April 22, 2024

Creation & Modification of Charge as per Companies Act, 2013

Companies Act 2013 / /

Charge as per section 2(16) of Companies Act, 2013 refers to creation of interest or a right on a property or asset of a company or any of its undertaking as a security against loan provided to the company in respect of such interest. Charge is created by Companies who are in need of financial assistance for making their companies productive and in doing so creating any right or interest in assets of companies. Charge also includes mortgage. Charge is created so that the financial institutions such as banks have security for the loans provided by creation of charge on assets of company and having it registered with the Registrar. What is a Charge? As per Section 2(16) of Companies Act 2013, “charge” means an interest or lien created on the property or assets of a company or any of its undertakings or both as security and includes a mortgage. According to Section 100 of the Transfer of Property Act, 1882, where an immovable property of one person is by act of parties or operation of law made security for the payment of money to another and the transaction does not amount to a mortgage, the latter person is said to have a charge on the property, and all the provisions which apply to a simple mortgage shall, so far as may be, apply to such charge. How is it related to Pledge and Hypothecation? As per section 172 of the Indian Contract Act, 1872, “pledge” means the bailment of goods as security for payment of a debt or performance of a promise. As per Section 2 of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, “hypothecation” means a charge in or upon any movable property, existing or future, created by a borrower in favour of a secured creditor without delivery of possession of the movable property to such creditor, as a security for financial assistance and includes floating charge and crystallisation of such charge into fixed charge on movable property. Charge is where immovable property of one person is made security for the payment of money to another. It refers to the security for securing the debt, by way of pledge, hypothecation and mortgage. In the pledge, the possession of the asset is transferred, but in the case of hypothecation, possession lies with the debtor only. Type of Charges Fixed Charges: Charge created on Fixed Assets of the company. Floating Charges: Charge created on Current Assets or the Stock of the company. Essential Features of the Charge There should be two parties to the transaction, the creator of the charge and the charge holder. The subject-matter of charge must be current or future assets and other properties of the borrower. Both the parties to the transaction must enter into a legal agreement specifying assets or properties kept as security for the repayment of money, interest rate charged etc. A charge may be fixed or floating depending upon its nature. What is Modification of Charges? The term ‘modification’ includes variation of any of the terms of the agreement including variation of rate of interest which may be by mutual agreement or by operation of law.Even if the rights of a chargeholder are assigned to a third party ,it will be regarded as a modification. The provisions applicable to the registration of a charge under Section 77 shall apply to modification of the charge. Time Limit for Registration of creation or modification of ChargesA company creating charge, shall register the particulars of the said charge with the Registrar of Companies (ROC) within 30 days of its creation. According to Companies (Registration of Charges) Rules, 2014 e-forms prescribed for the purpose of creating or modifying the charge are as follows: For other than debentures: Form No.CHG-1 For Debentures including any rectification: Form No.CHG-9 Who is liable to register Charge? As per Section 77 of the Companies Act, 2013 every company creating a charge shall register the particulars of charge signed by the company and its charge – holder together with the instruments creating.Any charge created within or outside India on property or assets or any of the company’s undertakings Whether tangible or otherwise, situated in or outside India shall be registered. Hence all types of charges are required under the Act to be registered whether created within or outside India. Certification of Registration of Charge When a charge is registered with the Registrar, Registrar shall issue a certificate of registration of charge in Form No.CHG-2 and for registration of modification of charge in Form No.CHG-3 to the company and to the person in whose favour the charge is created. The certificate issued by the Registrar shall be the conclusive evidence that the charge is registered. Delay in Registration of Charges If Charge is created before 02.11.2018: Within A period of 300 days from the creation of charge If charge is created after 02.11.2018: Within a period of sixty days of creation of charge. However, additional fees is applicable in this case Register of Charges to be kept by Registrar (ROC) The Registrar shall, in respect of every shall keep a register containing particulars of Charges registered, in such form and in such manner as may be prescribed Register shall be kept open for inspection by any person on payment of such fees as may be prescribed Duty of CompanyEvery company shall maintain at its registered office a Register of Charges in e-form CHG-7 which shall be open for inspection by: Any member and creditor Without any payment By any other person on payment of such fees as may be prescribed Provisions under Companies Act 2013 & Companies (Registration of Charges) Rules, 2014 Section 77 with Rule 3 & Rule 6Duty to Register Charges – Every company shall register the charge with Registrar of Companies (ROC) within 30 days of the date of creation or modification of charge along with the fee. Purpose Form Attachments Creation/Modification of charge other thanDebenture CHG-1 Particulars of chargeCopy of Instrument evidencingany creation or modification ofcharge Creation/Rectification of charge for Debenture CHG-9   The ROC on receipt of Application

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Jda patta

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A Patta is a legal document issued by the Grah Nirman Sahakari Samiti which is authorized by the Co-Operative Society of Rajasthan in the name of the owner of a piece of property. As per the regulations, the Jaipur Development Authority handles the process of issuance of Patta. The society issues  only Land Allotment letter.It is usually received from the Jaipur Development Authority in the administrative district in question. Separate Pattas will not be granted if a single property has several owners. In such circumstances, there will be a single Patta with the names of all co-owners clearly written on it. It’s also worth noting that Patta will not be awarded for land with unequal portions. What do you mean by Patta A Patta is a legal document issued by the Government in the name of the actual owner of a particular plot of land. It can also be issued for lands having buildings or individual houses etc. constructed on them. But for these types of properties, it can be shown that the property is being continuously occupied which is not possible for any barren tract of land. In most cases, it can be obtained from the Tehsildar’s office in the concerned administrative district. If there are several owners for a single property, separate Pattas will not be issued. In such cases, there will be one Patta with the name of all the co-owners mentioned clearly. It is also important to remember that Patta will not be issued for lands having undivided shares. The Importance of Patta It is a very important record of ownership. Transactions involving the land in question require a Patta. It can also be used to establish the right of ownership in a court of law. Compensation from land acquired by the Government is a major problem. But it can be easily solved if the owner of the property has a Patta in her/his name. This proves, beyond doubt, ownership of the property and remuneration could be obtained without much of a hassle.    In some cases, Patta can be transferred from one person to the other. These are usually special situations where, for example, there is no Will drafted by a person before his death. In such cases, the next of kin are automatically entitled to the Patta and can apply for the transfer to their name(s). A convenient feature of Patta is the fact that it need not be renewed from time-to-time. A renewal must be done only after a transfer or a transaction has taken place with respect to the property. Difference between Society Patta Properties and JDA Approved Properties In India, the apartment lifestyle has practically taken control of the housing sector. However, some people in tier 2 and tier 3 cities still prefer to buy plots and build their own homes according to their requirements. To put together a house, you should think about a few things carefully, such as the cost, financial assistance, benefits, and so on. A property approved by the Jaipur Development Authority, will have concerns with basic facility availability and legal documents of the property, however, the same can be used as collateral for a loan subject to fulfillment of mortgage condition as per law. A JDA approved land, on the other hand, comes with all amenities and is a fine choice for homeowners. It is important to ascertain that the Society Patta Property is free from all encumbrance and contributions. You can do so by referring to the encumbrance certificate, which will highlight any issues or outstanding debts. Similarly, property papers should be examined by advocate to ensure that they are not linked to any frauds to avoid being duped by landowners. As a practice, every document must be thoroughly verified prior to use to ensure the safety and security of all parties involved. How do you register your name with Patta Land? The owner must apply in the prescribed format at their respective district Tehsildar’s office. The procedure of filing a patta registration has also been automated because of technological advancements. The landowners has to apply for patta registration physically. The application form for issuance of a patta, also known as a patta registration form, generally asks for information on the land parcel’s ownership, size, location and the type of land (residential and commercial). According to government regulations, the procedural form should also be supported with additional paperwork including KYC such as the individual’s identity proof, address proof and so on. After receiving the land patta registration application, a selected officer from the Tehsildar’s office visits the property for investigation and reporting. The patta registration is given to the landowner after the inspection is completed successfully; the inspector however, retains the right to refuse the application in case of any issues. The patta certificate is issued in Hindi. We should be aware that only the physical copy of the certificate is issued by the concerned authority. FAQs What is a JDA Patta? A JDA Patta is a legal document issued by the relevant authority, typically the municipal corporation or development authority, granting permission or approval for a Joint Development Agreement (JDA) between a landowner and a developer for the development of a property. What is a Joint Development Agreement (JDA)? A Joint Development Agreement (JDA) is a legal arrangement between a landowner and a developer where the landowner provides the land, and the developer undertakes the responsibility of developing the property, typically for residential or commercial purposes. Why is a JDA Patta required? A JDA Patta is required to legally formalize the agreement between the landowner and the developer for the development of the property. It grants permission to the developer to undertake construction activities on the land. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi

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Punjab Land Mutation

Government Schemes / /

The property mutation process in Punjab, we have to first look into its significance. For instance, why is a mutation certificate required if legal wills and sale deeds are enough to prove transfer or ownership? Most importantly, can a mutation certificate help us avoid title conflicts in the future? In this article, we will answer all your queries while we share an overview of the property mutation process in Punjab. Using technology, Punjab Land Records Society plan strategies and policies offer efficient and effective services related to land and revenue. Established by the Government of Punjab, the society’s main objective is to monitor and oversee the execution of the digitisation and computerisation of land records and documents related to it in Punjab. The society offers services through several common access infrastructure such as Sukhmani Centers. It is a state level body formed primarily to manage land records in Punjab in all aspects and to oversee the policy framework of the Punjab State E-Governance Society (PSEGS). Why do we need property mutation after sale deeds, wills, or registration? a sale deed, will, or registration certificate simply indicates that the property has undergone ownership change. Property mutation is the crucial step that involves updating ownership records with the local municipal authority and state records. It is done to ensure that the new owner’s name is reflected in official records after the completion of a sale deed, will, or registration. Importance of property mutation Legal validation: Property mutation provides legal validity to the transfer of ownership. Tax assessment: It helps in the accurate assessment of property taxes based on the current ownership. Conflict protection: Updating the legal municipality records can protect your property from disputes over title or ownership. Ownership chain: Property mutation also helps in establishing a chain of ownership which is essential for legal or financial purposes. Encumbrance clearance: Lastly, encumbrances missed out during the sale or registration process gets highlighted during mutation, which can be a big help for the current owner. Documents needed for property mutation process in Punjab Property mutation, also known as property transfer, is a crucial process in Punjab that requires specific documents for completion. Here are the essential documents needed for property mutation: Sale deedA Sale Deed is a legal document that proves the transfer of ownership from the seller to the buyer. It includes details of the property, buyer, and seller. Identity proofValid identity proof such as Aadhar Card, PAN Card, or Voter ID of both the buyer and seller is required for verification. Property tax receiptsRecent property tax receipts need to be submitted to ensure that all dues are cleared. Encumbrance certificateAn encumbrance certificate is necessary to verify that the property is free from any legal dues or liabilities. No objection certificateIf the property you’re buying or inheriting falls under a cooperative housing society or similar, an NOC from the society is required Death certificate/signed willThis is applicable in cases of inheritance where a signed will or gift deed can be used to prove voluntary property transfer. In case of the demise of the original owner, a death certificate would be needed. Power of Attorney (POA)In case of inheritances, a POA is required to prove granting of legal succession of assets.Ensuring all these documents are in order will facilitate a smooth property mutation process in Punjab. Step-by-Step guide on property mutation application in Punjab Step 1: Obtain mutation formVisit the local Municipal Corporation office or download the mutation form from the official website. Step 2: Fill Out the formProvide accurate details such as property address, owner’s name, and contact information. Step 3: Attach required documentsInclude documents like sale deed, identity proof, and property tax receipts. Step 4: Submit the formSubmit the filled form along with the documents to the concerned authority at the Municipal Corporation office. Step 5: Payment of mutation feesPay the applicable mutation fees as per the Punjab government guidelines, which is Rs 600 across all property types. Step 6: Verification and approvalThe authorities will verify the details and process the mutation request. Step 7: Receive mutation certificateOnce approved, collect the mutation certificate from the office. Checking property mutation status online in Punjab Visit the official websiteGo to the official Punjab Land Records website and click on Status of transfer after registration. Search by vaseeka or mutation numberIn the next page, fill in the district, tehsil, village, and transfer number and click on Search Review the statusThe website will display the status of your mutation application below. Filing an appeal if property mutation is rejected Reasons for rejection Common reasons for rejection include incorrect documentation, disputes over ownership, or discrepancies in property details.Steps to file an appeal Obtain a copy of the rejection order from the concerned authority. Prepare a detailed appeal stating the reasons for challenging the rejection. Submit the appeal to the Deputy Commissioner along with supporting documents within the specified timeline. Attend the hearing scheduled by the authority and present your case. It is important to note that appeal should be filed within 30 days from the date of rejection. If the appeal doesn’t give favourable results, individuals can further file a suit for declaration of title in the civil court. FAQs How long does the mutation process take in Punjab? The mutation process may take up to a minimum of 15 days or a maximum of 30 days. Any delay beyond this should be reported to the authority. Who is responsible for initiating the mutation process in Punjab? The buyer or the transferee of the land is typically responsible for initiating the mutation process by submitting the required documents to the concerned revenue authority. Practice area’s of B K Goyal & Co LLP Income Tax Return Filing | Income Tax Appeal | Income Tax Notice | GST Registration | GST Return Filing | FSSAI Registration | Company Registration | Company Audit | Company Annual Compliance | Income Tax Audit | Nidhi Company Registration| LLP Registration | Accounting in India | NGO Registration | NGO Audit | ESG | BRSR | Private Security Agency | Udyam Registration | Trademark Registration |

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Assam Namjari

Government Schemes / /

Integrated Land Records Management system (ILRMS) is a portal which helps the Assam Government in maintaining all the land records in the state. The portal also ensures that Revenue Circle, Sub-registrar, Deputy Commissioners’ offices and the Directorate of land Records remain interconnected with each other to allow all the process of transfer and registration of land records are done in a smooth manner. Land mutation, or Namjari, is vital in legal land transactions. It involves transferring ownership rights and updating property details in the revenue record. Importance of Land Mutation Upon succession or transfer of land, proprietors, landholders, mortgagees are obligated to apply for mutation of their name in the ROR (Jamabandi) as the rightful owner. This process, applicable to various ownership types (proprietor, landholder, manager, mortgagee), can be initiated through sale, mortgage, gift, inheritance, or will. However, mutation for annual patta land is restricted to inheritance. Mutation documents play a vital role in Determining property tax liabilities Establishing ownership evidence Verifying ownership during property transfers Documents Needed For Land Mutation pplication Form: You can obtain the relevant application form from the office of the Circle Officer or Deputy Commissioner. Proof of Identity: You will need to provide photocopies of your valid identity documents, such as your Aadhaar card, PAN card, or voter ID card. Proof of Address: You will also need to provide proof of your address, such as your ration card, utility bill, or bank statement. Documents Relating to the Land: Depending on the reason for the mutation, you will need to provide different documents relating to the land. For example, if you are applying for mutation due to a sale, you will need to provide a copy of the registered sale deed. If you are applying for mutation due to inheritance, you will need to provide a copy of the death certificate and inheritance certificate. Here is a more detailed breakdown of the documents needed for some common types of land mutations in Assam: Mutation by Sale Registered sale deed Up-to-date land revenue receipt Declaration stating that the applicant does not possess land in excess of the ceiling limit laid down under the Assam Fixation of Ceiling on Land Holding Act, 1956 Copy of updated Khazana receipt Affidavit swearing that the Applicant/Applicants is/are the son/daughter/wife/legal heirs of the deceased pattadar Affidavit swearing that the Applicant/Applicants have not transferred the property to anyone earlier nor mortgaged/nor created any charge over the property to be mutated Proof of death of the deceased Pattadar in whose place Mutation (Registration) is sought Affidavit swearing that the person to whom the Applicants applied as successor had not transferred the property during his/her lifetime Copy of NOC obtained from D.C. in case of transfer of land Mutation by Gift Registered gift deed Up-to-date land revenue receipt Declaration stating that the applicant does not possess land in excess of the ceiling limit laid down under the Assam Fixation of Ceiling on Land Holding Act, 1956 Copy of updated Khazana receipt Affidavit swearing that the Applicant/Applicants is/are the son/daughter/wife/legal heirs of the deceased pattadar Mutation by Inheritance Death certificate of the deceased pattadar Next of kin certificate Probate from competent court in case of a will Affidavit mentioning the relationship of the applicant with the deceased pattadar Declaration in the form of an affidavit that the land intended to be mutated in place of the deceased pattadar has not been transferred when he/she was alive Declaration in the form of an affidavit that the total land of the applicant does not exceed the ceiling limit as per the Assam Fixation of Ceiling on Land Holding Act, 1956 after mutation Up-to-date land revenue receipt Types Of Land Mutation In Assam Office Mutation This is the most common type of mutation and is done through the office of the Circle Officer or Deputy Commissioner. It can be initiated for various reasons, including: Sale of land Gift of land Inheritance of land Mortgage of land Cancellation of a mortgage Partition of land The process involves submitting an application with supporting documents, such as the sale deed, gift deed, inheritance certificate, or mortgage deed. Once the application is approved, the Circle Officer or Deputy Commissioner will update the land records to reflect the new owner or possessor. Field Mutation This type of mutation is less common and is usually done in rural areas. It involves a physical inspection of the land by the Circle Officer or Lot Mandal to verify the change in ownership or possession. The process is similar to office mutation, but it may take longer due to the need for a field visit. Conversion from AnuualPatta to Periodic Patta: This process changes the status of land settled for one year (Annual Patta) to a longer tenure (Periodic Patta), giving the owner permanent, heritable, and transferable rights. Partition of Land: This type of mutation divides a piece of land into smaller pieces, each with its own owner. How To Apply For Office Mutation In Assam? Applying for Office Mutation in Assam- Here’s how you can apply for office mutation in Assam Collect Documents Application Form: Obtain the form from the Circle Officer or Deputy Commissioner’s office. Proof of Identity: Aadhaar card, PAN card, voter ID card (photocopies). Proof of Address: Ration card, utility bill, bank statement (photocopies). Documents Relating to Land: Sale: Registered sale deed, up-to-date land revenue & Khazana recipes, declaration not exceeding land ceiling limit, affidavit on absence of previous transfers, etc. Gift: Registered gift deed, similar documents as sale. Inheritance: Death certificate, next-of-kin certificate, probate (if applicable), affidavit on relationship, non-transfer during deceased’s lifetime, land ceiling declaration, etc. Other documents: Depending on the specific reason for mutation, additional documents may be required. Submit Application Once you have all the required documents, submit the application form and supporting documents to the Circle Officer or Deputy Commissioner’s office responsible for your land area. Pay the necessary fees, which can vary depending on the type of mutation and location. Verification and Hearing The office will verify your documents and may schedule a hearing if necessary. Attend the hearing if required and address

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Licensing of payment banks

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The notion of Payment Bank has gotten both outstanding and reaching hooks in its banking circle industry in the recent era. Payment Bank refers to a recently created RBI model that accelerates transactions, similar to a traditional bank, with the exception of issuing credit cards and lending. To launch an online Payment Bank in India, a firm or an NBFC must first obtain a Payment Bank License from the Reserve Bank of India. Furthermore, the concept of a Payment Bank has gained a lot of traction because it has the power to provide extensions to the government’s financial targets. It should also be highlighted that the concept of demonetization dramatically transformed the Indian economy. As a result, individuals are relying more on digital payment gateways and paperless transactions, which has boosted the popularity of E-wallets and Mobile Wallets,  Payment Banks The Reserve Bank of India first proposed the concept of a specialised bank model in 2013. Payments Bank was the name given to the institution. It should be mentioned that, like other Banks, a Payment Bank offers a variety of financial services, with the exception of credit cards and loan facilitation. The applicant organisation must receive a Payment Bank License from the Apex Bank in order to operate a Payment Bank in India. In addition, the Reserve Bank of India will grant the applicant company a Payment Bank License under Section 22 of the Banking Regulations Act 1949. The applicant is permitted to engage in banking activities under the terms of the licence. The phrase “banking activities” has the same meaning as it does under the Banking Regulation Act’s section 5 (b) and 6 (1) (a) to (o) provisions. The Indian economic structure has been fully reframed by demonetization. People are depending more on paperless transactions nowadays and tend to use digital payment portals. It has given a sudden boost to earlier outcast e-wallets or mobile wallets. Payment banks are the main niche of such online gateways. One needs to acquire a payment bank license to start any payment gateway. Payment Bank is approved by the Reserve Bank of India (RBI). The maximum amount of money currently reserved for these types of Banks is INR 1 lakh per client which will be continuously upgraded. Both current and savings accounts can be operated under this Bank. Payment banks shall be licensed under the Companies Act, 2013 as a public limited company. And accredited under Section 22 of the Banking Regulation Act, 1949, subject to certain licenses to regulate their operations, in particular with regard to the reception of payments necessary and the provision of services. They can provide a service that links to bank cards, online banking, and ATM cards Payment Bank is also known as a split Bank will be allowed to set up shops (branches), ATMs, business books, etc. However, it will be limited to the activities authorized by the Bank under the Banking Regulation Act, 1949. The minimum amount paid by the bank to pay will be one hundred thousand. These payment banks are licensed and certified under a regulatory body Payment Bank License Regulatory Structure Banking Regulation Act 1949. Companies Act 2013. Deposit Insurance & Credit Guarantee Corporation Act 1961. Foreign Exchange Management Act 1999. Payment & Settlement System Act 2007. Reserve Bank of India 1934. Objective to give Payment Banks License The core objective of the Payments Bank is to expand payments and financial services in a stable, technology-driven environment to all low-income households, small businesses, and migrant workers. The Reserve Bank of India aims to penetrate financial support through the support of payment banks in all remote areas of India. With a secure payment gateway for all transactions, it aims to redefine the Indian economy. Key Benefits of the Payment Bank License in India Zero Balance Account- One of the major advantages of a payment bank is that the account holder is not forced to maintain a certain amount as the minimum needed amount. That means that a person’s account balance can be zero. Increased Interest Rates- The cost savings resulting from operational efficiency are passed on to the client in the form of increased interest. Convenience- Another important advantage of a Payment Bank is that, thanks to its extensive distribution network, telecom service providers and mobile wallets can turn their retail locations into distinct banking sites. Secure and Safe- The Reserve Bank of India developed the concept of a payment bank as one of the secure forms of online transaction due to 4 factor authentications. Account Number and the Mobile Number are Same- Normally, this is a minor feature, but it improves the level of convenience for cardholders, particularly small business traders, merchants, and others, because they do not need to remember any other number like an account number to conduct transactions. Offers for Cashback and Discounts- A payment bank, like any other mobile wallet, provides the customer with a variety of discount and rebate incentives. Eligibility to get Payment Bank License As a minimum pay-up capital of 100 crores is required, the Reserve Bank of India has laid down a long list of qualified players for the Payment Bank license. Let’s take a sneak peek at the qualifying promoters who can execute the licensing procedure for the Payment Bank: Current non-bank Prepaid Payment Instrument (PPI)issuers approved under the 2007 Act on Payment and Settlement Systems. NBFCs ( Non-Banking Finance Companies) Professionals or Individuals Corporate Business Correspondents (BCs) Supermarket Chains Public Sector Entities Real Sector Cooperatives owned by residents Mobile Telephone Companies Companies (Public companies) In addition, if it has a joint venture with an existing scheduled commercial bank, a promoter/group of promoters may be eligible for a Payment Bank License. Capital Requirements in India for Obtaining a Payment Bank License To begin payment in India, the applicant company must have a minimum paid-up equity of Rs 100 crore. A payment bank must have a minimum CAR (Capital Adequacy Ratio) of 15% of its total RWA in India (Risk Weighted Assets). The same

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Registered stock exchanges in india

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Indian stock market is one of the oldest and most robust markets among emerging economies. With the rapid improvement in the exchange infrastructure and better investor protection by the market regulator (SEBI), the trade volume is on the rise. The technological advancement such as trading via mobile apps, the traders and trade volume has shot up recently. In this regard, National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) are well-known exchanges in the country. But beyond these two, India has four other permanent exchanges. This takes the tally to a total of six exchanges. List of Stock Exchanges in India A stock exchange is a place or platform which hosts a market where buyers and sellers come together to trade for specific hours during business days. The trade could be stocks, commodities or even currencies. As per SEBI’s data (as on January 2020), there are about nine exchanges in India, but only a few are active and permanent. Bombay Stock Exchange (BSE)- BSE is the oldest stock exchange in Asia. It is the first exchange as well. It was established in 1875 and was formerly known by the name of –The Native Share & Stock Brokers Association. BSE is located at Dalal Street, Mumbai and is one of the two large stock exchanges in the country. It was founded by Mr Premchand Roychand, famously known as the Cotton King, the Bullion King or the Big Bull. But the story of BSE starts back in the 1850s when 22 stockbrokers would gather under banyan trees in front of Mumbai’s Town Hall. The group eventually moved to Dalal Street in the year 1874. In 1986, Sensex was introduced as the first equity index to provide a base for identifying the top 30 trading companies of the exchange in more than 10 sectors. Apart from Sensex, other important indices of BSE include BSE 100, BSE 200, BSE 500, BSE MIDCAP, BSE SMLCAP, BSE PSU, BSE Auto, BSE Pharma, BSE FMCG, and BSE Metal. It ranks amongst the 10 most valued exchanges globally. BSE also came out with an IPO and is listed in NSE. Further, BSE not only offers trading in equities but also in derivatives instruments, including futures and options. In recent years, it has expanded its product base and offers commodities derivatives too. Commodities include gold, silver, almond, crude oil, steel and cotton. National Stock Exchange (NSE)- While NSE is young when compared to BSE, it is still one of the largest exchanges in the country. NSE came into the picture in the year 1992 with Vikram Limaye as its CEO. It was recognised as a stock exchange by SEBI in 1993 and commenced operations in 1994. It started with the launch of the wholesale debt market, followed shortly after by the launch of the cash market segment. NSE introduced the advanced electronic trading system, which removed the paper-based settlement system from trading. It offered an easy trading facility and emerged as a competitor for BSE. In the year 1995-96, NSE launched the NIFTY 50 Index and commenced trading and settlement in dematerialised securities. Nifty lists out the top 50 companies which traded on the NSE stock exchange market. Apart from Nifty, other key indices of NSE include Nifty Next50, Nifty500, Nifty Midcap150, Nifty Smallcap250 and Nifty MidSmallcap 400. National Securities Depository Limited (NSDL) was formed to provide depository services to investors. NSDL allows investors and traders to securely hold and transfer their stocks electronically. Soon after, NSE expanded its product offerings as well. Among other services such as clearing and settlement, it not only offers equity and equity derivatives instruments but also offers commodities and currency derivatives. Multi-Commodity Exchange (MCX)- MCX is one of the largest commodity exchanges in the country. As the name suggests, this exchange is only for trading in commodities, including agri and non-agri products. These include cotton, crude palm oil, rubber, and cardamom. Non-agri includes base metals (lead, aluminium, nickel, zinc and copper), bullion (gold and silver) and energy (crude oil and natural gas). It is the first listed (both BSE and NSE) commodity exchange in India and started its operations in 2003. It is based out of Mumbai. While it offers both futures and options contracts across its products, it also started to offer index futures contracts. These include MCX BULLDEX (bullion index), MCX METLDEX (metal index) and MCX ENRGDEX (energy index). Though these are predominantly used by hedgers, traders, businessmen and even by companies, the volumes are growing. But the commodities market is yet to make a mark like the equities market. National Commodity and Derivates Exchange (NCDEX)- NCDEX is another largest commodity exchanges in the country that started its operations around the same time as MCX. NCDCEX, unlike MCX, only offers agri products for trading. These include cereals and pulses (including Chana, Barley, and Moong), Oil and Oil seeds (including Castor seeds, Soybean, Mustard seed and crude palm oil), Fibres (including Kapas and cotton), and Spices (including Turmeric and Coriander). In recent years, NCDEX also started to offer index products such as AGRIDEX. India International Exchange (India INX)- A relatively new entrant in the exchange market in the country. Opened in January 2017, India INX is India’s first international stock exchange. It is also a subsidiary of BSE and is located at the International Financial Services Centre (IFSC), GIFT City, in Gujarat. It is claimed to be the world’s most advanced technology platform with a turn-around time of 4 microseconds which operates 22 hours a day and six days a week. There are two sessions: 04:30:00 Hours to 17:00:00 Hours and 17:00:01 Hours to 02:30:00 Hours. India INX also launched the Global Securities Market, an international primary market platform in India that connects global investors with Indian and foreign issuers. Currently, INX offers only derivative products, including equity, currency and commodities derivatives and debt instruments, including masala bonds and foreign currency bonds. As per recent media reports, INX will soon facilitate buying and selling of shares of foreign stocks, including major US and Europe-listed companies, through its platform. NSE IFSC- NSE IFSC

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