance cases.</span></p>
<p><b>Demystifying Key Terminologies</b></p>
<p><span style="font-weight: 400;">First, let’s get the basic terminologies clear:</span></p>
<p><b>Nomination &#8211; </b><span style="font-weight: 400;">The process of designating one or more persons to inherit your investment assets (shares/mutual funds) if something happens to you.</span></p>
<p><b>Transmission &#8211; </b><span style="font-weight: 400;">The actual transfer of shares/mutual funds to your nominee(s) or legal heirs as per your Will or succession laws upon your demise.</span></p>
<p><span style="font-weight: 400;">Let’s explore the enhanced nomination and transmission processes now made simpler by SEBI.</span></p>
<p><b>1. Enhanced Nomination Facility</b></p>
<ul>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Multiple nominees can be assigned proportional percentages now instead of the earlier &#8216;either-or&#8217; rule. For instance 40% to spouses, and 30% each for 2 kids.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Nomination mandatory for new demat accounts &#8211; ensures your shares are passed on and don&#8217;t get stuck later.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">One-time nomination can be provided by investors during account opening which will apply to all holdings. Saves the hassle of nominating everytime you purchase new shares.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Nominee details to be captured by broker/RTA while opening the account. Can be amended/updated digitally later anytime.</span></li>
</ul>
<p><span style="font-weight: 400;">The enhanced nomination norms bring flexibility, digitization and ease for investors to secure the family&#8217;s future.</span></p>
<p><b>2. Simplified Transmission Process</b></p>
<p><span style="font-weight: 400;">Earlier, companies had their own procedures and requirements for documents which differed from registrar to registrar. Now, SEBI has standardized transmission requirements across companies/RTAs:</span></p>
<p><b>A) For Securities Holding below Rs 5 lacs:</b></p>
<p><span style="font-weight: 400;">Only a simplified standardized format given in SEBI circular needs to be submitted by claimant(s) for transmission along with the following documents:</span></p>
<ol>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Proof of Death of Security Holder</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Proof of Relationship of Claimant with the Security Holder</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Bank Account Proof of the Nominee/Claimant</span></li>
</ol>
<p>&nbsp;</p>
<p><b>B) For Securities Holding above Rs 5 lacs:</b></p>
<p><span style="font-weight: 400;">Apart from the 3 documents above, PAN Card copy of claimant/nominee will also be required.</span></p>
<p><b>C) Timeline for Transfer: </b><span style="font-weight: 400;">Once claimant submits complete documents, the company/RTA have to complete transmission and credit securities to the nominee&#8217;s demat account within 15 days.</span></p>
<p><span style="font-weight: 400;">So now nominee/claimants have standard procedures and common document checklist for inheritance across all companies and RTAs for timely transmission. Fuss-free!</span></p>
<p>&nbsp;</p>
<p><b>Digitization of Transmission Process</b></p>
<p><span style="font-weight: 400;">In another major move to enhance investor experience, SEBI has also introduced digitization of transmission requests through the eKYC Aadhaar process. Here is how it helps:</span></p>
<ul>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Nominees can submit transmission documents and initiate requests digitally from anywhere without needing to present in person.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">RTAs/companies will use claimant&#8217;s Aadhaar ID for electronic verification vs physical document checks.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Helps speed up verification and transmission to within a few days instead of weeks earlier.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Convenient and paperless for inheritors &#8211; critical in current times.</span></li>
</ul>
<p><span style="font-weight: 400;">So digital transmission through eKYC authentication promises timely, contactless transmission aligned to the digital era.</span></p>
<h2><b>Common Scenarios of Share/MF Inheritance &amp; Applicable Rules</b></h2>
<p><span style="font-weight: 400;">Let us understand how the standardized SEBI guidelines apply to some common real-life inheritance situations:</span></p>
<p><b>Scenario 1: Single Shareholder/Investor (no existing nomination)</b></p>
<p><span style="font-weight: 400;">Samir held shares worth Rs 10 lakhs in Infosys Ltd and few mutual funds which he wanted his two children Ria &amp; Rahul to inherit. Unfortunately Samir did not make any nomination. In such a case:</span></p>
<ul>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">As per new SEBI rules, Ria &amp; Rahul being Class I heirs (Direct family of original holder) can inherit Samir&#8217;s portfolio by submitting specified documents like death certificate, relationship proof, bank account proof etc. within stipulated claim timelines to company RTA.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">If the total holding amount is below Rs 5 lacs, simplified claim format prescribed by SEBI needs to be submitted.</span></li>
</ul>
<p><b>Scenario 2 : Joint Shareholders (parents) with one nominee</b></p>
<p><span style="font-weight: 400;">Ravi and Renu held ICICI Bank shares worth Rs 8 lakhs jointly with nomination assigned to their son Raj. In such case, after death of both Ravi and Renu:</span></p>
<ul>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Raj being the designated nominee, inherits the entire shares seamlessly. Only submission of parents&#8217; death certificates along with his identity/bank account proof needed to claim the shares with simplified forms.</span></li>
</ul>
<p><b>Scenario 3: Single Investor with Multiple Nominees</b></p>
<p><span style="font-weight: 400;">Kumar assigned 60% of his HDFC mutual funds to brother Ramesh and 40% to sister Reeta.</span></p>
<ul>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">As per new SEBI rules allowing proportional split to multiple nominees, Ramesh and Reeta can claim 60% and 40% of funds respectively on Kumar&#8217;s death through submission of standardized documents.</span></li>
</ul>
<p><span style="font-weight: 400;">The simplified rules now accommodate various scenarios providing legal heirs means to claim rightful share of investments smoothly.</span></p>
<h2><b>Claiming Unclaimed Shares or Dividends</b></h2>
<p><span style="font-weight: 400;">Another relief is that SEBI eased rules for claiming unclaimed shares, dividends and interest amounts of deceased shareholders transferred to IEPF after 7 years:</span></p>
<ul>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Earlier only a legal heir or nominee could file a refund claim with IEPF authority. Complex paperwork.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">NOW the demat account holder, (if different from original shareholder), can directly file a claim with company/RTA supported by simplified documents.</span></li>
</ul>
<p><span style="font-weight: 400;">This saves heirs effort and cost of applying through the IEPF route.</span></p>
<h2><b>Unclaimed Investor Dues Made Easier to Recover</b></h2>
<p><span style="font-weight: 400;">Over the lifetime of share investments, there may arise situations where dividends or other corporate benefits remain unclaimed by retail shareholders due to reasons like outdated contact information, change of location etc.</span></p>
<p><span style="font-weight: 400;">As per current norms, any dividends unpaid or unclaimed for a continuous period of 7 years have to be transferred by companies to the Investor Education and Protection Fund (IEPF) administered by the Ministry of Corporate Affairs. The corresponding shares are also moved to an IEPF demat account thereafter.</span></p>
<p><span style="font-weight: 400;">Until now, for original shareholders to recover these unclaimed amounts or shares after transfer to IEPF, their legal heirs or nominees had to file an online claim in the prescribed Form IEPF-5 along with verification documents directly with the IEPF authorities. This process was cumbersome for common investors.</span></p>
<p><i><span style="font-weight: 400;">However, in a welcome move, SEBI has simplified norms for investors whose shares/holdings may have elapsed into the IEPF:</span></i></p>
<ul>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">As per new process, the demat account holder, even if they differ from the original shareholder, can directly approach the company&#8217;s RTA for initiating claim of unclaimed shares/dividends/interest from the IEPF.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">They need to simply submit a copy of the death certificate of the original holder along with standard KYC documents like identity proof, address proof etc as required by the RTA/Company.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">This direct route for refund through the company/RTA supersedes the earlier protocol of filing forms with the IEPF Authority, thereby saving legatees effort and cost.</span></li>
</ul>
<p><span style="font-weight: 400;">The simplified norms will come as a relief for common investors who often find it difficult to manage the complex IEPF claim procedures and can now expedite recovery of what rightfully belongs to them or their families.</span></p>
<p><span style="font-weight: 400;">So ensure your investments work harder for you by keeping contacts updated with portals and registrars. For unclaimed amounts accruing to IEPF, the direct refund route promises faster access now to your hard-earned capital and dividends.</span></p>
<h2><b>Key Takeaways from New SEBI Inheritance Rules</b></h2>
<ul>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Nomination mandatory for new demat accounts &#8211; ensures legacy transfer.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Multiple nominees can be assigned with percentage splits.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Standardized format and common documents required for transmission by RTA/company across shareholdings below 5 lacs.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Digitization introduced for transmission through eKYC for enhanced ease.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Legal heir exempted from IEPF refund claim if amount in separate demat account etc.</span></li>
</ul>
<p><span style="font-weight: 400;">So updated rules drastically improve succession experience for both retail equity investors and mutual fund holders while securing family&#8217;s rights.</span></p>
<h2><b>Common Queries on Share/MF Inheritance Simplified!</b></h2>
<p><span style="font-weight: 400;">Still have some doubts on how the new SEBI guidelines impact your specific share/MF inheritance situation? Here are some common queries simplified:</span></p>
<p><b>I holds shares jointly. Is nomination required?</b></p>
<p><span style="font-weight: 400;">It is advisable to have nomination even for joint holdings as it clearly assigns the asset to designated nominee(s) in case of any unfavorable event. Smoothens transmission.</span></p>
<p><b>Can I assign multiple nominees to inherit my demat assets?</b></p>
<p><span style="font-weight: 400;">Yes, SEBI rules now permit allocation of securities holding percentage wise amongst multiple nominees uniquely. Removes constraints of the old system.</span></p>
<p><b>What is the process if the nominee is a minor?</b></p>
<p><span style="font-weight: 400;">If the nominee is a minor at the time of investor&#8217;s death, the guardian can submit relevant KYC documents like bank account proof, birth certificate in addition to executing transmission on behalf of the minor.</span></p>
<p><b>How much time do I have to claim my inherited shares/funds?</b></p>
<p><span style="font-weight: 400;">The stipulated timeline to raise claims is 3 years from the date of holders&#8217; demise. But it is prudent not to delay so that transmission formalities can be completed when markets are stable.</span></p>
<p><b>Can NRIs also nominate for demat accounts?</b></p>
<p><span style="font-weight: 400;">Yes, NRIs and OCI holders can also nominate individuals to inherit the assets in their Indian demat accounts by providing corresponding KYC documents and details.</span></p>
<p><span style="font-weight: 400;">So stay invested with your portfolio and heirs! Simplified norms by SEBI promise smooth legacy transfer of your share and mutual fund investments to the next generation. Cheers to carefree returns&nbsp;</span></p>
<p><b>FAQs on Share/Mutual Fund Transmission for Investors</b></p>
<p><b>Q1. Can a NRI transfer shares in India through gift or will?</b></p>
<p><span style="font-weight: 400;">Yes, an NRI holding shares in Indian companies can transfer those assets to relatives or legal heirs through gift or bequest of their will. The beneficiary has to produce documents establishing relationship to the original shareholder along with PAN card, identity proof and signature verification for seamless transmission.</span></p>
<p><b>Q2. What tax is applicable if I inherit shares as a legal heir?</b></p>
<p><span style="font-weight: 400;">No income tax or capital gains tax is applicable if shares are inherited from a relative through will or succession. As per Section 56(vii) of Income Tax Act, property received from a relative without adequate consideration is exempted from tax. Relatives include the spouse, brother/sister of the taxpayer.</span></p>
<p><b>Q3. Can I delete or modify an existing nomination once made?</b></p>
<p><span style="font-weight: 400;">Yes, investors can modify an existing nomination for their demat accounts if they want to change nominees or update their allocation percentages. You can submit a request for deleting or change in nomination digitally to your DP anytime.</span></p>
<p><b>Q4: I bought shares under my wife&#8217;s demat account. Who gets rights to these shares after my death?</b></p>
<p><span style="font-weight: 400;">For shares purchased under your spouse&#8217;s demat account, they retain absolute right of ownership irrespective of source of funds. So upon your demise, your wife would be the rightful owner unless it is jointly held and has joint/secondary holder nomination specifically mentioned.</span></p>
<p><b>Q5. How can NRIs ensure smooth transition of assets to heirs in India?</b></p>
<p><span style="font-weight: 400;">NRI investors should ideally set up a Power of Attorney in favor of a trusted family member or CPA/lawyer in India so they can easily execute transmission formalities with RTA/companies locally upon applicant&#8217;s death overseas or if they relocate back permanently. Smoothens the process.</span></p>
<p>The post <a rel="nofollow" href="https://muds.co.in/sebi-simplifies-share-and-mutual-fund-inheritance-rules-for-family/">SEBI Simplifies Share and Mutual Fund Inheritance Rules for Family</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
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		<title>Private Limited Company Registration in Kolkata Via Online Method</title>
		<link>https://muds.co.in/private-limited-company-registration-in-kolkata-via-online-method/</link>
		
		<dc:creator><![CDATA[m0dsAdmn]]></dc:creator>
		<pubDate>Tue, 03 May 2022 08:52:16 +0000</pubDate>
				<category><![CDATA[Consulting]]></category>
		<category><![CDATA[Debt Recovery]]></category>
		<category><![CDATA[Directors Disqualification]]></category>
		<category><![CDATA[disqualification of directors]]></category>
		<category><![CDATA[Disqualifications of Directors]]></category>
		<category><![CDATA[disqualified directors]]></category>
		<category><![CDATA[Employee Stock Option Plan]]></category>
		<category><![CDATA[ESOP]]></category>
		<category><![CDATA[iepf]]></category>
		<category><![CDATA[Insolvency and Bankruptcy code]]></category>
		<category><![CDATA[insolvency education]]></category>
		<category><![CDATA[insolvency process]]></category>
		<category><![CDATA[Insolvency professional]]></category>
		<category><![CDATA[Insolvency Resolution]]></category>
		<category><![CDATA[Insolvency Resolution Process]]></category>
		<category><![CDATA[lost shares]]></category>
		<category><![CDATA[Micro Financing]]></category>
		<category><![CDATA[NBFC]]></category>
		<category><![CDATA[NBFC Incorporation]]></category>
		<category><![CDATA[nbfc registration]]></category>
		<category><![CDATA[NBFC Weekly Digest]]></category>
		<category><![CDATA[online posh training]]></category>
		<category><![CDATA[physical shares]]></category>
		<category><![CDATA[PoSH]]></category>
		<category><![CDATA[posh act]]></category>
		<category><![CDATA[posh act 2013]]></category>
		<category><![CDATA[posh law]]></category>
		<category><![CDATA[Preference Shares]]></category>
		<category><![CDATA[process to claim shares from iepf]]></category>
		<category><![CDATA[recover shares from iepf]]></category>
		<category><![CDATA[Recovery of Bad Debt]]></category>
		<category><![CDATA[Recovery of Debt]]></category>
		<category><![CDATA[recovery of shares]]></category>
		<category><![CDATA[recovery of shares from IEPF]]></category>
		<category><![CDATA[removal of director]]></category>
		<category><![CDATA[removal of director disqualification]]></category>
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		<category><![CDATA[restoration of DIN]]></category>
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		<category><![CDATA[sexual harassment of women at workplace]]></category>
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		<guid isPermaLink="false">https://muds.co.in/?p=13894</guid>

					<description><![CDATA[<p>Private Limited Company Registration in Kolkata&#160; In this post, we’ll look at how to register a business in Kolkata. Company registration is a procedure through which all businesses are registered on the MCA’s website (Ministry of Corporate Affairs). The Company Registration in Kolkata is a simple procedure, but it requires numerous procedures to complete. A [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/private-limited-company-registration-in-kolkata-via-online-method/">Private Limited Company Registration in Kolkata Via Online Method</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></description>
										<content:encoded><![CDATA[<h2>Private Limited Company Registration in Kolkata&nbsp;</h2>
<p>In this post, we’ll look at how to register a business in Kolkata. Company registration is a procedure through which all businesses are registered on the MCA’s website (Ministry of Corporate Affairs). The Company Registration in Kolkata is a simple procedure, but it requires numerous procedures to complete.</p>
<p>A Private Limited Company offers its stockholders legal protection and limited liability. A privaely held limited firm must have at least positions two working directors. A person can be both a director and a shareholder in a Private Limited Company. After receiving a Certificate of Incorporation, a Private Limited Company (PLC) can begin operations. Within 15 days following its application, a PLC can be implemented.</p>
<p>As a result, we will concentrate on the advantages and procedures of forming a Private Limited Company registrationin Kolkata in this post.</p>
<h2 data-fontsize="20" data-lineheight="24"><b>Advantages of forming a private firm company registration in Kolkata</b></h2>
<ol>
<li aria-level="1">A private limited company might have anything from two to fifty directors.</li>
<li aria-level="1">It is a legal autonomous body.</li>
<li aria-level="1">Directors have limited liability and are not directly responsible for the company’s operations.</li>
<li aria-level="1">Directors are only partially liable to creditors.</li>
<li aria-level="1">In the event of a default, the bank or creditors will sell the company’s assets rather than personal property.</li>
<li aria-level="1">The directors are eligible for tax benefits.</li>
<li aria-level="1">Suing or being sued in the name of a registered corporation is possible.</li>
<li aria-level="1">Companies that are registered have a higher chance of borrowing money.</li>
</ol>
<h2><b>Company Registration in Kolkata: Private Company Incorporation Checklist</b></h2>
<ul>
<li aria-level="1"><b>Directors:</b>&nbsp;For private company registration in Kolkata, a minimum of two directors is required, with one of them being a resident director.</li>
<li aria-level="1"><b>The investment</b>&nbsp;must be made in accordance with the business type, and there is no minimum capital investment necessary for a firm.</li>
<li aria-level="1">Inventive business name: The name of the firm must not be identical or confusingly similar to that of another company.</li>
<li aria-level="1"><b>Registered address:</b>&nbsp;Every business should have one.</li>
</ul>
<h2><b>Steps for Incorporation of the Company</b></h2>
<p><i>The following are the stages of forming a business using the RUN form:</i></p>
<ol>
<li aria-level="1"><i>After that, create a login account and log in.</i></li>
<li aria-level="1"><i>Enter the name you want to use and cross-reference it with the MCA database.</i></li>
<li aria-level="1"><i>If an established business wants to reverse its name, a CIN will be requested through the RUN e- form.</i></li>
<li aria-level="1"><i>The applicant must specify the name that he or she wishes to keep on file in case the firm’s name is changed or a new company is formed.</i></li>
<li aria-level="1"><i>Then he or she must submit the prospective company’s objects as well as any additional documents in support of the suggested name.</i></li>
</ol>
<h3><b>Limited Name Validity</b></h3>
<ul>
<li aria-level="1">For a new corporation, an authorised name is valid for 20 days from the date of approval.</li>
<li aria-level="1">60 days after the date of authorization for changing the name of an established corporation.</li>
</ul>
<h2><b>Steps for Private Company Registration in Kolkata</b></h2>
<h3><b>Step 1: Obtain DSC</b></h3>
<p>Because the process is online, a digital signature is required for the incorporation of a private limited company. Members and executives must have a legitimate Class II or Class III DSC.</p>
<h3><b>Step 2: Fill out an application for a DIN number.</b></h3>
<p>A directors must have a DIN and must apply for one on MCA if he does not already have one. A DIN number can be used to become a director in many&nbsp;<a href="https://timesofindia.indiatimes.com/blogs/voices/retrieve-your-lost-and-unclaimed-investment-made-in-shares-and-find-lost-shares-and-understand-the-process-of-recovering-them/?fbclid=IwAR2_cdzzvVYRtdMtNZw5qhHOwkPftQPP2kpDmj0358shoGMjcALSXi4pPY0">businesses</a>.</p>
<h3><b>Step 3: Submit an application for name approval</b></h3>
<p>At the time of establishment, the company’s name, as well as SPICe (INC-32) must be submitted for approval. If the name is rejected, it can be resubmitted.</p>
<h3><b>Step 4:&nbsp;</b>e-MoA (INC-33) and e-AoA are the fourth and final steps (INC-34)</h3>
<p>Previously, MoA and AoA had to be filed physically, but now they must be filed online on the MCA website. These papers must be digitally signed by the subscribers.</p>
<h3><b>Step 5: PAN and TAN applications</b></h3>
<p>After all of the paperwork have been completed, the applicant should consider applying for a PAN and TAN.</p>
<h3><b>Step 6: Certificate of Incorporation&nbsp;</b></h3>
<p>MCA &amp; RoC will analyse all of the documentation and issue a Certificate of Incorporation if they are pleased. The Certificate of Incorporation is a legal document that grants the firm legal standing.</p>
<h3><b>7th Step: Open bank Accounts</b></h3>
<p>The firm must create a bank account for any transactions in its name after receiving the certificate of incorporation.</p>
<p><b>In order to register a company in Kolkata, you’ll need the following documents</b></p>
<p>Documents required for company registration&nbsp; in Kolkata:</p>
<ol>
<li aria-level="1">For DSC&nbsp;</li>
<li aria-level="1">DIN (Director Identification Number)</li>
<li aria-level="1">Incorporation of a Business</li>
</ol>
<h2><b>In the case of DSC,</b></h2>
<ol>
<li aria-level="1">Along with the DSC application form, the following papers must be forwarded:</li>
<li aria-level="1">The claimant’s photograph (to be stamped across with a blue pen)</li>
<li aria-level="1">The director’s address proof (s)</li>
<li aria-level="1">Id Proof (<a href="https://muds.co.in/process-for-name-change-in-pan-card/">Pan Card</a>) of the applicant Passport Aadhar card Driving licence Voter Id card Email Id and contact number (for each director)</li>
</ol>
<h2><b>DIN</b></h2>
<p>Fill out the e-form DIR -3, which is available on the MCA website. Alongside Form DIR -3, attach the supporting information:</p>
<ol>
<li aria-level="1">Id proof photo of the applicant (attested)</li>
<li aria-level="1">Proof of address (attested)</li>
<li aria-level="1">Make the payment as directed. The only way to pay is on the internet.</li>
<li aria-level="1">There will be a preliminary DIN created.</li>
<li aria-level="1">A preliminary DIN becomes an authorised DIN after verification.</li>
</ol>
<ul>
<li aria-level="2">For a Firm’s Registration</li>
<li aria-level="2">The Firm’s Title</li>
<li aria-level="2">The firm’s assets</li>
<li aria-level="2">Investors’ list</li>
<li aria-level="2">The director’s Id proof is the company’s purpose (s)</li>
</ul>
<ol>
<li aria-level="1">Aadhar card and passport</li>
<li aria-level="1">Id cards for voters and driver’s licence</li>
<li aria-level="1">Director’s proof of residence (s)</li>
<li aria-level="1">Bank statement Telephone bill</li>
<li aria-level="1">The cost of electricity</li>
<li aria-level="1">Mobile phone bill (not old than two months)</li>
<li aria-level="1">INC-9 Director(s) Consent (form DIR-2) (Affidavit)</li>
</ol>
<ul>
<li aria-level="1">Proof of the registered office’s address</li>
</ul>
<ol>
<li aria-level="1">Bills of Gas,&nbsp;</li>
<li aria-level="1">Phone, and</li>
<li aria-level="1">Electricity</li>
</ol>
<p>If the office is included in the lease, the lease agreement and a letter of authorization from the owner are required.</p>
<h2><b>Holders of DINs declare themselves</b></h2>
<p>A Private Limited&nbsp;<a href="https://muds.co.in/company-registration-2/">Company Registration</a>&nbsp;in Kolkata is an online operation that should be completed with caution, and once completed, the directors are entitled to all of the privileges of a Private Limited Company.</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/private-limited-company-registration-in-kolkata-via-online-method/">Private Limited Company Registration in Kolkata Via Online Method</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
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		<title>New Monetary Policy 2022: Repo Rate Remained Unchanged</title>
		<link>https://muds.co.in/new-monetary-policy-2022-repo-rate-remained-unchanged/</link>
		
		<dc:creator><![CDATA[m0dsAdmn]]></dc:creator>
		<pubDate>Tue, 03 May 2022 08:23:53 +0000</pubDate>
				<category><![CDATA[Consulting]]></category>
		<category><![CDATA[Corporate Insolvency Resolution Process]]></category>
		<category><![CDATA[Debt Recovery]]></category>
		<category><![CDATA[Directors Disqualification]]></category>
		<category><![CDATA[disqualification of directors]]></category>
		<category><![CDATA[Disqualifications of Directors]]></category>
		<category><![CDATA[disqualified directors]]></category>
		<category><![CDATA[Employee Stock Option Plan]]></category>
		<category><![CDATA[ESOP]]></category>
		<category><![CDATA[iepf]]></category>
		<category><![CDATA[Insolvency and Bankruptcy code]]></category>
		<category><![CDATA[insolvency education]]></category>
		<category><![CDATA[insolvency process]]></category>
		<category><![CDATA[Insolvency professional]]></category>
		<category><![CDATA[Insolvency Resolution]]></category>
		<category><![CDATA[lost shares]]></category>
		<category><![CDATA[Micro Financing]]></category>
		<category><![CDATA[NBFC]]></category>
		<category><![CDATA[NBFC Incorporation]]></category>
		<category><![CDATA[nbfc registration]]></category>
		<category><![CDATA[NBFC Weekly Digest]]></category>
		<category><![CDATA[online posh training]]></category>
		<category><![CDATA[physical shares]]></category>
		<category><![CDATA[PoSH]]></category>
		<category><![CDATA[posh act]]></category>
		<category><![CDATA[posh act 2013]]></category>
		<category><![CDATA[posh law]]></category>
		<category><![CDATA[Preference Shares]]></category>
		<category><![CDATA[process to claim shares from iepf]]></category>
		<category><![CDATA[recover shares from iepf]]></category>
		<category><![CDATA[Recovery of Bad Debt]]></category>
		<category><![CDATA[Recovery of Debt]]></category>
		<category><![CDATA[recovery of shares]]></category>
		<category><![CDATA[removal of director]]></category>
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					<description><![CDATA[<p>New Monetary Policy 2022 Releases from the RBI Monetary Policy 2022 Meeting: The six-member Monetary Policy 2022 Committee (MPC), led by Reserve Bank of India (RBI) Governor Shaktikanta Das, maintained the repo rate at 4% and the reverse repo rate at 3.35 % intact. Here’s what the governor of India’s central bank said. RBI Monetary [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/new-monetary-policy-2022-repo-rate-remained-unchanged/">New Monetary Policy 2022: Repo Rate Remained Unchanged</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></description>
										<content:encoded><![CDATA[<h1>New Monetary Policy 2022</h1>
<p>Releases from the RBI Monetary Policy 2022 Meeting: The six-member Monetary Policy 2022 Committee (MPC), led by Reserve Bank of India (RBI) Governor Shaktikanta Das, maintained the repo rate at 4% and the reverse repo rate at 3.35 % intact. Here’s what the governor of India’s central bank said.</p>
<p><b>RBI Monetary Policy 2022: The Reserve Bank of India’s (RBI) Monetary Policy 2022 Committee (MPC) retained the repo rate at 4% for the 11th straight approach achieves a ‘affiliative posture,’ according to RBI Governor Shaktikanta Das on Friday.</b></p>
<p><b>The MPC decided unanimously to continue the accommodating approach, according to the central bank governor, and the reverse repo rate was also remained steady at 3.35 percent.</b></p>
<p>The Marginal Standing Facility (MSF) rates and the lending rate were likewise held steady at&nbsp;<b><i>4.25 percent.</i></b></p>
<p>On May 22, 2020, the RBI reduced its policy repo rate, or short-term lending rate, in an off-policy cycle to boost demand by decreasing interest rates to a historic low.</p>
<p>In a press conference following the Monetary Policy 2022 meeting, Das stated that the RBI will return the liquidity adjustment facility (LAF) corridor to 50 basis points (bps), as it was pre-Covid. The MSF rate and the bank rate remain at 4.25 percent.</p>
<p><b><i>“It also agreed to remain accommodating while concentrating on withdrawal of accommodation to ensure that inflation remains within the goal moving ahead, while encouraging expansion,”&nbsp;</i></b></p>
<p>-he added on the central bank’s attitude.</p>
<p>” It will continue to be part of the RBI’s toolbox, and its use will be at the discretion of the RBI for objectives that are indicated from time to time. The FRRR, in conjunction with the SDF, will increase the flexibility of the RBI’s liquidity management framework.”</p>
<p>The RBI reduced its growth prediction for the current fiscal year to 7.2 percent from 7.8 percent previously, while increasing its inflation forecast to 5.7 percent from 4.5 percent.</p>
<p>He went on to say that, given the inordinate volatility in international oil prices as of early February, as well as the extreme uncertainty surrounding the evolving geopolitical tensions, any projection of growth and inflation is fraught with risk, and is largely dependent on future oil and commodity price developments.</p>
<p>Das addressed liquidity and financial market circumstances in his speech, stating that the RBI will continue to take a sophisticated and agile approach to liquidity risk management while preserving appropriate liquidity in the system.</p>
<p>“At the moment, liquidity management is distinguished by two procedures: variable rate reverse repo (VRRR) bids of varied maturities to swallow liquidity, and variable rate repo (VRR) auctions to fill temporary liquidity problems and offset anomalies.” “We will keep taking this strategy,” he stated.</p>
<h2 data-fontsize="20" data-lineheight="24"><b>ATM cash withdrawal without a card that is interoperable</b></h2>
<p>In an effort to combat fraud, the Reserve Bank of India agreed on Friday to allow all banks to use card-less cash withdrawal through ATMs. Currently, card-less cash withdrawal via ATMs is a permissible form of transaction allowed by a few banks in the nation on an as-needed basis (for their customers at their own ATMs).</p>
<h3><b>Economic experts and market analysts reacted as follows:</b></h3>
<ul>
<li aria-level="1">The severe reduction in GDP forecasts for FY23 and significant increase in inflation expectations for FY23 might suggest some tightening measures in the future, which would be supported by the shift in posture to focus on withdrawal of accommodation. Current geopolitical developments, supply chain concerns, and commodity price increases are tying the RBI’s hands and pushing it to progressively turn hawkish, despite its desire to maintain its pro-growth perspective. The 10-year Gsec yield has increased to 7%, showing the street’s worry over the massive borrowing programme in the face of rising interest rates.”</li>
<li aria-level="1">“Retaining the repo rate at 4% and the reverse repo rate at 3.35 percent, continuing with the accommodating posture on expected lines,” said V K Vijayakumar, Chief Investment Strategist at Geojit&nbsp;<a href="https://muds.co.in/">Financial Services</a>. Recognizing the new reality of increased petroleum prices caused by the war, the RBI cut the FY23 GDP growth rate prediction to 7.2 percent from 7.8 percent before and upped the FY23 CPI inflation projection to 5.7 percent from 4.5 percent previously. This is predicated on the premise that crude will be $100 per barrel. This suggests that if crude falls considerably, which is likely if the conflict ends soon, GDP and inflation will improve.The opposite might be true if the battle escalates and petroleum prices rise well beyond $100. The Governor correctly underscored India’s macroeconomic fundamentals, noting to an improvement in the external position aided by record exports, large foreign reserves of $608 billion, and banking sector development. The SDF (Standing Deposit Facility) is a new mechanism established by the central bank to absorb liquidity.&nbsp;</li>
</ul>
<p>“The recent RBI Monetary Policy 2022 did not include any surprises,” stated Nish Bhatt, Founder &amp; CEO of Millwood Kane International, “it held rates constant for the 11th straight policy.” However, it has clearly outlined the road to policy unwinding. The emphasis will now be on withdrawing the accommodating policy stance in order to keep inflation under control. The&nbsp;<a href="https://www.rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx?prid=53601">RBI’s statement today</a>&nbsp;plainly suggests the end of loose Monetary Policy 2022, which is reflected in the 10-year benchmark yield, which has reached a multi-year high.&nbsp;The unwinding of liquidity will cause some instability, and it is expected that the RBI would drop the growth rate prediction for FY23 to 7.2 percent, with the inflation target raised to 5.7 percent from 4.5 percent previously. The explicit goal of central banks throughout the world is to manage inflation, unwind lose money, and concentrate on gradual and steady development.“</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/new-monetary-policy-2022-repo-rate-remained-unchanged/">New Monetary Policy 2022: Repo Rate Remained Unchanged</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
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		<item>
		<title>POSH Act: ALL ABOUT THE SEXUAL HARASSMNET LAW IN INDIA</title>
		<link>https://muds.co.in/posh-act-all-about-the-sexual-harassmnet-law-in-inida/</link>
		
		<dc:creator><![CDATA[m0dsAdmn]]></dc:creator>
		<pubDate>Tue, 03 May 2022 07:03:53 +0000</pubDate>
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					<description><![CDATA[<p>POSH Act: ALL ABOUT THE SEXUAL HARASSMENT LAW&#160; Sexual harassment law:&#160;The word “workplace” confers to the Sexual&#160;harassment at workplace&#160;of Women at Workplace (Regulation, Prevention, and Redressal) Posh Act of 2013, and specifically includes: All offices or other locations where the Company does business. All Company-related activities undertaken at any other place that is not the [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/posh-act-all-about-the-sexual-harassmnet-law-in-inida/">POSH Act: ALL ABOUT THE SEXUAL HARASSMNET LAW IN INDIA</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></description>
										<content:encoded><![CDATA[<h2>POSH Act: ALL ABOUT THE SEXUAL HARASSMENT LAW&nbsp;</h2>
<p><b>Sexual harassment law:</b>&nbsp;<b><i>The word “workplace” confers to the Sexual&nbsp;</i></b><b>harassment at workplace</b><b><i>&nbsp;of Women at Workplace (Regulation, Prevention, and Redressal) Posh Act of 2013, and specifically includes:</i></b></p>
<div class="post-content">
<ol>
<li>All offices or other locations where the Company does business.</li>
<li>All Company-related activities undertaken at any other place that is not the Company’s premises and is under the authority of the employers.</li>
<li>Any social, business, or other activities and/or events, seminars, or corporate gatherings where the behavior and/or commencements may have a negative influence on working women workers participating in the event.</li>
</ol>
<h2><b>HOW TO PREVENT SEXUAL HARRASSMENT</b></h2>
<p>Sexual harassment law prevention—</p>
<p>(1) No woman shall be exposed to sexual harassment in any job.</p>
<p>(2) If any of the below events take place, are presented in conjunction with, or are connected to any act or behavior of gender based violence, they may be considered sexual assault:</p>
<ul>
<li aria-level="1">Inferred or clear and specific assure of favorable treatment in her workplace;</li>
<li aria-level="1">Inferred or imminent threat of harassment at workplace and discrimination in her workplace;&nbsp;</li>
<li aria-level="1">Inferred or actual assault about her current or future job status; or&nbsp;</li>
<li aria-level="1">Intervention with her job role or creation of a threatening, objectionable, or hostile work environment for her; or</li>
<li aria-level="1">Mortifying treatment likely to damage her safety and wellbeing</li>
</ul>
<p>All Group/Company personnel have a personal duty to ensure that their actions do not violate this policy. All workers are asked to underline the importance of maintaining a sexual harassment at workplace-free workplace.</p>
<h4><b>Grievance Procedure:&nbsp;</b></h4>
<p>In the Company/Group, a suitable complaint mechanism in the form of a “Internal Complaints Committee” (ICC) has been established for the timely redress of the victim employee’s complaint.</p>
<h2><b>ESTABLISHMENT OF INTERNAL COMPLAINTS COMMITTEE (ICC):</b></h2>
<p>All personnel at the site who are covered by the committee are informed of the committee’s details (workplace).</p>
<h3><b><i>Each location’s committee consists of the following individuals:</i></b></h3>
<ul>
<li aria-level="1">A woman in a top position in the company or workplace serves as the presiding officer.</li>
<li aria-level="1">At least two staff who are devoted to the cause of women and/or have legal expertise;</li>
<li aria-level="1">One representative from a non-governmental group or association dedicated to the cause of women, or a person knowledgeable about sexual harassment concerns.</li>
</ul>
<h3><b>The Internal Complaints Committee is in charge of the following:</b></h3>
<ul>
<li aria-level="1">Receiving sexual harassment at workplace allegations in the workplace.</li>
<li aria-level="1">Initiating and conducting an investigation in accordance with the Act’s stated procedure.</li>
<li aria-level="1">Inquiry results and suggestions are submitted.</li>
<li aria-level="1">collaborating with the employer to put necessary measures in place.</li>
<li aria-level="1">Following the established policy of maintaining tight secrecy throughout the process.</li>
<li aria-level="1">Discourage and prevent sexualharassment at workplace.</li>
</ul>
<h2><b>PROCEDURES FOR RESOLVING, SETTLING, OR PROSECUTING SEXUAL HARASSMENT LAW:</b></h2>
<p>As follows, the Company is dedicated to creating a supportive atmosphere for resolving sexual harassment complaints:</p>
<ol>
<li aria-level="1">When an episode of sexual harassment happens, the victim of such conduct can instantly convey their displeasure and concerns to the harasser, as well as urge that the harasser act respectfully. If the harassment continues, or if the victim feels uncomfortable confronting the harasser directly, the victim may submit their concerns to the Internal Complaints Committee (ICC) for resolution of their issues. Following that, the Internal Complaints Committee will give advise or assistance as needed, as well as conduct a quick investigation to settle the situation.</li>
</ol>
<p>&nbsp;</p>
<h3><b>Charge under sexual harassment law</b></h3>
<ol>
<li>An employee with a harassment complaint who is uncomfortable with or has exhausted the informal settlement alternatives may file a formal complaint with the Presiding Officer of the Management’s Internal Complaints Committee. Any aggrieved woman may file a complaint of sexual harassment at work with ICC within 3 (three) months of the date of the incident, or in the case of a series of incidents, within 3 (three) months of the last incident, and ICC may, for reasons to be recorded in writing, extend the time limit not exceeding three months if the circumstances of the case are satisfied.</li>
<li>In the event that such a complaint cannot be made in writing, the Presiding Officer or any&nbsp;<a href="https://muds.co.in/composition-and-duties-of-the-internal-complaints-committee/">member of the ICC</a>&nbsp;shall provide the woman with all reasonable help in writing the complaint.</li>
<li>Before launching an investigation under Section 11 of the Posh Act, the ICC may, at the request of the aggrieved woman, attempt to resolve the matter through conciliation, provided that no monetary settlement is made as a basis for conciliation, and where a settlement is reached, the ICC shall record the settlement and forward it to the employer for action as specified in the recommendation. Following that, the ICC will send the aggrieved ladies and the respondent with copies of the settlement as recorded, and no further investigation will be done.</li>
<li>If the aggrieved woman notify the ICC under the&nbsp;<a href="https://muds.co.in/posh-act-2013-sexual-harassment-women-workplace/">posh act</a>&nbsp;that any term or condition of the settlement reached under Section 10 (2) has not been met by the respondent, the ICC shall conduct an investigation or, as the case may be, forward the complaint to the police, and for the purpose of conducting an investigation, the ICC shall have the same powers as a Civil Court when trying a suit under the Code of Civil Procedure, 1908.</li>
<li>The ICC must finish the investigation under Section 11(1) within 90 days.&nbsp;</li>
</ol>
<h3><b>Any of the following can be used as a basis for disciplinary action:</b></h3>
<ol>
<li>Formal sincerely apologise;&nbsp;</li>
<li>Reduction to a lower grade;&nbsp;</li>
<li>Written warning with a copy kept in the employee’s file;&nbsp;</li>
<li>Suspension or termination of promotion for two years or more depending on the sensitivity of the case;&nbsp;</li>
<li>Any other appropriate disciplinary action as deemed</li>
</ol>
<h3><b>1. Report of the Inquiry under the sexual harassment law:</b></h3>
<p>The ICC must provide the inquiry report to the parties concerned within 10 days after the conclusion of the investigation.</p>
<h3><b>2. Penalties For False Or Intentionally False Complaints And False Evidence:</b></h3>
<p>If the ICC determines that the complainant made the complaint knowing it was false or produced any forged or misleading document, it may advise the employer to take action against the aggrieved women or the person who made the complaint with wrongful intent, as the case may be, in accordance with the provisions of the services rules applicable to her or him or, if no such service rules exist, in accordance with the provisions of the services rules applicable to her or him.</p>
<h3><b>3. Penalties for Making a False Or Malicious Complaint and Providing False Evidence:</b></h3>
<p>If the ICC determines that the complainant made the complaint knowing it was false or produced any forged or misleading document, it may advise the employer to take action against the aggrieved woman or the person who made the complaint with wrongful intent, as the case may be, in accordance with the provisions of the rules of the service applicable to her or him, or where no such service rules exist, in such a matrimonial situation.</p>
<h3><b><i>Annual report preparation: It must include the following information:</i></b></h3>
<ol>
<li>a) The number of sexual harassment complaints received each year;&nbsp;</li>
<li>b) The number of complaints resolved each year;</li>
<li>c) The number of cases pending for more than 90 days;&nbsp;</li>
<li>d) The number of workshops held to raise awareness about sexual harassment at workplace;&nbsp;</li>
<li>e) The type of action taken by the employer or district magistrate.</li>
</ol>
<h2><b>Security:</b></h2>
<p>The Company realises how difficult it is for a victim to come forward with sexual harassment at workplace complaints and respects the victim’s desire to keep the matter private.</p>
<h2><b>COMPLAINANT / VICTIM PROTECTION:&nbsp;</b></h2>
<p>The Company is dedicated to ensuring that no employee who reports harassment at workplace is subjected to retaliation in any way. Any retaliation will result in disciplinary action. When dealing with sexual harassment accusations, the Company will guarantee that the victim or witnesses are not mistreated or discriminated against. Anyone who abuses the system (for example, by intentionally making an accusation knowing it is false) will face disciplinary action as outlined in the Act.</p>
<h2><b>CONCLUSION:</b></h2>
<p>Finally, the Company reaffirms its commitment to creating a harassment-free and discrimination-free workplace where each worker is regarded with decency and respect. Posh act or sexual harassment law&nbsp;<a href="https://en.wikipedia.org/wiki/Sexual_Harassment_of_Women_at_Workplace_(Prevention,_Prohibition_and_Redressal)_Act,_2013#:~:text=The%20Sexual%20Harassment%20of%20Women,Parliament)%20on%203%20September%202012.">ensures safety of females</a>&nbsp;at online and offline workplaces.&nbsp;</p>
</div>
<div class="fusion-meta-info">&nbsp;</div>
<p>The post <a rel="nofollow" href="https://muds.co.in/posh-act-all-about-the-sexual-harassmnet-law-in-inida/">POSH Act: ALL ABOUT THE SEXUAL HARASSMNET LAW IN INDIA</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
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			</item>
		<item>
		<title>SEBI Clarified the Regulations for RTAs For Investor Service Inquiries</title>
		<link>https://muds.co.in/sebi-circular-common-simplified-norms-for-processing-investors-service-request/</link>
		
		<dc:creator><![CDATA[m0dsAdmn]]></dc:creator>
		<pubDate>Fri, 18 Feb 2022 05:10:45 +0000</pubDate>
				<category><![CDATA[SEBI]]></category>
		<category><![CDATA[SEBI circular]]></category>
		<guid isPermaLink="false">https://muds.co.in/?p=13580</guid>

					<description><![CDATA[<p>Common and Simplified Norms for processing investor’s service request by RTAs and norms for furnishing PAN, KYC details and Nomination 1. As an on-going measure to enhance the ease of doing business for investors in the securities market, the following norms, with respect to the captioned matter, shall be applicable; Common and simplified norms for [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/sebi-circular-common-simplified-norms-for-processing-investors-service-request/">SEBI Clarified the Regulations for RTAs For Investor Service Inquiries</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></description>
										<content:encoded><![CDATA[<h3>Common and Simplified Norms for processing investor’s service request by RTAs and norms for furnishing PAN, KYC details and Nomination</h3>
<h4>1. As an on-going measure to enhance the ease of doing business for investors in the securities market, the following norms, with respect to the captioned matter, shall be applicable;</h4>
<ul>
<li>Common and simplified norms for processing any service request from the holder, pertaining to the captioned items, by the RTAs</li>
<li>Electronic interface for processing investor’s queries, complaints and service request</li>
<li>Mandatory furnishing of PAN, KYC details and Nomination by holders of physical securities</li>
<li>Freezing of folios without valid PAN, KYC details and Nomination</li>
<li>Compulsory linking of PAN and Aadhaar by all holders of physical securities</li>
</ul>
<h4>2. Standardized, simplified and common norms for processing investor service request</h4>
<p>Investors holding securities in physical mode interface with the RTAs,&nbsp;<em>inter-alia</em>, for</p>
<ol>
<li>Registering of / Change in / Up-dation of: a) PAN, b) Nominee, c) Contact details (postal address, Mobile number &amp; E-mail), d) Bank details and e) Signature.</li>
<li>Processing of request for: a) Issue of Duplicate securities certificate b) Replacement / Renewal / Exchange of securities certificate, c) Consolidation of securities certificate d) Sub-division / Splitting of securities certificate, e) Consolidation of folios, f) Endorsement, g) Change in the name of the holder,
<ol>
<li>Change in status from Minor to Major and Resident to NRI and vice versa,</li>
<li>Claim for undelivered securities certificate, prior to its transfer Unclaimed</li>
</ol>
</li>
</ol>
<p>Suspense Account, j) Claim from Unclaimed Suspense (demat) Account k) Transmission and l) Transposition.</p>
<ul>
<li>Services through Depository Participants (<strong>DPs</strong>) for Demat and Remat</li>
</ul>
<p>In this regard, Norms for processing investor service requests, including the aforementioned are standardized, simplified and made common across all service request, as follows;</p>
<h4 data-fontsize="14" data-lineheight="20">2.1.&nbsp; Minor mismatch in signature</h4>
<ol>
<li>In case of minor mismatch in the signature of the securities holder as available in the folio of the RTA and the present signature, the RTA, while processing the service request, shall intimate the holder by Speed post about the minor mis-match in signature, providing timeline of 15 days for raising objection, if In the absence of any objection, the service request shall be processed.</li>
<li>If the letter returns undelivered or if there is an objection, as aforesaid, the RTA shall obtain signature verification by the banker before proceeding the service</li>
</ol>
<h4 data-fontsize="14" data-lineheight="20">2.2.&nbsp; Major mismatch in signature or Signature Card is not available</h4>
<p>In case of major mismatch in the signature of the holder as available in the folio of the RTA and the present signature or if the same is not available with the RTA, then the holder / claimant shall furnish original cancelled cheque and banker’s attestation of the signature as per Form ISR-2<strong>.</strong></p>
<h4 data-fontsize="14" data-lineheight="20">2.3.&nbsp; Mismatch in name</h4>
<ol>
<li>For minor mismatch in name between any two set of documents presented by holder / claimant for any service request, the RTA shall additionally obtain any one of the following documents, explaining the difference in names;
<ul>
<li>Unique Identification Number (UID) (Aadhaar)</li>
<li>Valid Passport</li>
<li>Driving license</li>
<li>PAN card with photograph</li>
<li>Identity card / document with applicant’s Photo, issued by any of the following: Central / State Government and its Departments, Statutory / Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, Public Financial</li>
<li>Marriage certificate</li>
<li>Divorce decree</li>
</ul>
</li>
<li>The existing norms of the Depositories, to process demat request where there is a minor mis-match on account of initials not being spelt out fully, or put after or prior to surname, provided the signature in the Demat Request Form (<strong>DRF</strong>) matches with the signature card with the RTA, shall continue to be in</li>
</ol>
<h4 data-fontsize="14" data-lineheight="20">2.4.&nbsp; Furnishing of PAN</h4>
<ol>
<li>PAN is mandatory for all transactions in securities market as per&nbsp;<a href="https://www.sebi.gov.in/legal/circulars/apr-2007/permanent-account-number-pan-to-be-the-sole-identification-number-for-all-transactions-in-the-securities-market_9445.html">circular</a>&nbsp;dated April 27, 2007 and it is also one of the document for proof of identity. Accordingly, it is reiterated that it is mandatory for all holders and claimants of physical securities to furnish PAN and it is mandatory for RTAs to verify PAN details through the facility as may be provided by the Income Tax Department (<strong>ITD</strong>). In this regard, SEBI registered RTAs have been authorized as an eligible entity by the ITD to verify PANs through its ‘Online PAN Bulk Verification’ (<strong>PBV</strong>)</li>
<li>Additionally, the ‘Exemptions/clarifications to PAN’, as provided in clause D to ‘Instructions/Check List for Filing KYC Forms’ in Annexure – 1 to SEBI circular No. MIRSD/SE/Cir-21/2011 dated October 05, 2011 on Uniform Know Your Client (KYC) Requirements for the Securities Market, shall also applicable for holder(s) / claimant(s) of securities held in physical</li>
</ol>
<h4 data-fontsize="14" data-lineheight="20">2.5.&nbsp; Documents for Proof of Address</h4>
<ul>
<li>The RTA shall obtain any one of the following documents from the holder</li>
</ul>
<p>/ claimant, if the address is not available in the folio or for processing the request for its change;</p>
<ol>
<li>Valid Passport / Registered Lease or Sale Agreement of Residence / Driving License / Flat Maintenance</li>
<li>Utility bills like Telephone Bill (only land line), Electricity bill or Gas bill – Not more than 3 months</li>
<li>Identity card / document with address, issued by any of the following: Central/State Government and its Departments, Statutory / Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks,</li>
</ol>
<p>Public Financial Institutions</p>
<ol>
<li>For FII / sub account, Power of Attorney given by FII / sub-account to the Custodians (which are duly notarized and / or apostilled or consularised) that gives the registered address should be</li>
<li>The proof of address in the name of the</li>
<li>Client Master List (<strong>CML</strong>) of the Demat Account of the holder / claimant, provided by the Depository</li>
</ol>
<ul>
<li>RTAs shall forthwith send intimation about the request for change in address to the holder at both the old and new addresses by Speed post, providing, timeline of 15 days for raising objection, if</li>
</ul>
<ol>
<li>In the absence of any objection, the request shall be processed.</li>
<li>If any one of the letter returns undelivered or if there is an objection, the RTA shall obtain any one of the documents mentioned above reflecting the old address as available in the folio or counterfoil of dividend warrant received from the company or bank statement showing credit of</li>
</ol>
<h4>2.6.&nbsp; Self-attestation to replace Affidavits, Attestation / Notarization</h4>
<p>For all service request, except transmission, copies of documents that are summited in hard copy shall be processed by the RTA only if the same is self-attested by the holder(s), with date. It is clarified that the RTA shall not insist on affidavits or attestation / notarization of documents.</p>
<h4>2.7.&nbsp; Indemnity</h4>
<p>RTA shall not insist on indemnity for any service request, unless the same is specially provided in the Companies Act, 2013 or the Rules issued thereunder or in SEBI circular or Regulations&nbsp; issued thereunder.</p>
<h4>2.8.&nbsp; Form for availing investor services</h4>
<p>RTA shall process all investor service request by accepting the duly filled up request Form ISR-1(<em>pdf</em>) (<em>word file</em>) to this circular. Listed companies and RTAs shall make this form available in their websites.</p>
<h4>2.9.&nbsp; KYC details across all folios of the holder, maintained by the RTA</h4>
<p>RTAs shall update the PAN and KYC details across all the folios of the holder managed by it, upon specific authorization for the same from the holder, as provided in Form ISR-1(<em>pdf</em>) (<em>word file</em>).</p>
<p>In this regard, RTA shall update the folio(s) of the holder with the information on 1) present address, 2) bank details, 3) E-mail address and 4) mobile number from the details available in the Client Master List (<strong>CML</strong>), if the holder / claimant provides the CML.</p>
<h4 data-fontsize="14" data-lineheight="20">2.10. Mode for providing documents / details by investors</h4>
<p>The RTA shall enable the holder / claimant to provide the aforesaid document / details by any one of the following mode;</p>
<ol>
<li>through ‘In Person Verification’ (IPV): the authorized person of the RTA shall verify the original documents furnished by the investor and retain copy(ies) with IPV stamping with date and initials</li>
<li>through hard copies which are self-attested and dated</li>
<li>through electronic mode with e-sign, as elaborated</li>
</ol>
<h4 data-fontsize="14" data-lineheight="20">2.11. Timelines for registering of / up-dation of / change in PAN, KYC and nomination</h4>
<p>RTAs shall process any of the aforesaid request from the holder, within seven working days of receipt of the complete documents / details.</p>
<p>However, as provided in the Rule 19 (10) of the Companies (Share Capital and Debenture) Rules, 2014, as amended from time to time, the cancellation or change in nomination shall take effect from the date on which the intimation for the same is received by the company / RTA.</p>
<h4>2.12. Display of contact details of RTAs</h4>
<p>RTAs shall provide their complete contact details (viz. postal address, phone numbers and e-mail address etc.) in their respective websites. The same shall also be provided in the website of the listed company and also in the stock exchange(s) in which it is listed. RTA shall arrange to update the same forthwith, as and when there is a change.</p>
<h4>2.13. All objections by RTA in once instance</h4>
<p>While processing complaints or service request, the RTAs shall raise all objections, if any / at all, in one instance only; the additional information may be sought only in case of any deficiency / discrepancy in the documents / details furnished by the holder.</p>
<h4 data-fontsize="14" data-lineheight="20">3. Electronic interface for processing queries, complaints and service request</h4>
<ul>
<li>In addition to responding to queries, complaints and service request through hard copies, the RTA shall also process the same received through e-mails, provided that it is received from the e-mail address of the holder which is already registered with the RTA. Additionally, in the case of service requests, the documents furnished shall have e-sign of the holder(s) / claimant(s)</li>
<li>Through service portal of the RTA</li>
</ul>
<p>In case the RTA is offering on-line processing of service request thought its portal, then the holder may submit his / her request or complaint through this portal, using appropriate credential for login and password. The scanned copies of the documents furnished shall have e-sign.</p>
<p>The RTA shall also use the electronic / on-line mode for communicating with the holder</p>
<p>/ claimant for speedier processing.</p>
<h4 data-fontsize="14" data-lineheight="20">4. Mandatory furnishing of PAN, KYC details and Nomination by holders of physical securities</h4>
<ul>
<li>It shall be mandatory for all holders of physical securities in listed company to furnish the following documents / details to the RTA;
<ol>
<li>PAN</li>
<li>Nomination (for all eligible folios)</li>
</ol>
</li>
</ul>
<p>Details of nomination details shall be furnished hard copy or through electronic mode with e-signature, separately for each company, as follows;</p>
<ol>
<li>Either,
<ul>
<li>Nomination through Form SH-13 as provided in the Rules 19 (1) of Companies (Shares capital and debenture) Rules, 2014&nbsp;<u>or</u></li>
<li>‘Declaration to Opt-out’, as per Form ISR-3</li>
</ul>
</li>
<li>In case of cancellation of nomination by the holder(s) through Form SH- 14, then ‘Declaration to Opt-out’ shall be provided by the holder(s)</li>
</ol>
<ul>
<li>Securities holder(s) can change their nominee through Form SH-14 Listed companies, RTAs and Stock Exchanges shall make available these three forms in their respective</li>
</ul>
<ol>
<li>Contact details</li>
</ol>
<p>Postal address with PIN, Mobile number, E-mail address</p>
<p>RTA shall obtain the folio number from the mobile number and E-mail address provided by the holder, so as to validate the same.</p>
<ol>
<li>Bank account details (bank name and branch, bank account number, IFS code)</li>
</ol>
<p>Upon receipt or up-dation of bank details, the RTA shall&nbsp;<em>suo-moto</em>, pay electronically, all the moneys of / payments to the holder that were previous unclaimed / unsuccessful.</p>
<ol>
<li>Specimen signature</li>
</ol>
<ul>
<li>From the date of issue of this circular, RTAs shall obtain documents / details of PAN, KYC details and Nomination, wherever, the same is not available in the folio, while processing any service requests or complaint from the holder(s) / claimant(s).</li>
</ul>
<h4>5. Freezing of Folios without PAN, KYC details and Nomination</h4>
<ul>
<li>The folios wherein any one of the cited document / details are not available on or after April 01, 2023, shall be frozen by the</li>
<li>The securities in the frozen folios shall be
<ol>
<li>eligible to lodge grievance or avail service request from the RTA only after furnishing the complete documents / details as aforesaid</li>
<li>eligible for any payment including dividend, interest or redemption payment only through electronic mode and an intimation from the RTA to the holder that the aforesaid such payment is due and shall be made electronically upon complying with the requirements in paragraph 4</li>
<li>referred by the RTA / listed company to the administering authority under the Benami Transactions (Prohibitions) Act, 1988 and or Prevention of Money Laundering Act, 2002, if they continue to remain frozen as on December 31,</li>
</ol>
</li>
</ul>
<ul>
<li>The RTA shall revert the frozen folios to normal status upon
<ol>
<li>receipt of all the aforesaid documents / details at paragraph 4 above or</li>
<li>dematerialization of all the securities in such folios</li>
</ol>
</li>
</ul>
<h4>6. Compulsory linking of PAN and Aadhaar by all holders of physical securities in listed companies</h4>
<ul>
<li>The Central Board of Direct Taxes (<strong>CBDT)</strong>, vide Notification O. 3814(E) dated September 17, 2021, has extended the date for linking PAN with Aadhaar number to March 31, 2022. SEBI circular issued&nbsp;<a href="https://www.sebi.gov.in/media/press-releases/sep-2021/linking-of-pan-with-aadhaar_52368.html">Press Release dated September 03,</a><a href="https://www.sebi.gov.in/media/press-releases/sep-2021/linking-of-pan-with-aadhaar_52368.html">&nbsp;2021</a><u>,</u>&nbsp;advising
<ol>
<li>intermediaries to accept only valid PANs from this aforesaid date, while opening new accounts</li>
<li>existing investors to link their PAN with their Aadhaar number by the date specified by</li>
</ol>
</li>
</ul>
<ul>
<li>Accordingly, from March 31, 2022 or any other date as may be specified by the CBDT, RTAs shall
<ol>
<li>accept only valid PANs and</li>
<li>also verify that the PAN in the existing folios are valid; e. whether it is linked to the Aadhaar number of the holder.</li>
</ol>
</li>
</ul>
<p>In this regard, the RTAs may use of the PBV facility from the service providers of ITD.</p>
<ul>
<li>The folios in which PANs is / are not valid as on the notified cut-off date of March, 31, 2022 or any other date as may be specified by the CBDT, shall also be frozen, as detailed in paragraph 5</li>
</ul>
<h4>7. Intimation to securities holders</h4>
<p>Listed companies, RTAs and Stock Exchanges shall disseminate the requirement of the holders of physical securities of all listed companies to furnish valid PAN, KYC details and Nomination, on their respective websites. Listed companies shall also directly intimate its securities holders about folios which are incomplete viz. the aforesaid requirement.</p>
<ol start="8">
<li>This circular shall come into effect from January 01, 2022 and its provisions shall supersede provisions of previous SEBI circular in this</li>
<li>RTAs shall provide a certificate of compliance from a practicing Company Secretary, within 45 days of this circular, certifying the changes carried out, systems put in place</li>
</ol>
<p>/ new operating procedures implemented etc. to comply with the provisions of this circular.</p>
<ol start="10">
<li>Depositories are advised to take necessary steps to;
<ul>
<li>implement the provisions of this circular / make necessary amendment(s) to the relevant bye-laws / business rules / regulations / operational instructions, as the case may be,</li>
<li>bring the provisions of this circular to the notice of their constituents and</li>
<li>disseminate this circular on their</li>
</ul>
</li>
</ol>
<ol start="11">
<li>The Stock Exchanges are advised to;
<ul>
<li>comply with the relevant portion(s) of this circular applicable to them,</li>
<li>bring the provisions of this circular to the notice of listed companies and</li>
<li>disseminate the same on their</li>
</ul>
</li>
</ol>
<ol start="12">
<li>This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992, read with Regulation 101 of<a href="https://muds.co.in/sebi-regulations-for-transfer-of-physical-shares/">&nbsp;SEBI</a>&nbsp;(Listing Obligations and Disclosures Regulations) 2015, to protect the interests of investors in securities and to promote the development of, and to regulate the securities</li>
</ol>
<p>The post <a rel="nofollow" href="https://muds.co.in/sebi-circular-common-simplified-norms-for-processing-investors-service-request/">SEBI Clarified the Regulations for RTAs For Investor Service Inquiries</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
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		<title>An In-Depth Analysis of SEBI&#8217;s Authority</title>
		<link>https://muds.co.in/analysis-of-sebi-authority/</link>
		
		<dc:creator><![CDATA[Shweta Gupta]]></dc:creator>
		<pubDate>Fri, 08 Oct 2021 04:03:11 +0000</pubDate>
				<category><![CDATA[Financial]]></category>
		<category><![CDATA[SEBI]]></category>
		<guid isPermaLink="false">https://muds.co.in/an-in-depth-analysis-of-sebis-authority/</guid>

					<description><![CDATA[<p>The Securities and Exchange Board of India was established as a statutory entity by an ordinance on January 30, 1992. The ordinance was passed by both chambers of Parliament on April 1, 1992, although the legislation is deemed to have taken effect from the day the ordinance was issued. The abilities of the SEBI are [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/analysis-of-sebi-authority/">An In-Depth Analysis of SEBI&#8217;s Authority</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p>The Securities and Exchange Board of India was established as a statutory entity by an ordinance on January 30, 1992. The ordinance was passed by both chambers of Parliament on April 1, 1992, although the legislation is deemed to have taken effect from the day the ordinance was issued. The abilities of the SEBI are examined and analysed in this article.</p>
<h2><b>SEBI&#8217;s Mission</b></h2>
<p>SEBI was established in the same manner as the Securities and Exchange Commission of the United States, which was established under the Securities Exchange Act of 1934 to oversee the securities market and to prevent unfair trade activities on the stock exchange. Because of the securities fraud, there was a sense of urgency to establish SEBI as a capital markets regulator.</p>
<p>The Securities and Exchange Board of India aims to meet the needs of issuers, investors, and intermediates involved in the securities market. SEBI is a quasi-legislative and quasi-judicial organisation with the authority to create rules, conduct investigations, issue decisions, and levy penalties.</p>
<h2><b>What are the significant powers of SEBI?</b></h2>
<p>SEBI has broad powers to carry out the goals of the SEBI Act of 1992. SEBI has the authority to take both preventative and punitive actions in order to safeguard investors and improve the securities market. Circulars, instructions, and press releases are examples of such initiatives. Furthermore, the actions can be implemented if they are carried out in accordance with and advancement of the defined objectives.</p>
<p>SEBI is in charge of overseeing all AMCs and Asset Management <a href="https://muds.co.in/company-registration-2/">Company Registration</a> in the nation. SEBI is the primary authority when it comes to controlling, supervising, and assessing the performance of investment managers. SEBI also has a procedure for resolving complaints and other concerns about asset managers.</p>
<h2><strong><i>SEBI is empowered to take measures to regulate the following:</i></strong></h2>
<h3>Regulation of stock exchange business and other securities market</h3>
<p>SEBI focuses on preserving the openness, integrity, and correct operation of stock exchanges by different means such as broker registration, increased trading hours, resolving investor concerns, and so on. SEBI also has the authority under the Securities Contract (Regulation) Act of 1956 to give recognition to stock exchanges, supersede stock exchange activity, remove recognition, and so on. The Central Government has delegated these authorities.</p>
<h3>Registration and Regulation of securities market intermediaries</h3>
<p>SEBI has the authority to create registration regulations, which might include eligibility requirements, capital adequacy standards, a code of conduct, and so on. No one can engage in activities carried out by a SEBI registered intermediary until the certificate of registration is supplied by SEBI. It guarantees that the fit and suitable guidelines are followed.</p>
<h3>Registration and regulation of the functioning of the Venture Capital Fund, Collective Investment Schemes</h3>
<p>Previously, mutual funds were controlled by RBI standards, which applied only to mutual funds sponsored by banks. SEBI issues a certificate of registration to the mutual fund. It also controls the form and composition of the fund, its AMCs, the registration of trust deeds, and has the authority to regulate various schemes and activities of mutual funds.</p>
<h3>Regulation of the self-regulatory organizations</h3>
<p>Self-regulatory organisations are charged with becoming the first level regulator for a subset of securities market intermediaries who are members of the organisation. SEBI recognises self-regulatory groups and monitors their operations to ensure that they are adhering to ethical norms. It contributes to investor fairness, accountability, and openness. Association of Investment Bankers of India and Association of Mutual Funds of India are two examples of self-regulatory organisations.</p>
<h3>Power to prohibit fraudulent &amp; unfair trade practices in the securities market</h3>
<p>The SEBI (Prohibition of fraudulent and unfair dealing in the securities market) Regulations 2003 were notified. Price manipulation, circular trading, inflating, lowering, or fluctuating securities prices, and publishing any incorrect statement or deceptive advertisement are all examples of fraudulent transactions and unfair trade practises defined by SEBI as well as others.</p>
<h3>Prohibiting Insider Trading in Securities</h3>
<p>SEBI has taken steps to ban securities market players from engaging in insider trading. SEBI drafted the original Prohibition of Insider Trade Regulations in 1992, which were later superseded by the Prohibition of Insider Trading Regulations 2015, which defined an insider, unpublished price sensitive knowledge, trading, and other terms. SEBI established many committees with the goal of improving market integrity and increasing investor trust.</p>
<p>On the suggestion of the TK Viswanathan Committee Report, many modifications to the Prohibition of Insider Trading Regulations were adopted.</p>
<h3>Regulation of substantial shares acquisition and companies takeover</h3>
<p>SEBI requires open offers and disclosure by the acquisition and any person working in conjunction with such acquirer. It specifies who would be an acquirer, target firm, and so on. What it does is assure that the acquisition mechanism is transparent and accountable. SEBI also requires sufficient disclosures from listed firms&#8217; acquirers and promoters.</p>
<p>SEBI has the authority to impose rules under Section 30(2) of the SEBI Act. Regulations have been established for securities market intermediaries, mutual funds, <a href="https://muds.co.in/alternative-investment-fund-registration/">alternate investment funds</a>, venture capital funds, foreign portfolio investors, insider trading, takeovers, and other securities-related issues. However, it should be remembered that SEBI regulations are both legislative and statutory in nature.</p>
<h2><b>Let’s explore Investigating Powers of SEBI</b></h2>
<p>When it comes to the theory of separation of powers, SEBI&#8217;s quasi-judicial activities and decisions are susceptible to appeal, while the Board&#8217;s obligations fall to the other side. The board exercises legislative authority by enacting rules, executive power by enforcing regulations enacted by it and taking action against entities that violate the regulations, and judicial power by adjudicating implementation issues. Such authority must be consistent with the constitution and the SEBI Act, and not contradict them.</p>
<p>The SEBI has the authority to order an inquiry if it has cause to suspect that a securities transaction is harmful to investors or the securities market, or if someone breaches the terms of the Act. SEBI also has the authority of a civil court in that it may call and order a person&#8217;s attendance, interrogate them, and check records of accounts.</p>
<p>Furthermore, as part of its powers, SEBI can restrict or ban a person from entering the securities market. SEBI can issue such an order even while the inquiry is ongoing. Furthermore, by obtaining a disgorgement order, SEBI can recover illicit gains acquired by a person via illegal activity.</p>
<p>SEBI can also take immediate action against companies that incorporate illegal schemes to generate revenue from retail investors, and it can prohibit a person acting as an intermediary, such as a research analyst, investment advisor, and so on, from soliciting/undertaking an activity in securities, either explicitly or implicitly.</p>
<h2><b>Conclusion</b></h2>
<p>The powers of SEBI have been expanded several times by the Indian parliament. This is due to its critical position in the Indian financial system. SEBI is without a doubt one of India&#8217;s most powerful regulatory entities. By regulating the Indian financial industry through its 20 divisions, it plays a significant role in preventing big financial frauds.</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/analysis-of-sebi-authority/">An In-Depth Analysis of SEBI&#8217;s Authority</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
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		<title>What Are SEBI Regulations for Transfer of Physical Shares?</title>
		<link>https://muds.co.in/sebi-regulations-for-transfer-of-physical-shares/</link>
		
		<dc:creator><![CDATA[Shweta Gupta]]></dc:creator>
		<pubDate>Tue, 10 Aug 2021 10:12:22 +0000</pubDate>
				<category><![CDATA[SEBI]]></category>
		<category><![CDATA[physical shares]]></category>
		<guid isPermaLink="false">https://muds.co.in/what-are-sebi-regulations-for-transfer-of-physical-shares/</guid>

					<description><![CDATA[<p>Transfer of shares process to the demat account had a few glitches which confused the investors. However, the SEBI soon came up with the guidelines to clear the ambiguity in the process. This cleared the doubts of the investors regarding transfer of physical shares. In the following sections, we will learn in detail about SEBI [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/sebi-regulations-for-transfer-of-physical-shares/">What Are SEBI Regulations for Transfer of Physical Shares?</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p>Transfer of shares process to the demat account had a few glitches which confused the investors. However, the SEBI soon came up with the guidelines to clear the ambiguity in the process. This cleared the doubts of the investors regarding transfer of physical shares. In the following sections, we will learn in detail about SEBI guidelines on transfer of physical shares. We will tackle various issues faced by the investors while transferring physical shares and understand the board&#8217;s stand on those issues. The guidelines have come as a beacon of relief provided by the Board to the investors.&nbsp; So, without further ado, let us understand the SEBI guidelines for <a href="https://muds.co.in/recovery-of-shares/">transfer of physical shares</a>.</p>
<h2><b>Various Issues and their Solutions by the Board</b></h2>
<ul>
<li>What if the Transferor of shares doesn&#8217;t have the PAN card?&nbsp;</li>
<li>What to do in case of name or signature mismatch?</li>
</ul>
<p>The board had previously received a lot of queries on issues mentioned in the question above. The issues started coming up as the transferees faced difficulty in giving documents to the RTAs (Registrar and Transfer Agent) of companies. This adversely affected the process to transfer documents and securities of the investors.&nbsp;</p>
<p>To resolve this issue, the board has come up with standards for transfer of shares and securities in physical form. The board released a circular to clarify all the issues faced by the investors in transfer of their securities. The circular was released as per the Regulation 101 and 102 of LODR. These Regulations were aimed at resolving all ambiguity concerning transfer of shares in physical&nbsp;</p>
<h2><b>Standards for Transfer of Securities in physical Form</b></h2>
<ol>
<li>
<h3><b> Non-availability of PAN</b></h3>
</li>
</ol>
<p>To resolve this issue, the board has cleared that for the transfers executed before 01 December 2015 (prior to notification of LODR), the traders can be made with or without using PAN. However, the transfer should be done according to the requirements of quoting PAN for applicable Income Tax norms. This means that only the transfer executed after the notification of LODR should need the PAN of the transferor.&nbsp;</p>
<ol start="2">
<li>
<h3><b> Mismatch of Name in PAN or Signature in PAN or Share Certificate</b></h3>
</li>
</ol>
<p>Investors have faced such issues for so long. This was especially the case with female investors whose names were changed after marriage. In such a scenario, the board has suggested the use of the following documents as addition or supplement proofs for the names.&nbsp;</p>
<ul>
<li>Legal Marriage Certificate</li>
<li>AADHAR card&nbsp;</li>
<li>Copy of Gazette notification concerning name change of transferor.</li>
<li>Passport of transferor</li>
</ul>
<p>There were also situations where transferors couldn&#8217;t be traced or the signatures were mismatched as the transferors hadn&#8217;t updated their signatures in due time. To resolve this issue so that the buyer doesn&#8217;t feel stranded in case the transferor isn&#8217;t traced or the signature mismatch SEBI laid out the following guidelines:</p>
<ol start="3">
<li>
<h3><b> Rules for Signature Mismatch Resolution</b></h3>
</li>
</ol>
<p>The procedure to be followed in such situations has been elaborated in the Para (B)(2), Schedule VII of LODR.&nbsp; The brief procedure in such a situation is as follows:&nbsp;</p>
<ul>
<li>The transferor has verified his signatures by updating the signature with the bank and sharing its attested copy along with an affidavit and cancelled cheque in the name of Company. This should be submitted with the current contact details of the transferor.</li>
</ul>
<ol start="4">
<li>
<h3><b>Ways to Resolve Missing Transferor Issue</b></h3>
</li>
</ol>
<ul>
<li>To track a missing transferor, the RTAs can contact him by tracking his dividend history, KRAs or Depositories, contacting his bank or through any contact information provided to the Depositories. If in case, the transferor is not responding to these contact methods, the buyer can submit the following additional documents like, address proof of buyer, and indemnity bond in the SEBI prescribed format. An undertaking should also be submitted by the transferee stating that he/she will not try to transfer physical securities during the lock-in period. This lock-in period is of 6 months post the share transfer date. The lock in period is approved through a stamp affixed by the RTA. For further verification, RTAs can also ask details of the KYC.&nbsp;</li>
<li>The RTAs of the company should publish a notification in a national English daily newspaper informing about the transfer. The notification should ask for objections (if any) to be raised to the companies. It should also publish the notification in a regional newspaper of the area where the company’s registered office is located. The ad should mention that the objection must be raised within 30 days from the date of release of advertisement. A copy of the ad should also be published on the website of the listed entity.</li>
<li>If no objection is raised within 30ndaysbof release of transfer notification in the newspaper, the transfer will remain effective.</li>
<li>In the transfer notification, the names of the transferor and other relevant details should be mentioned. The details should be disclosed on the company&#8217;s website for 6 months. The same information is published on the stock exchange&#8217;s website as corporate information.</li>
</ul>
<ol start="5">
<li>
<h3><b> Rules for Differing Address</b></h3>
</li>
</ol>
<p>If the address registered with the RTA differs with the address attested by the bank of the transferor, then the RTA should update the new address after getting it verified from the bank. With this new rule in place, the hassles related to Differing Address will be resolved quickly.</p>
<p><b>To Conclude…</b></p>
<p>The <a href="https://muds.co.in/sebi-clarified-the-regulations/">SEBI</a> has released this circular to resolve most of the hassles encountered by the transferors. The circular includes solutions to many other issues as well. The target of the board is to reach hundred percent digitisation of shares in the minimal time. Physical Shares are the reason for a lot of problems. They could be damaged, are hard to trade from a remote place, and could be stolen too. Thus, Dematerialisation of such shares is the solution.</p>
<p>This is the reason why the board is working aggressively to remove all the hurdles in the way of transferring physical shares into a digital demat account. To understand the latest provisions and to easily conclude the process of share transfer, it is recommended to companies that they connect with a reputed finance and legal consultancy firm.</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/sebi-regulations-for-transfer-of-physical-shares/">What Are SEBI Regulations for Transfer of Physical Shares?</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
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		<title>Necessary Changes in Fdi Rules to Ensure That No Indian Company is Left Exposed to &#8216;opportunist&#8217; During This Covid-19 Pandemic.</title>
		<link>https://muds.co.in/necessary-changes-fdi-rules-ensure-no-indian-company-left-exposed-opportunist-covid-19-pandemic/</link>
		
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		<pubDate>Thu, 23 Apr 2020 04:25:14 +0000</pubDate>
				<category><![CDATA[Corporate Laws]]></category>
		<category><![CDATA[SEBI]]></category>
		<guid isPermaLink="false">https://muds.co.in/necessary-changes-in-fdi-rules-to-ensure-that-no-indian-company-is-left-exposed-to-opportunist-during-this-covid-19-pandemic/</guid>

					<description><![CDATA[<p>As per the recent guidelines, it is clear that the Government of India is now officially in a protectionist mode. The grave impact of the novel coronavirus outbreak on the global economy is something that no one can comprehend until countries, including India, come out of lockdown. The move which is being received with hope [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/necessary-changes-fdi-rules-ensure-no-indian-company-left-exposed-opportunist-covid-19-pandemic/">Necessary Changes in Fdi Rules to Ensure That No Indian Company is Left Exposed to &#8216;opportunist&#8217; During This Covid-19 Pandemic.</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p>As per the recent guidelines, it is clear that the Government of India is now officially in a protectionist mode.</p>
<p>The grave impact of the novel coronavirus outbreak on the global economy is something that no one can comprehend until countries, including India, come out of lockdown. The move which is being received with hope and enthusiasm for the most part in India amid fears of takeover and acquisition, the Department for Promotion of Industry and Internal Trade (DPIIT) has by Press Note No. 3( PN 3)&nbsp; amended the <a href="https://en.wikipedia.org/wiki/Foreign_direct_investment">Foreign Direct Investment (FDI)</a> policy for curbing and controlling the ‘opportunistic takeovers and acquisitions of Indian companies due to the current COVID-19 pandemic’.</p>
<p>The new amendment requires certain investors to follow the government approval route alone, and not under the direct route of investment. In other words, with the new amendment, Foreign Direct Investors in these cases would require approval from the Government of India to invest, which would mean that the government would be able to monitor the extent of these investments and give its approval accordingly.</p>
<h3><b>Impact of PN 3 of 2020 on Entities</b></h3>
<ul>
<li>While any existing investments by Chinese entities will not be impacted, any fresh infusion of funds by Chinese entities would now require government approval. Further, any transfer of shareholding by existing shareholders (including existing Chinese investors) to Chinese shareholders or to entities whose beneficial holding may be held by entities based in China, will also require the approval of the government.</li>
<li>&nbsp;It remains to be seen as to how existing contractual rights such as put and call options will be exercised, given that any further acquisition/divestment by Chinese entities are not under the approval route.</li>
<li>PN 3 of 2020 does not provide any concessions to investors who want to acquire/divest minority stake or non-controlling stake in an Indian company, and if such investor is based out of China or if the beneficial interest can be determined to vest with a Chinese entity.</li>
<li>The FDI Policy clarifies that prior approval of the government will not be required for additional foreign investments in the same entity within an approved foreign equity percentage or into a wholly-owned subsidiary. However, PN 3 of 2020 seems to be an exception to this rule. Now, a fresh infusion of funds by Chinese entities even in existing investments would require government approval.</li>
<li>Indian companies having existing Chinese investors, and which are in immediate requirement of funds, will not be required to explore alternate bridge funding opportunities to meet their operational requirements.</li>
</ul>
<p>At the first glance, the amendment of the FDI policy may be construed by many as one which seeks to protect Indian companies from takeovers by any foreign corporate entity, however, a detailed reading of this amendment brings to light one aspect i.e. the takeovers are being prevented by corporate entities that are located in a country which shares a land border with India. The new amendment has modified the earlier position which placed some restrictions on citizens and corporate entities of Bangladesh and Pakistan.</p>
<p>Geographically India shares its land borders with Pakistan, Bangladesh, Nepal, Myanmar, Bhutan, China and Afghanistan (although today, this portion of India’s territory has been illegally occupied by Pakistan, which India calls Pakistan-Occupied Kashmir). Of these countries, only Peoples Republic of China has the financial capability to indulge in takeovers and acquisitions as on date.</p>
<h3><b>Implementation and Enforcement</b></h3>
<ul>
<li>Presently, application for FDI approval of the government may take anywhere between 6-10 months for approval, depending on the relevant ministry or department process the application. Additionally, in the case of sensitive sectors like defense, telecom, private security, information and broadcasting, etc., investments from China are subject to security clearance from the Ministry of Home Affairs (MHA), and the same generally takes an additional 1-2 months.</li>
<li>Considering that all future investments from China will now be subject to government approval, the volume of applications from Chinese investors seeking the government’s approval is expected to amplify.</li>
<li>Since the definition of ‘beneficial ownership has been left open, it will be interesting to see how the government enforces the directive set out in PN 3 of 2020, in relation to companies/funds wherein Chinese investors may not be direct investors but may indirectly be beneficial owners through layers of investments.</li>
<li>A potential impact of the same may be the increased KYC requirements of authorized dealer banks who may seek additional information from non-Chinese investors to ensure that Chinese firms/entities do not have any beneficial interest in such investors.</li>
<li>PN 3 of 2020 covers investments from such countries which share a land border with India. This, however, does not fully clarify the status of investments from Hong Kong, which is a special administrative region of China. Considering that DPIIT tracks investment data separately for Hong Kong and China, it remains to be seen whether any investments from Hong Kong (or where the beneficial owners are from Hong Kong) will also require prior approval of the government.</li>
<li>It will not be out of place to point out that the notification and amendment to the <a href="https://muds.co.in/fdi-in-nbfc/"><strong>FDI policy</strong></a> come on the heels of the Government of India and clarification that required the Securities and Exchange Board of India (SEBI) to increase its scrutiny of investments in the Indian stock markets from China and Hong Kong.</li>
</ul>
<p>Moreover, the news regarding the People’s Bank of China raising its stake in a major Indian lender had been met with a lot of suspicions which resulted in various speculation that the Chinese companies could try and possibly take over Indian companies due to fall in the market price during this time of the pandemic.</p>
<p>The proponents of the open market theory may argue that the move of the Government of India seeks to target China, and chances are they may be right in that analysis. However, given the fact that COVID-19 originated from Wuhan province in China and with several countries taking precautionary measures to protect businesses and corporate entities operating from within its borders, this argument has a strong basis of its justification that if such takeovers do indeed take place, India may open from the lockdown and find several of its corporate entities operating under the beneficial ownership of Chinese corporate entities.</p>
<p>Additionally, this move by India is not the first of its kind by a State – Australia and several countries in Europe have already put in place plans and concrete measures to stop such opportunistic takeovers and acquisitions.</p>
<p>What is interesting to note is the fact that the Government of India is not today concerned with possible suspected takeovers from European or US-based corporate entities; rather its attention seems to be focused on corporate entities backed by the People’s Republic of China.</p>
<p>And there is a genuine reason for this. China is renowned for its investments which its critics argue are often opportunistic and are routed in areas where it seeks to increase its clout. The continent of Africa is an appropriate example of this. China has in the past years spent billions (quite possibly trillions) dollars in the continent seeking to increase its clout in the region. In fact, it has invested in its infrastructure projects, projects involving natural resources, and also various ports. China’s African dream, however, seems to be on a rocky patch presently, due to wake of allegations of widespread racism directed at African students studying in China who ironically were accused of being carriers of COVID-19 in African Continent, which resulted in Chinese envoys being summoned by many African governments in Africa and are seeking answers about the ill-treatment of African students and their eviction from their places of residence in China.</p>
<p>Along India’s borders, it is well-documented that China is seeking to increase its foothold in the region, and the China Pakistan Economic Corridor (which has constantly been met with opposition by India) that would give China access to ports is one such example of Chinese ingress in areas too close for India&#8217;s comfort. In fact, there are reports that say that China has increased its investments in infrastructure projects in Pakistan in light of this proposed project.</p>
<p>On the Indian front, Chinese investments in India have risen from $1.8 billion in 2014 to an estimated $8-9 billion in 2017. Greenfield investments have seen a substantial rise. Other Indian corporate entities have seen an influx of Chinese investments into it. These are not miniscule rises in investments.</p>
<p>When India opened up its market in the early 1990s with the helm of the Finance Ministry, the decision proved to be a move that saw the economy being given a shot in the arm and set India up to be a powerhouse in the decades to come.</p>
<p>Today, with its decision to restrict investments, the Government of India has decided that it is in India’s best interest to come out of this pandemic with its industries and corporate entities intact and still in Indian control.</p>
<p>Chinese companies investing in Indian corporate entities during the time of the global pandemic may not be the best idea, as argued by observers, given that there are fears among those in the industry that these corporate entities may be backed by the Chinese government to make inroads into global jurisdictions including India.</p>
<p>The move of the Government of India may not be fully protectionist in nature, but on the contrary, could be construed as one which will ensure that no Indian corporate entity will be shortchanged during this time of the pandemic.</p>
<p>India will come out of COVID-19, and when it does, there is absolutely no doubt that it would be in India’s best interest to have ownership of its corporate entities intact and in Indian control.</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/necessary-changes-fdi-rules-ensure-no-indian-company-left-exposed-opportunist-covid-19-pandemic/">Necessary Changes in Fdi Rules to Ensure That No Indian Company is Left Exposed to &#8216;opportunist&#8217; During This Covid-19 Pandemic.</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
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		<title>Can suspended companies be allowed to get listed on SME Exchange?</title>
		<link>https://muds.co.in/can-suspended-companies-allowed-get-listed-sme-exchange/</link>
		
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		<pubDate>Sat, 15 Feb 2020 07:30:10 +0000</pubDate>
				<category><![CDATA[SME IPO]]></category>
		<category><![CDATA[SEBI]]></category>
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					<description><![CDATA[<p>Finding it difficult to get listed on the mainboard? SME Exchange is the key to all your problems. Consult our SME IPO Listing Consultants for details or log on to www.muds.co.in SME Exchange is allocated for SMEs who otherwise find it difficult to trade their securities and shares. Initially, the SMEs found it difficult to [&#8230;]</p>
<p>The post <a rel="nofollow" href="https://muds.co.in/can-suspended-companies-allowed-get-listed-sme-exchange/">Can suspended companies be allowed to get listed on SME Exchange?</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
]]></description>
										<content:encoded><![CDATA[<p><strong><b><i>Finding it difficult to get listed on the mainboard? SME Exchange is the key to all your problems. Consult our <a href="https://muds.co.in/sme-platform-sme-ipo-india-explained/">SME IPO</a> Listing Consultants for details or log on to </i></b><a href="https://muds.co.in/"><b><i>www.muds.co.in</i></b></a></strong></p>
<p>SME Exchange is allocated for SMEs who otherwise find it difficult to trade their securities and shares. Initially, the SMEs found it difficult to involve themselves in satisfactory trading volumes while they were listed along with other stocks. Thus, SME Exchange became the well-known stock exchange approved by SEBI for the listing of securities.</p>
<p>For any organisation to be listed on the SME Exchange, its post-issue paid-up capital should not exceed ₹25 crores. The SME Exchange does not limit itself to the various SMEs as described by The Micro, Small and Medium Enterprise Development Act 2006 or the organisations where the finances allotted for plant and machinery does not exceed ₹10 crores.</p>
<p>Thus, the various organisations with paid-up capital between ₹10 to 25 crores have this option to migrate from Main Board (i.e. The National Stock Exchange) to the SME Exchange and vice versa.&nbsp;&nbsp;</p>
<h2><b>Process for migrating to BSE SME Platform</b>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</h2>
<p>The various organisations that are listed with identified stock exchanges and are looking for listing themselves on BSE SME Platform are required to satisfy the following norms:</p>
<table class="dcf-table dcf-table-responsive dcf-table-bordered dcf-table-striped dcf-w-100%">
<thead>
<tr>
<th scope="col">PARTICULARS</th>
<th scope="col">NORMS</th>
</tr>
</thead>
<tbody>
<tr>
<td data-label=""><b>Paid-up capital</b></td>
<td rowspan="2">Minimum of Rs.1 crore and maximum up to Rs. 25 crores, as on the date of making an application for the direct listing.<br />
As per the latest audited financial results,<br />
Net worth must be positive &amp; Net tangible assets of Rs. 3 Crores.</td>
</tr>
<tr>
<td data-label=""><b>Networth</b></td>
</tr>
<tr>
<td data-label=""><b> Track record</b></td>
<td data-label="">The company or the partnership/ proprietorship/LLP firm or the firm which have been converted into the company should have a combined track record of at least 3 years.<br />
In case a Company/Partnership/ Proprietorship/LLP has not completed its operation for three years then should have been funded by way of loan/equity by Banks or Financial Institutions or Central or State Government or its undertaking, or its Group Company should have been listed for at least two years either on the Main Board or SME Board of the Nationwide Exchange.</td>
</tr>
<tr>
<td data-label=""><b>Public Shareholding</b></td>
<td data-label="">It is a mandate to comply with the requirements of SCRA, SCRR as well as the Listing Agreement.</td>
</tr>
<tr>
<td data-label=""><b>No. of public shareholders</b></td>
<td data-label="">Minimum 50</td>
</tr>
<tr>
<td data-label=""><b>Migration</b></td>
<td data-label="">The organisations have an option to make a fresh application in order to migrate to the main board only after a period of two years from the date of listing on SME Platform, but it has to fulfil the norms of Direct Listing on the Main Board</td>
</tr>
<tr>
<td data-label=""><b>Appointment of Market Maker</b></td>
<td data-label="">
<ul>
<li>For a minimum period of 3 years from the date of listing on SME platform at least one Market Maker shall be appointed.</li>
<li>At least 5% of the issued capital of the company is to be held by the Market Maker on the date of listing of the company on SME platform</li>
</ul>
</td>
</tr>
</tbody>
</table>
<p>Along with the above-mentioned norms, an organisation at the time of taking shareholders permission before migrating to SME Exchange has to follow the below-mentioned pointers:</p>
<ul>
<li>Clearly indicate to the shareholders’ that once the migration procedure is complete, the equity shares held by them might multiply and thus, they would be able to offload the same during the market making period.</li>
<li>The shareholders’ permission is a mandate that needs to be fulfilled and their approval for delisting the securities from the recognized exchanges is required.</li>
</ul>
<h2><b>Conclusion</b></h2>
<p>Any suspended company is not at all permitted for listing on BSE SME Exchange until the suspension is quashed and the company is again granted permission to trade on the Main Board of BSE.&nbsp;&nbsp;&nbsp;&nbsp;</p>
<h4><b><i>For further details about SME IPO India and SME, IPO Eligibility contact our SME IPO Consultant at </i></b><a href="http://www.muds.com"><b><i>www.muds.co.in</i></b></a></h4>
<p style="text-align: center;"><strong><em>&#8220;The withdrawal of Jaiprakash Power Ventures insolvency application is a positive outcome which should be applauded as standing up to the established purpose of IBC. Even more, it shall be beneficial for all stakeholders in the long run.&#8221;</em></strong></p>
<p style="text-align: center;"><strong><em>-Shweta Gupta, Founder and CEO, MUDS</em></strong></p>
<p>The post <a rel="nofollow" href="https://muds.co.in/can-suspended-companies-allowed-get-listed-sme-exchange/">Can suspended companies be allowed to get listed on SME Exchange?</a> appeared first on <a rel="nofollow" href="https://muds.co.in">MUDS</a>.</p>
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