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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 ...

              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.                                       ...

                                                         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. ...

                                                   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 ...

      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 ...

  Stock-broker & Sub-broker:  Stock Broker is a member of stock exchange and they are intermediaries who are  allowed to trade in securities on the exchange. They buy and sell on their own behalf as  well as on behalf of their clients. A stock broker plays an important role in the  secondary market helping both the seller and the buyer of the securities to enter into a  transaction. When executing an order the stock broker may on behalf of his client buy or  sell securities from his own account i.e. as principal acts, as an agent. Sub-broker means any person not being a member of stock exchange who acts on behalf  of a stock broker as an agent or otherwise for assisting the investors in buying, selling  or dealing in securities through such stock brokers.                                                     ...

                     The securities and 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.                                                     ...