Over the years of its operation, ITC has developed into a famous brand in the food and household items manufacturing sector. For investors, it has given healthy returns from its operations and came with bonus dividends from time to time. Thus, if someone had holdings of just 300 shares of ITC older than 25 years, then the investment in today’s scenario turned into a million-dollar returns ex......

If you have just found some of the old forgotten stocks of Nestle India in your father’s name or you have old certificates of investment in Nestle from the 90s then this blog is for you. Stocks of Nestle India Limited were floating at a price of more than Rs. 16, 000 per share in the stock market as of February 2021. If you haven’t kept a note on share growth of Nestle in the past two ......

Sexual Harassment is among the foremost basic dangers to any association or company. Workplace harassment isn’t just an unlawful activity restricted to the workplace. Harassment within the work environment has transformed into an important field of concern. Since the introduction of the POSH Act, the no. of cases of sexual harassment have shot up as the female employees now have a tool to ad......

Dormant shares have become a common thing in the Indian financial market. This is especially true for companies who are operating for decades and had their IPO released in the 70s or 80s. Now, even a small amount invested in these firms at that time could value a lot more in these times. This is especially true for firms like Eicher motors whose shares had a low value for most of their business hi......

What is ROC? Registrars of Companies (ROC) appointed under Section 609 of the Companies act covering the various states and Union Territories are vested with the primary duty of registering companies and LLP’s floated on the respective states and the Union Territories and ensuring that such companies and LLPs comply with statutory requirements under the ACT. The Registrar of Companies (ROC)......

Suppose your father brought some shares of a company 30 or 40 years ago and forgot about them. Now, after so many years, you find the physical share certificates and don’t know how to claim the associated dividends. If that is the case, then you are not in the possession of these shares anymore, although you are the rightful owner of the same. As per the Government’s regulations regard......

The Delhi High Court recently passed an order for removal of directors’ disqualification of petitioners who were directors of Kushal Power Projects Private Limited (struck-off) and Koksun Papers Private Limited (Active). They were disqualified due to the retrospective application of the Companies Amendment Act 2018, in June 2017. The Court also considered the role of Companies Fresh Start Sc......

Genesis of GST The Goods and Services Tax (GST) was initiated in India in the year 2000 but was implemented in 2017 after becoming an Act. Hailed as the most important indirect tax reform since independence, the GST Act has been framed with the intention to streamline taxes and introduce a comprehensive and uniform system of taxation for goods and services across India. Main Features of GST App......

In its objective to usher ineffective economic reforms, the government passed the Insolvency and Bankruptcy Code (IBC), 2016. This was hailed as a positive step by all stakeholders as it shifted the focus from ‘debtor in possession’ to the much needed ‘creditor in control’ when dealing with debts, defaults and financial failures of Corporates.   IBC 2016 is a com......

Role of MSMEs in India The contribution of MSME i.e. Micro, Small and Medium Enterprises, in a country’s economic growth & development, has been recognized by all countries and hence, is of paramount importance for India too. The benefits drawn from MSME in India are: A catalyst for the economy’s growth Creates job on a large scale Helps in sustaining economic growth Propel......

When the Insolvency and Bankruptcy Code, 2016 (IBC) was implemented in August 2016, it brought great cheer in the Indian market and was hailed by all stakeholders and industry experts as “The Act”.  It was believed that IBC is a comprehensive, consolidated and single law that lay down a robust framework for Insolvency and Bankruptcy, would resolve cases of the bad loan in the spe......

With a strong determination to cleanse the economic environment, make the processes transparent and improve India’s ranking in ‘ease of doing business index’, the Modi government embarked on introducing several economic reforms. In a series of new regulations, Insolvency and Bankruptcy Code 2016 (IBC), which came into force in August 2016, is undoubtedly a remarkable piece of le......

"The intent of the Code cannot be questioned and the hurdles arising can be said to be teething problems as it is in its infancy." - Kritika Chabbra  The Insolvency and Bankruptcy Code, 2016 (Code) is a Codification of Sections of various previous Acts to deal with corporate insolvency and bankruptcy. Hailed as a comprehensive economic reform, IBC was hailed as the fastest and most effectiv......

"The Insolvency and Bankruptcy Code, 2016 is still in its infancy and hence, evolving gradually as the ambiguities, gaps and loopholes emerge, case after case." IBC: A reform welcomed by All! The Modi government, in tandem with its poll promises and manifesto, has been sincerely working on improving the economic environment by taking up several reforms. One more step in this direction is the imp......

Like big companies, Small and Medium-sized Enterprises (SME) owners want to get their companies listed on the stock exchanges. This can give them access to capital that could be invested in driving economic development. However, not all SMEs fulfil their dream of getting listed as they fail to meet the SME IPO Listing requirements for listing on the BSE and the NSE. The significance and role of S......

IBC 2016 The Insolvency and Bankruptcy Code (IBC) is one of the most well-intentioned and ambitious piece of economic legislation passed by the government. The objective of the Code can be said to be: “An Act to consolidate and amend the laws relating to reorganization and insolvency resolution of corporate persons, partnership firms and individuals in a time-bound manner for maximization ......

Supreme Court’s landmark judgement: Essar Steel insolvency case has seen a satisfactory closure of what was seen as an intriguing saga of insolvency, with numerous twists & turns! - Kritika Chabbra (Market Analyst, MUDS Management Pvt. Ltd.) Insolvency and Bankruptcy Code In its sincere desire to usher in economic reforms and improve the financial ecosystem, the Modi government has co......

RP’s Arrest Creates Ripples The arrest of Arun Mohan, an Insolvency Resolution Professional (IRP), appointed by the National Company Law Tribunal (NCLT), was covered widely in the Indian media and created ripples in the business world. It was so widely reported because it is the first of its kind of a case which is related to graft by any NCLT appointed IRP, since the implementation of the......

SMEs: Driver of Economic Growth Small and medium enterprises are a major contributor towards the economy of a nation, and more so, in a developing country like India. An estimated number of 52.50 million, registered and unregistered SMEs account for 95% of the total industrial units in India, providing employment to almost 60 million people. Direct Advantages of SMEs   Generates Jobs&n......

Has Strike Off Of The Company Shattered Your Dreams? You are aware that implementation of Companies Act 2013 has brought about lots of vital changes and amendments in comparison to Companies Act 1956. One of the major clauses, under Section 248, is that non-compliance of Annual Returns and Financial Statements for the previous three years, would lead to dire consequences and the company shall be......

Buying a home is every person’s desire. A homebuyer works day in and out to earn bread and butter to meet his livelihood. In the ongoing work cycle the goal is not only to meet the routine life expenses but also save a certain fraction of money from the hard-earned cash. The intent of savings is to secure the after retirement life and also to have sources of investment to meet unforeseen cir......

What are ESOPs?Employee Stock Ownership Plan also commonly known as ESOP, is a skillful and well defined plan that is meant to provide advantage to both the employee as well as the employer, in which an employee mainly invests in the stock of the sponsoring company.   The main motive of the Employee Stock Option Plan is not only to maintain the focus of the employees on their company&rs......

The procedure for incorporation of NBFC under Companies Act, 2013 has been further made easy. The streamlining being done is as follows: Now an NBFC can be directly registered with MCA. No prior approval is required from RBI. RBI comes into picture only post the incorporation of the NBFC i.e Private/Public Company. Without receiving the NBFC license from RBI, no company can b......

On February 21, 2019, the Ministry of Corporate Affairs (MCA) has introduced the new e-Form 22A, of Companies (Incorporation) Amendment Rules, 2019. Also known as e-Form ACTIVE (Active Company Tagging Identities and Verification), it introduces KYC for the companies. Applicable on: It is applicable to all companies incorporated on or before December 31, 2017. The companies that are NOT......

Garner all information about Phantom Stocks & how they work!   In today’s cutthroat competition prevailing in corporate sectors like e-commerce or start-ups, etc., employees have plenty of job opportunities and they are lured not only by high pay packages but also by the various perks and incentives. Under such circumstances, the companies have to work towards incentivizing their ......

NBFCs Do Matter! The Non-Banking Financial Companies (NBFCs) are playing a pivotal role in India’s growth story in recent years. With RBI relaxing the norms for NBFCs, there has been a spate of registrations. The financial needs of such a huge population are hardly catered to by a limited number of Banks and sensing this gap the private players have jumped to occupy this space.   ......

An Easy Resolution To A Grim Situation! Quite a few positive news, from various Courts, has trickled in regarding the removal of Directors disqualification. In a major victory for the aggrieved Directors, in December 2018, the Gujarat High Court quashed the MCA list of September 12, 2017, and in addition, started granting interim relief leading to activation of DINs. Likewise, High Courts of Karn......

After the liberalization of the Indian economy in 1991, India has witnessed a significant interest of foreign investors in the Indian  Non-Banking Financial Company (NBFC)   sector.  While the provisions of foreign investment and foreign exchange are now regulated by the FEMA, 2000, the working and operations of NBFCs are regulated by the Reserve Bank of India (RBI) within the frame......

Non-Banking Financial Companies play a vital role in promoting inclusive growth in the country by catering to the diverse financial needs of the customers excluded by the banks. They provide financial services to the micro, small and medium enterprises or those individuals who are not able to take services from banks. They have a generous contribution to the employment generation, wealth creation;......

There are different types of Non-Banking Financial Companies (NBFCs) licensed by RBI. NBFCs are classified (a) by the type of liabilities into Deposit and Non-Deposit accepting NBFCs, (b) by their size of non-deposit taking NBFCs into systemically important and other non-deposit holding companies (NBFC-NDSI and NBFC-ND) and c) by the kind of activity they conduct. In a modern approach based on th......

A  Reserve Bank of India press release dated 08/04/1999 explains that a  company will be treated as an NBFC if its financial assets are more than 50 percent of its total assets,  and income from financial assets should be more than 50 percent of the gross income. Both these tests are required to be satisfied as the determinant factor for the principal business of a company. The que......

The Insolvency and Bankruptcy Code 2016 not only enables the insolvency proceedings of the insolvents but also the code contains provisions for solvent entities that want to themselves surrender their business and refrain from carrying on their business. To be eligible for voluntary liquidation, the solvent entity must be in a state to pay off its debts. The Central Government on 30th March 2017 ......

Employee Stock Ownership Plan also commonly known as ESOP, is a skillful and well-defined plan that is meant to provide an advantage to both the employee as well as the employer, in which an employee mainly invests in the stock of the sponsoring company.   The main motive of the Employee Stock Option Plan is not only to maintain the focus of the employees on their company’s overal......

Dear Professional Colleagues,The Reserve Bank of India has presented another class of non-banking finance company, NBFC-Factor. A factor is an organization which purchases another organization's records receivable (solicitations) at a markdown, accept credit danger of the record and recuperates money toward the finish of the credit time frame. The Non-Banking Financial Company-Factors (NBFC-......

The Insolvency and bankruptcy code was notified and came into execution since December 2016. The code at its entry stage repealed the existing legislation which had become outdated and unfruitful with the passage of time. The code is not an easy legislation as the drafters have really worked hard to create a masterpiece legislation that can cater solutions to all sorts of disputes in a time-bound ......

SOCIETY INTRODUCTION An association of several individuals who combined together for usually achieving the purpose of advancement of charitable activities like sports, music, culture, religion, art, education, etc it will be deemed as a society. In India, a society can be registered as a legal entity via following eh procedure mentioned under The Society Registration Act, 1860 which lays down c......

Top 5 Facts to Know about Insolvency and Bankruptcy Board Meetings Fact #1: At Least 4 meetings are to be done in a year and 1 meeting in a quarter. Fact #2: The Chairperson (or one nominated by Chairperson) heads the meeting Fact #3: Any 3 members are required to start the meeting Fact #4: The meeting will be held at time and place (generally at headquarters) mentioned in the ......

One of the strata of business which can give you a substantial level of profit is no other than the cash trade. In this sort of business, what you have to get associated with is cash and budgetary exchange. Through this, you will have a vast measure of additions which can make you ready to battle subsidence whenever. In the event that you know how to work this sort of business legitimately, y......

In this article, we will discuss DIN, its associated concepts and facets. What is DIN? DIN stands for Director Identification Number. It is an eight-digit unique number allotted by the Ministry of Corporate affairs, Central Government of India to a person who wishes to become a director in the company. DIN is person specific i.e. unique for a particular person. DIN provides distinguished identi......

Dear Professional Colleagues,Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, and it deals in the business of loans and advances, acquisition of shares,  bonds/stock/ debentures/securities issued by Government or local authority or other securities of marketable nature, hire-purchase, leasing, chit business insurance business. But it does not include any i......

1#: THE DAWN OF MODI ERA, 2014: The sunset of the UPA govt. was predicted even before the elections took place. The final phase of Mr. Manmohan Singh’s regime was marred in controversies of laxity and corruption. The economic condition was precarious; cases of corruption, fraud, money laundering, black money hoarding, etc. resulted into low GDP growth and high inflation. The sentiments......

Dear Professional Colleagues,After the liberalization of the Indian economy in 1991, India has witnessed a significant interest of foreign investors in the Indian  Non-Banking Financial Company (NBFC)   sector.  While the provisions of foreign investment and foreign exchange are now regulated by the FEMA, 2000, the working and operations of NBFCs are regulated by the Reserve Bank of......

Dear Professional Colleagues,While Non-Banking Financial Companies (NBFCs) in India are doing well, there is a growing interest in the country to register new companies. It is, therefore,   important to know the eligibility norms to start an NBFC business. The following paragraphs intend to highlight such essential norms for different types of NBFCs.Requirements for registration of NBFCs......

Dear Professional Colleagues,With a high growth rate every year, there are many ways in which internet has affected the financial services sector including the NBFCs in India. To differentiate their services and gain an advantage over the rising competition, the Non-Banking Financial Companies (NBFC) are trying to provide their services online to the customers. This is one of t......

Dear Readers,In this Article, we will discuss about the solutions that can be provided to Aggrieved Persons (Directors) even after the expiry of the CODS Scheme, 2018, Grounds on which an appeal can be filed before the High Court, National Company Law Tribunal, Benefits available to the Directors after the expiry of the CODS Scheme, 2018 etc. A Writ of Certiorari can be filed under Article 226 of......

Dear Professional Colleagues,NBFCs as financial institutions refer to a set of rules and regulations which keep on changing on the basis of changing needs and situations. It is important for the NBFC management to know what to do and how to do, and there is a strong need to keep abreast with the times. The managers who follow the rule book or the manual of NBFCs have a strong chance of compliance......

Dear Professional Colleagues,While Non-Banking Financial Companies (NBFCs) in India are doing well, there is a growing interest in the country to register new companies. It is, therefore,  important to know the eligibility norms to start an NBFC business. The following paragraphs intend to highlight such essential norms for different types of NBFCs.Requirements for registration of NBFCs with ......

Dear Professional colleagues,Industry benchmarking is used to establish performance standards and detect trends in a broader competitive environment. Non-Banking Financial Corporations (NBFCs) see benchmarking as a tool to compare product attributes, quality, operations, and processes. It is recognized that besides competition and other factors; laws, rules, and regulations contribute to......

Dear Professional Colleagues,The non-banking financial companies (NBFCs) which are heterogeneous in nature in term of activities and size are important financial intermediaries and an integral part of the financial system in India. They have been able to carve out a niche for themselves in meeting the credit needs of both wholesale and retail customers. “While the NBFCs have earned a respec......

Dear Professional Colleagues,Market Regulator RBI has issued various Show Cause Notices to Non-Banking Finance Companies who have failed to communicate the name, designation and address of the principal officer to Financial Intelligence Unit- India (FIU-IND) as directed in respect of Cancellation of Certificate of Registration for violations and non-compliances to carry on the business of non......

Dear Professional Colleagues,Non-Banking Financial Companies (NBFCs) have been making important contributions to India’s economy. However, the Reserve Bank of India (RBI) still controls the working of all NBFCs under the framework of RBI Act, 1934 and directions issued by it from time to time.   -Isha Malik (Company Secretary, MUDS Management Pvt Ltd) Every NBFC, in order to carry out......