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  MUTUAL FUND SCHEMES BASED ON INVESTMENT OBJECTIVE Income Oriented Mutual Fund:  These funds offer a fixed income to investors and it has  lower risk as compared to growth funds. Under this scheme, the Asset Management  Company invests funds income oriented schemes like Bonds, Debentures, Government  Bonds & securities and commercial papers. Features (i) These schemes are generally have lesser risk as compared to Growth schemes. (ii) These schemes give fixed income. Growth oriented Mutual Fund: These funds offer capital appreciation over a period. Under  this scheme, the Asset Management Company invests funds in the equity shares which  have significant growth potential. Despite good return under this mutual fund scheme, there  is no assurance or guarantee of return. In other words, it is a scheme which has high risk  and high return.                              ...

  Securities Exchange Board of India   INTRODUCTION   SEBI is a body corporate having perpetual succession and a common seal with power to  acquire, hold and dispose of property, both movable and immovable and to contract,  sue and be sued in its own name. Its Head Office is at Mumbai and is empowered to establish its offices at other places in  India. SEBI presently has offices also in Ahmedabad, Jaipur, Kolkata, Guwahati,  Bhubaneswar, New Delhi, Chennai and Bengaluru. OBJECTIVE OF SEBI i. Protecting the interests of investors in securities; ii. Promoting the development of the securities market; and iii. Regulating the securities market.                                                            COMPOSITION OF SEBI i. A Chairman; ii. 2 members from Ministry of Central Government dealing with finance ...

  Functions of the State Pollution Control Board • Planning a comprehensive programme for prevention control and abatement of pollution of streams and wells. • Advising the state government regarding water pollution control or location of industries. • Conducting and encouraging investigations and research relating to different aspects of water pollution. • To collaborate with the Central Board for training personnel for handling water pollution programmes and organizing related mass education programmes. • Inspecting trade effluents and wastewater treatment plants. • Prescribing effluent standards for the sewage and trade effluents. • Evolving economical and reliable methods of disposal treatment and reuse of wastewater.                                                                     • Laying down the standard...

                        Steps for Registration of Society 1) Selection  Name for the Society A name should be selected for the society keeping in mind the following points: => Cannot use identical or similar name of a currently registered society => The name shall not suggest any connection with State Government or Government of India => It shall not contravene with the provisions of the Emblem & Names Act, 1950. 2) Draft Memorandum of Association contain:-  a. Name of the society; b. Objective of the society; c. Names, addresses & occupation of the members of the governing body, d. Place of registered office of the Society, and e. Names, addresses and full signatures of the 7 or more persons subscribing their names to the MOA. Their signatures should be witnessed.                                       ...

                                          FORMATION OF A SOCIETY How to make society :-  Under Section 1 of the Societies Registration Act, 1860, any 7 or more persons who have  come together for any legal pursuits, including literary, scientific, charitable or social  pursuits, may subscribe their names to a memorandum of association and file the same  with the Registrar and form themselves into a society under this Act.  The MOA filed with the Registrar should contain details such as the name and objectives of the society, names, addresses and occupations of the members of the governing body with which the management of the affairs of the society is entrusted.  A copy of the rules and regulations of the society should be provided. With the completion of these processes, the society could be registered with the Registrar after payment of a fee as specif...

  Consequences of Registration or Non-Registration of the Society The Societies Registration Act, 1860 lays down procedure for registration of societies for various bonafide purposes. The registration gives the society a legal status and is essential for:  => obtaining registration and approvals under Income Tax Act;  => lawful vesting of property in the societies;  => provides authenticity and recognition to the society before all authorities . => for opening bank accounts and transaction of business.Effect of Registration => Only after registration, the internal rules & regulations and bye – laws bound its members.                                                                     => The society can undertake only the activities which are mentioned in its objects. => A non...

   What is society, it's advantages & disadvantages  A society is an association of persons united together by mutual consent to deliberate, determine and act jointly for some common purpose.  Societies are usually registered for promotion of charitable activities like education, art, religion, culture, music, sports, etc.,  In India, The Societies Registration Act, 1860 lays down the procedure for society registration and operation in India.  The Act has been adopted by most of the State Governments with/without modifications as considered by the respective State Governments. According to Section 20 of the Societies Registration Act, 1860, societies can be formed for the following purposes:  i. Charitable societies,  ii. The military orphan funds or societies established at the several presidencies of India,  iii. societies established for the promotion of science, literature, or the fine arts for instruction, the diffusion of useful kno...

    Exemptions & procedure for registration of trust   Exemptions available to Charitable and Public Trust: Section 10 of the Income Tax Act, 1961 Total tax exemption is available for certain types of Trusts, if both the following conditions are satisfied - => The activities of Trust shall be related to sports, education, scientific professions, or promotion of khadi and village based industries, hospitals etc. and => They shall be notified as charitable or religious institutions.Section 11 of the Income Tax Act, 1961 If the trust is for any religious or charitable purpose then, any income, profits or gains earned by such trust from a property held by the trust shall not be included in the total income of the trust. Section 12 of the Income Tax Act, 1961 => Income received by way of voluntary contributions towards the corpus of the trust shall not be taxable. => If Charitable trusts are created for the benefit of any of the socially and economically backwa...

          What are the Duties,powers,& rights of a trustee   Duties of Trustee (Sec 11 to Sec 22) Duties of Trustee are as under: i. Proper execution of the trust as per the directions given in the instrument of the trust(Trust Deed). ii. Acquaintance(be familiar) with the nature of the trust property, so as to do justicewith the trust and it purpose. iii. Protect and preserve the trust property. iv. Not to set up an adverse title. v. To deal as a man of ordinary prudence would deal with such property as if it were his own. vi. To convert the property of a wasting nature into that of permanent nature. vii. To act impartially or in favour of all beneficiaries. viii. In case of a trust created for several people in succession, if one person is doing something injurious to the trust property, the trustee needs to take preventive steps ix. To maintain accurate accounts of the trust property and to invest the trust property and funds in the eligible securiti...

         TRUST - What is trust & trust definition in law & process,limits A Trust is a relationship in which a person or entity holds a valid legal title to a certain property which is known as the Trust property.  The Trust is bound by a fiduciary duty to exercise that legal title for the benefit of any one or more individuals or group of individuals or organisations, who are known as the Beneficiaries.  The Trust shall be governed by the terms of the Written Trust agreement also called as Trust Deed. Trust is defined in section 3 of the Indian Trust Act, 1882 as - => “an obligation annexed to the ownership of property  => and arising out of a confidence reposed in and  => accepted by the owner, or declared and accepted by him,  => for the benefit of another or of another and the owner.  In other words, it is simply a transfer of property by one person (the settlor) to another  (the “trustee”) who manages t...

                              SECTION 8 COMPANY act, 2013 An association which is registered u/s 8 of the Companies Act, 2013 is known as  Association not for Profit. Section 8 of the Companies Act, 2013 reads as under:  Section 8(1) : If Central Government is satisfied that a person or an association of  persons proposed to be registered under this Act as a limited company — a) has in its objects the promotion of commerce, art, science, sports, education,  research, social welfare, religion, charity, protection of environment or any such  other object;  b) intends to apply its profits, if any, or other income in promoting its objects; and  c) intends to prohibit the payment of any dividend to its members,  Then The CG may, by licence issued in prescribed manner, and on such conditions as it  deems fit, allow that person or association of persons to be registered as a ...

      Procedure for Registration of Section 8 Company 1) Obtaining Digital Signature Certificate (DSC) & Directors Identification  Number (DIN) Obtain the DSC of the persons who wish to be Directors in Sec 8 Company. File  Form DIR-3 with ROC for getting the DIN. 2) Name Reservation The promoter should apply for name reservation through RUN facility on MCA  website. 3) Draft MOA /AOA The object clause of MOA should include promotion commerce, art, science, sports,  education, research, social welfare, religion, charity, protection of environment or  any related object.                                                                         4) Application for Obtaining License from Government Once name is reserved, an application will be made for obtaining licence in ...

              Additional Role under lodr of nomination & remuneration  => Formulation of criteria for evolution of performance of Independent director and  the Board of Directors. => Devising a policy on diversity of Board of Directors. => To extent or continue the terms of appointment of Independent Director. => The role of the NRC of the board of a listed entity will also include recommendations  made to the board on all the payments made, in whatsoever form, to the senior  management. Note : “senior management" by specifying that it comprises all members of the management one level below the chief executive officer/managing director/whole-time director/manager (including chief executive officer/manager, in case they are not part of the board) as well as the company secretary and the chief financial officer. Meeting : NRC is required to meet at least once in a year.  The quorum for a meeting of the NRC shall b...

  Additional Role of Audit Committee in LODR: The role of the Audit Committee  includes the following : * Oversight of company's financial reporting process & disclosure of financial  information. * Recommending to the Board appointment, re-appointment and the replacement or  removal of the statutory auditor and the fixation of audit fees. * Approval of payment to statutory auditors for any other services rendered. * Reviewing, with the management, the annual or quarterly financial statements  before submission to the board for approval. * Reviewing, with the management, performance of statutory and internal auditors,  and adequacy of the internal control systems. * Reviewing the adequacy of internal audit function. * Scrutiny of inter-corporate loans and investments. * Valuation of undertakings or assets of the listed entity, wherever it is necessary. * Evaluation of internal financial controls and risk management systems. * Discussion with internal au...

          NOMINATION AND REMUNERATION COMMITTEE The Nomination and Remuneration Committee helps the Board relating to the  appointment of the members of the Board. This Committee finalises the conditions of  employment and remuneration of senior management, and to management's and  personnel's remuneration and incentive schemes. NRC provisions in Companies Act [Section 178 of the Companies Act, 2013] Constitution of Nomination Committee:  The following companies are required to constitute a Nomination Committee: 1. Every listed Public Companies, or 2. Unlisted public companies having: a) paid-up capital of Rs. 10 Crore or more; b) turnover of Rs. 100 Crore or more; c) aggregate, outstanding loans or borrowings or debentures or deposits exceeding Rs. 50 Crore or more. Special Note : Dormant and Section 8 Companies not required to constitute NRC. Note : The calculation of above paid-up share capital or turnover or outstanding loans  etc. s...

                STAKEHOLDERS RELATIONSHIP COMMITTEE (SRC) SRC provisions under Companies Act, 2013 [Section 178(5) of the Companies Act,  2013] Constitution : A company has to constitute a "Stakeholders Relationship Committee"  where such company has more than 1000 shareholders, debenture-holders, deposit- holders and any other security holders at any time during a financial year. Note : The provisions of this section are not at all clear regarding the constitution of  Stakeholders Relationship Committee. Chairperson : The Chairperson of a Stakeholders Relationship Committee shall be a  non-executive director or other member of the Board. This committee considers and  resolves the grievances of security holders of the company. Note : The Chairperson of each of the committees or in his absence, any other member  of the committee duly authorised by him, shall attend the general meetings of the  company. SRC provisi...

                                            AUDIT COMMITTEE Audit Committee is one of the main pillars of the corporate governance mechanism in  any company. The Committee is charged with the principal oversight of financial  reporting and disclosure. The constitution of Audit Committee is mandated under the Companies Act, 2013 and  SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Audit Committee Provisions in Companies Act Section 177 of the Companies Act,  2013 Constitution of Audit Committee : As per the provisions of the Companies Act, 2013,  the following companies are required to constitute an Audit Committee: - 1. Every Listed Public Companies, or 2. Unlisted public companies having: (a) Paid-up capital of Rs. 10 Crore or more; (b) Turnover of Rs. 100 Crore or more; (c) Aggregate, outstanding loans or borrowings or debentu...

                                         Types & benefits of listing => Initial Listing : If the shares or securities are to be listed for the 1st time by a  company on a stock exchange is called initial listing. => Listing for Public Issue : When a company whose shares are listed on a SE comes  out with a public issue of securities, it has to list such issue with the SE. => Listing for Rights Issue : When companies whose securities are listed on the SE issue securities to existing shareholders on rights basis, it has to list such rights  issues on the concerned SE. => Listing of Bonus Shares : Shares issued as a result of capitalization of profit through  bonus issue shall list such issues also on the concerned SE.                                       ...

  Mercantile Law or Commercial Law It is that branch of law which is applicable to or concerned with trade and commerce in connection with various mercantile or business transactions.  Mercantile Law is a wide term and embraces all legal principles concerning business transactions.  The most important feature of such a business transaction is the existence of a valid agreement, express or implied, between the parties concerned.                                                                                The following are the main sources of Mercantile Law in India: 1. English Mercantile Law:  The Indian Mercantile Law is mainly an adaptation of English Mercantile Law. However, certain modifications wherever necessary, have been incorporated in it to  provide for l...

            What do you mean by private company   PRIVATE COMPANY  A company, which has a minimum paid-up share capital as may be prescribed and which by its articles provides the following:  i. Restricts the right to transfer its shares;  ii. Except in the case of OPC, limits the number of its members to 200 excluding present and past employees who continue to be the members of the company (here joint members shall be counted as one); and  iii. Prohibits any invitation to the public to subscribe for any securities of the company.  There should be at least 2 persons to form a private company. A private company should have at least 2 directors. The name of a private limited company must end with the words "Private Limited".                                                           ...

                                                         POWERS OF SEBI  1. Power to make or amend Bye-laws of Recognised Stock Exchanges SEBI has power to make or amend bye-laws of a RSE.  Following are the requisites to use this power: * SEBI can use this power suo-motu (on its own) or on a request made by  governing body of stock exchange. * It can exercise such power if it is satisfied after consultation with the governing  body of the stock exchange that it is necessary or expedient to do so. * Such bye-laws should be published in the Official Gazette. * It will be effective from the date of publication in Official Gazette. * It will take effect as if the bye-laws are made by the RSE. * The making or the amendment or revision of any bye-laws shall in all cases be  subject to the condition of previous publication. ...

                            How to open electric vehicle charging station in india In India, At present time the demand of electric vehicle are increasing rapidly, because in the view of high level of pollution in our environment. The natural resources like petrol and diesel are about to finish in upcoming 10-18 years.  In the view of this the Indian automobile industries are decide to make electric vehicle in India, so we can control the pollution level in environment.in future the demand of electric vehicle charging stations will very high, so,  it is a good business to do.                                                                            Franchise of tata:-  Process of opening electric charging station th...

                                                   What is mutual fund INTRODUCTION Mutual fund is a process of pooling resources from the investors and investing funds in securities. The process of pooling the resources together and. issuing units to the investors and then investing funds in securities is known as the scheme of "Mutual Funds". In other words, it works like a trust which pools the savings of investors and invests these in capital and money market instruments. Mutual funds offer good investment opportunities to the investors. Like all investments, they also carry certain risks. Primary Players * Sponsor : A sponsor is the one who establishes the Mutual Fund. He is the promoter of  the Mutual Fund. The sponsor is required to invest at-least 40% of the Net worth of the  mutual fund. * Trustees : Trustees are the ones who hold property ...